Aptera has secured a manufacturer for its solar car, located in Shanghai.

      Aptera has teamed up with Shanghai’s Launch Design for a manufacturing program valued at up to $44 million, encompassing tooling, testing, and pilot production. Aptera will cover two-thirds of the expenses, while its recent report indicates it has $10.1 million in cash and expresses significant uncertainty regarding its ability to continue its operations.

      Aptera has secured a partnership to manufacture its solar car. The California-based company has entered into a manufacturing agreement with Shanghai Launch Automotive Technology, a design-for-manufacturing firm that employs over 3,000 people and has developed over 400 vehicle models, in a deal worth as much as $44 million.

      However, this figure does not represent incoming cash. Aptera is responsible for two-thirds of the program's approved costs, and Launch’s contribution, up to approximately $15 million, will be received as stock warrants for Aptera instead of cash.

      This distinction is important given Aptera's financial disclosures. By the end of June, the company had $10.1 million in cash and was spending between $2.0 million to $2.2 million monthly, alerting investors to serious doubts regarding its sustainability as a business.

      Aptera has also outlined its funding needs. It estimates that $40 million to $45 million will be necessary to support low-volume production in Carlsbad, in addition to an estimated $140 million to $160 million to achieve an annual output of approximately 20,000 vehicles.

      Thus, the situation involves a company facing a viability warning committing to finance two-thirds of a program it currently cannot afford. What it primarily gains are time and expertise, rather than cash.

      The real value lies in the expertise. Launch will supply assembly fixtures, tooling, vehicle testing, and pilot production, as well as a supplier network that provides finished subassemblies to California instead of individual parts.

      The location for the initial car production remains somewhat unclear. The announcement mentions that final assembly will occur in California, while industry reports interpret the pilot production phase as happening first at Launch’s facility.

      Demand has never been an issue for Aptera, with approximately 49,300 reservations reported by the end of June, an EPA certificate in place for its launch edition, yet it has yet to deliver any vehicles to customers.

      Europe has witnessed similar scenarios twice before. Lightyear suspended its production of a €250,000 solar vehicle to pursue a less expensive model and subsequently collapsed, while Sono Motors has abandoned its Sion project.

      Neither failure was because sunlight doesn’t recharge batteries. The issue lay in industrialization, which is exactly the capability Aptera has now outsourced from China.

      The first 40 production vehicles are intended to be manufactured in the fourth quarter, but the funding needed to produce the subsequent 20,000 vehicles is currently unavailable.