|1||In addition to its 1,000+ mile battery range, the Aptera can travel 40+ miles a day on the free power from its integrated solar panels.|
|2||Gas cars are inefficient and EVs today aren't efficient enough.|
|3||The Aptera is aerodynamic, lightweight, strong, and fun to drive!|
|4||By 2022, we expect to realize margins of 35% selling 10,000 units per year.|
|5||Each Aptera owner could reduce their carbon footprint by over 14,000 pounds of CO2 per year.|
|6||It's safe. The Aptera has a passenger safety cell stronger than that of any other vehicle on the road today.|
|7||It's affordable. The Aptera uses less material to build making it cheaper to manufacture.|
We put in solar with battery backup in 2003 and was on the early list for the original Aptera 2e. When that didn't happen I went with a LEAF when it came out in 2011 and put 90,000 miles on it before trading it in for a Tesla model 3 in 2018. I am never, EVER, going back to fossil fuels. There is no need.
When I heard that Aptera was back, with a big battery, and solar panels so it might not even have to be plugged in... I was IN!
Aptera will change the minds of so many people that I had to be an investor to help them on their journey to getting game-changing cars into the exploding EV market.
In 2005, Aptera’s founder, Steve Fambro, frustrated by horrible gas mileage and freeway congestion, endeavored to design a vehicle more efficient than any other. His goal was to legally drive in the carpool lanes of Southern California in a safe, fuel-conscious vehicle. He began researching low-drag aerodynamics and composite aircraft construction methods.
Through a mutual friend, he met Chris Anthony in San Diego who also had an interest in composites. Chris was building his innovative wakeboard boat line with a novel and eco-friendly resin infusion process that would be a perfect fit for a lightweight composite structure for vehicles. Together they worked on a new monocoque safety cell structure for the Aptera, followed by a prototype vehicle with two seats and three wheels. This proved Steve’s hypothesis that a low-drag, aerodynamic body shape doesn’t sacrifice comfort, drivability, or safety.
The first operating prototype achieved over 300 miles per gallon(mpg) and was a great inspiration to the new Aptera that you see above. By 2009, Aptera Motors had over 50 employees, several prototypes, and a production-intent vehicle that was ready to be manufactured.
Unfortunately, the new management team set the company on a path that required a $400M+ loan from the Department of Energy. The time it took to receive the loan was far too long for the company to survive, and the company ceased operations and was liquidated in 2011.
Now, with renewed vigor and access to better technologies, Aptera is back to establish an automotive brand that delivers the “future”. Our advanced designs lever aerodynamics, clever lightweight materials, and efficient drivetrains to create a product portfolio of outstandingly safe, efficient, long-range electric vehicles that are also a blast to drive.
Aptera is currently gathering early-stage investments to design, manufacture, and distribute the Aptera electric vehicle. Our first fundings will be used to finalize, test, and optimize a production-intent design of the Aptera. After that, we will raise production ramp funds and begin manufacturing of the world’s most efficient vehicles.
Steve and Chris are looking for investors who share their vision for efficient, sustainable transportation that has a meaningful impact on people’s lives.
Our initial target price is between $26K - $49K. Our initial target cost is between $21K - $33K. By 2022, we expect to realize margins of 35%. However, please note that these numbers may change once we start production. These are future projections and cannot be guaranteed.
Our design ethos distinguishes us from all other vehicle manufacturers, as we respect the high economic and environmental cost we pay for transportation.
We have changed the fundamental design criteria for vehicles. Instead of designing for styling or lifestyle aesthetic, the Aptera emphasizes efficiency and safety. By doing so, Aptera has distinct advantages over any passenger vehicle currently being produced.
Our vehicle makes use of superior aerospace quality composites for safety and weight savings and advanced aerodynamics for unprecedented low-drag performance. These two features plus an extremely efficient powertrain and a low rolling-resistance design make the Aptera the most efficient vehicle available today.
All of this yields a vehicle that is more efficient, cheaper to build, safer, and better for the environment than anything available today. We hope you will join us in building a more efficient future for transportation. This is the first step in our plan to positively impact the planet and as many peoples' lives as we can. The next step is putting as many Apterae as we can on the roadways of the world. We truly appreciate your time in evaluating our potential.
*Our Never Charge Solar package provides over 40 miles a day and over 11,000 miles a year of free solar charging in many places. This is in addition to the battery pack range of up to 1,000+ miles when fully charged. Check our website: www.Aptera.us for a solar calculator that will show you the solar yield in your area.
**Also have a look at the download link above to a view .pdf with more detail on our approach, product, and team.
Aptera Motors has financial statements ending December 31 2019. Our cash in hand is $689,884, as of August 2020. Over the three months prior, revenues averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $391,500/month.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
We believe we build the most efficient transportation on the planet. Science drives our approach to building better vehicles and the result is something that can travel over 1,000 miles on a single charge. We believe our focus on efficiency will benefit the planet by using our resources more wisely and polluting less.
By 2021, we hope to create the first prototypes of the new Aptera. These prototypes will aid us with the testing and validation we need to perform to launch into production of the Aptera that next year. By 2022, we hope to produce 10,000 units per year of several variants of our 2 passenger+ vehicles. In five years, by 2024, we hope to produce 40,000 units per year with additional Aptera variants. These are future-looking projections that cannot be guaranteed.
Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.
Aptera Motors Corp was incorporated in the State of Delaware in March 2019.
Since then, we have:
Historical Results of Operations
Our company was organized in March 2019 and has limited operations upon which prospective investors may base an evaluation of its performance.
Liquidity & Capital Resources
To-date, the company has been financed with $2,300,000 in equity and $519,522 in SAFEs.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 6 months before we need to raise further capital.
We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.
We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 6 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.
Runway & Short/Mid Term Expenses
Aptera Motors Corp cash in hand is $689,884, as of August 2020. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $391,500/month, for an average burn rate of $391,500 per month. Our intent is to be profitable in 24 months.
Since the end of 2019, we have raised an additional $2.4M in funding and our R&D expenses increased accordingly to support our development vehicle builds.
In the next 3 - 6 months, we expect to make $0 in revenue and have $90K in expenses on average per month as we continue to raise funds. We have reduced our spend significantly as we have finished all the tooling and major parts spending for our first 3 development vehicle and test fixtures.
The design, manufacture, sale and servicing of vehicles is a capital-intensive business. Even if we successfully raise $550,000 from this offering, we estimate that we will need to raise an additional $20,000,000 plus to reach the vehicle production stage.
We do not have any other sources of capital on which to rely, besides the additional $2.4M raised in funding in 2020.
An investment in our shares involves a high degree of risk and many uncertainties. You should carefully consider the specific factors listed below, together with the other information included in this offering circular, before purchasing our shares in this offering. If one or more of the possibilities described as risks below actually occur, our operating results and financial condition would likely suffer and the trading price, if any, of our shares could fall, causing you to lose some or all of your investment. The following is a description of what we consider the key challenges and material risks to our business and an investment in our securities.
Our limited operating history makes evaluating the business and future prospects difficult, and may increase the risk of your investment. We were incorporated in March 2019 and we have not yet begun producing or delivering our first vehicle. To date, we have no revenues. Our vehicle requires significant investment prior to commercial introduction, and may never be successfully developed or commercially successful.
The design, manufacture, sale and servicing of vehicles is a capital-intensive business. Even if we successfully raise $550,000 from this offering, we estimate that we will need to raise an additional $20,000,000 plus to reach the vehicle production stage. We will need to raise additional funds through the issuance of equity, equity-related, or debt securities or through obtaining credit from government or financial institutions. This capital will be necessary to fund ongoing operations, continue research, development and design efforts, establish sales centers, improve infrastructure, and make the investments in tooling and manufacturing equipment required to launch our vehicle. We cannot assure you that we will be able to raise additional funds when needed.
We will likely need to engage in equity, debt, or preferred stock financing in the future. Your rights and the value of your investment could be reduced because of this. Interest on debt securities could increase costs and negatively impact operating results. Preferred stock could be issued in series from time to time with such designation, rights, preferences, and limitations as needed to raise capital. The terms of preferred stock could be more advantageous to other investors. In addition, if, in the future, we need to raise more equity capital from the sale of stock, institutional or other investors may negotiate terms at least as, and possibly more, favorable than the terms of your investment. Shares of our equity could be sold into any market which develops, which could adversely affect the market price.
We face significant barriers as we attempt to produce our vehicle. We do not yet have any prototypes and do not have a final design, a manufacturing facility or manufacturing processes. The automobile industry has traditionally been characterized by significant barriers to entry, including large capital requirements, investment costs of designing and manufacturing vehicles, long lead times to bring vehicles to market from the concept and design stage, the need for specialized design and development expertise, regulatory requirements and establishing a brand name and image and the need to establish sales and service locations. We must successfully overcome these and other manufacturing and legal barriers to be successful.
Significant developments in alternative technologies, such as advanced diesel, ethanol, fuel cells or compressed natural gas, or improvements in the fuel economy of the internal combustion engine, may materially and adversely affect our business and prospects in ways that we do not currently anticipate. If alternative energy engines or low gasoline prices make existing vehicles with greater passenger and cargo capacities less expensive to operate, we may not be able to compete with manufacturers of such vehicles.
Our vehicle will need to comply with many governmental standards and regulations relating to vehicle safety, fuel economy, emissions control, noise control, and vehicle recycling, among others. In addition, manufacturing facilities are subject to stringent standards regulating air emissions, water discharges, and the handling and disposal of hazardous substances. Compliance with all of these requirements may delay our production launch, thereby adversely affecting our business and financial condition.
Volatility of demand in the vehicle industry may materially and adversely affect our business prospects, operating results and financial condition. The markets in which we will be competing have been subject to considerable volatility in demand in recent periods. Demand for automobile sales depends to a large extent on general, economic, political and social conditions in a given market and the introduction of new vehicles and technologies. As a new start-up manufacturer, we will have fewer financial resources than more established vehicle manufacturers to withstand changes in the market and disruptions in demand.
We may have to seek loans from financial institutions. Typical loan agreements might contain restrictive covenants which may impair the Company's operating flexibility. A default under any loan agreement could result in a charging order that would have a material adverse effect on the Company's business, results of operations or financial condition.
The Company may never receive a future equity financing or elect to convert the Securities upon such future financing. In addition, the Company may never undergo a liquidity event such as a sale of the Company or an IPO. If neither the conversion of the Securities nor a liquidity event occurs, the Purchasers could be left holding the Securities in perpetuity. The Securities have numerous transfer restrictions and will likely be highly illiquid, with no secondary market on which to sell them. The Securities are not equity interests, have no ownership rights, have no rights to the Company’s assets or profits and have no voting rights or ability to direct the Company or its actions.
Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.
COVID-19 can materially impact our business. It is unclear how long the COVID-19 pandemic will last and to what degree it could hurt our ability to generate revenues. For example, it could complicate our ability to procure materials and partnerships. There may be other effects stemming from this pandemic that are deleterious to our company which we have not yet considered.
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