Carlsbad solar vehicle maker Aptera Motors signed a manufacturing partnership worth up to $44 million with Shanghai-based Launch Design, the company announced Thursday, Aug. 20. The deal is the largest supply-chain commitment in the startup's history and keeps final vehicle assembly at Aptera's Carlsbad facility.
Under the agreement, Launch Design will supply finished subassemblies, tooling and assembly fixtures to Aptera (Nasdaq: SEV) as the company targets production of its first 40 customer vehicles in the fourth quarter of 2026. The first bodies and chassis are expected to arrive in October.
"This strategic investment enhances our resources, allowing us to bring proven design-for-manufacturing expertise and a global supply chain to Carlsbad without taking on the capital burden of building that expertise from scratch," co-CEO Chris Anthony said in the company's announcement.
Aptera will pay two-thirds of the program's costs in cash. Launch Design will accept the remaining third, up to roughly $15 million, in warrants to purchase Aptera stock. Full terms will be disclosed in a Form 8-K filing with the Securities and Exchange Commission.
What it means locally
Final assembly stays in Carlsbad. Launch Design's role is to consolidate hundreds of individual parts into larger subassemblies at its facilities overseas, then ship them ready for installation rather than as loose components.
Co-CEO Steve Fambro told the Carlsbad Chamber of Commerce podcast on Aug. 5 that at full production, the Carlsbad plant could support roughly 20,000 vehicles per year and up to 300 local jobs. Fambro said on the same podcast that Aptera holds approximately 50,000 vehicle reservations. As of March 31, the company employed 57 people, up 54% year over year, according to its Q1 2026 financial results.
Path to production
The partnership caps a string of milestones for the three-wheeled, two-seat solar electric vehicle. Aptera drove its first five validation vehicles off a 14-station assembly line in Carlsbad on May 12, received an EPA Certificate of Conformity on June 18 and issued purchase orders for its first 40 production bodies and chassis on Aug. 4.
Launch Design brings scale. The firm employs more than 3,000 people and has developed over 400 vehicle models for automakers including BYD, Ford, XPeng, Nio and Tesla. Aptera said the collaboration of more than a year has already reduced its projected bill of materials, though it has not disclosed by how much.
Financial context
Aptera ended Q1 2026 with $17.7 million in cash after raising $17.1 million in new capital during the quarter. The company has disclosed going-concern risks in its SEC filings, noting its ability to continue operations depends on raising additional capital. It expects to fund its share of the Launch Design program through existing resources, previously announced financing and future debt or equity raises.
What's next
Aptera still needs to clear Federal Motor Vehicle Safety Standards testing before it can deliver vehicles to customers. The first production bodies and chassis are due in October, with the initial 40-vehicle build targeted for the fourth quarter of 2026.
