Aptera’s Wise CapEx Has A HUGE Bonus!
All right holy crap like okay let just let me just say holy crap this is I think how electric vehicle companies ought to be run okay because aptera basically had an interview with aptera Owners Club it’s a great Channel I watch all this stuff it’ll be the first link
In the description below if you want to watch the full thing but Steve asked epa’s co-ceos exactly what their Break Even point was as in how many vehicles does your company have to sell in order to break even and start earning a profit and their answer speaking from their
Head of Finance at the company that has run all the numbers done all the math looking at the bill of materials the cost to keep the company afloat expressed such an insanely small number of 6,000 units a year to break even and that just blew my mind I was like wait
Wait how is this possible that sounds way too good to be true but it all starts making sense when you start thinking backwards in regards to how much money can these electric vehicle startup companies burn how much can lose on every vehicle sold and essentially apter’s focus on efficiency trickles
Down into the financial structure of the company itself so it’s cool on one hand just to have such an incredible vehicle that in my opinion looks beautiful it can charge itself from sunlight it’s super fast it gets 10 m per Kow hour yeah all of that is great but what it
Enables especially with smart manufacturing which aptera is pioneering with CPC working on this body in carbon which they’ve been demonstrating they’ve already built one six main key key body structures which are very rigid very durable increase the safety of the vehicle while allowing it to be super
Lightweight and all that by reducing the capex required to get into production that means that aptera needs the fraction of investment or in other words the fraction amount of cash to burn through in order to break even in order to turn a profit than all of these other
Startup companies do so in the same way you may see a vehicle like rivan which is cool and very capable don’t get me wrong I love rivian’s product and I love their brand but because it’s such an inefficient vehicle and that trickles down into the company’s financials as
Well relying on a paint shop which aptera doesn’t relying on 135 Kow hour battery packs to get it to move down the road and being over 7,000 lb all of that trickles into a very unprofitable product which means rivan has to raise up a lot more Capital they have to get a
Lot more money together to burn through all of this loss on every vehicle sold which means they have to radically re engineer the vehicle and that’s why they’re shutting down this summer and we’ll see how the R1 line performs later this year they claim it’s going to reach
Gross profit but again it’s going to have to deliver a very large number of vehicles that are profitable before the company can actually Break Even because the vehicle itself inherently is so inefficient and is not efficiently manufactured for example if rivan just lost about $5,000 on every vehicle sold
And they sold 50,000 vehicles in a year then that basically means you’re going to have to take $250 Million worth of investment in order to keep that assembly line running and rivan loses more like $40,000 per vehicle sold so now you can imagine how much investment
How much selling off of stock or how much debt they’re going to have to take on in order to get to that point where they can actually break even and turn a profit and they’ve got the whole R2 line to rev up so it’s not a great financial
Look however the aptera situation is almost the complete polar opposite because the aptera is so cheap to build and because doesn’t require a paint shop it’s so much more simple to manufacturer you only got three wheels and two doors and two seats to worry about and of course battery pack most expensive part
Of an electric vehicle EPA requires the smallest overall battery pack by far of any North american-based electric vehicle that is you know Highway capable because of this efficient manufacturing that requires a lot less money to build and therefore it’s a lot more profitable from the start they only got to sell
6,000 of these things to reach a point where okay they’re at a break even point and to just keep in mind 6,000 Vehicles can be achieved with a single shift the factory that I got to check out in San Diego and we all saw those tour videos
That Chris Anthony has done hats off to Chris for having to give that same tour to so many different people so many different times he’s got it down he keeps it entertaining and funny and interesting so thank you but that vehicle alone with a single shift is
Able to crank out 6,000 Vehicles a year and that’s assuming the factory takes holidays off okay and we know because epter has been working with Monro Associates that it is possible for them to add an additional shift to that existing Factory and then they can start building 40 Vehicles a day and then
Essentially within a year of production starting aptera should be profitable and no other electric vehicle startup company is even close to achieving profitability even if they’re in production we’re seeing Fisker ocean higher bankruptcy lawyers we’re seeing rivan say that oh maybe we’ll achieve profitability in 5 years but we’re going
To have to sell all of your guys’ shares to do that lucid losing hundreds of thousands of dollars per car I don’t know how the heck they’re alive right now profitability for Lucid is kind of optional it seems like in their earnings calls they’re like eh should we make a
Profit I don’t know is it that important and yet all these Venture capitalists and billionaires are willing to pour all this money into these inefficient startups that don’t know how to turn a profit meanwhile EPA is like yeah they give us about a year and we can turn it
Into a profitable business and I also want to double down on this point and send this exact video to a ton of people doubting aptera out there because many out there complain and I hear this comment a lot even from people like MKBHD that yes they believe that aptera
Efficiency claims okay I can wrap my head around 10 m per kilow hour in solar charging and getting up to 40 Mi of range per day for free from the nuclear reactor in the sky they can get on board with all that but a lot of people
Complain no the aptera business model is what’s going to fail simply because because there’s not enough demand you’re going to need to sell hundreds of thousands of these things in order for the company to stay afloat and a lot of people just criticize that well there’s not enough demand for this company to
Become profitable they would need to find hundreds of thousands of buyers every single year and there’s just not going to be enough demand for a vehicle that’s a two-seater with three wheels and it’s too weird looking or that’s too Niche or it’s not practical enough even though it’s got more storage space than
My model 3 it’s got better range than any other electric vehicle in its price category it’s also cheaper once you factor in 5 to 8 years of ownership cost than pretty much any other new vehicle on the road doesn’t matter that it has carplay Android auto the right to repair
Aspects no none of that matters because there’s only two seats or it’s not safe enough even though it’s got side impact protection and airbags and huge crumple zones on the front and back but this number that aptera is giving us also squashes that theory as well because it
Means okay let’s say it’s nich and aptera can only sell 20,000 of these units a year maybe that’s not big enough picture for for you maybe that’s making you feel like oh well it’s not outselling the Tesla Model y so why even manufacture it whereas in reality I
Think this is exactly what the EV industry needs not everybody wants to buy the exact same kind of car some people want to buy things that are more specialized to fit their needs and I think the aptera personally fits a ton of different people’s needs but knowing
That the company can be profitable and use that money to develop other vehicles to fit different use cases they could have more seats they could have more Wheels they could have more practicality and Tera is going to be able to bring in reasonable profits by just convincing 10
Or 20,000 people a year that having a self-powered vehicle that’s capable of 10 m per Kow hour and accessing the far superior Tesla Supercharger Network because KNX has been there from day one they don’t need to outsell the Tesla Model 3 they don’t need to outsell Tesla’s Next Generation vehicle the
Compact car a lot of people act like oh well who’s going to buy an aptera when those things exist well people who want more range people who want right to repair people who want carplay people who can’t charge from home there’s 35% in growing number of Americans living in
Apartment buildings most of which don’t have home charging Solutions and you can’t expect people who are buying you know 250 mile range EVS to do all of their charging at superchargers because they get busy and superchargers tend to be more expensive whereas an aptera just parked outside your apartment complex is
Probably going to bring enough energy in from the Sun to cover your daily driving needs and even if it’s a totally cloudy area and you barely get any solar charging well if you have to charge your vehicle at a DC fast charger wouldn’t you want as much range as possible so
You don’t have to go back there every single day aptera checks all these boxes for so many people that’s why just as a reminder before all the aptera haters complain oh there’s not enough demand for this kind of a vehicle well they just surpassed 47,000 paid reservations 47,000 people
That were interested enough in this product to say you know what it’s a startup company but I’m going to give them a deposit here because I am interested I am curious in this prod product and I could see it working in my daily life so basically with a two shift
System at their first factory in San Diego there will likely be many other factories across the world in the future but the first factory capable of cranking out 15 to 20,000 Vehicles a year assuming attera shut off reservations for their vehicle today it would still take that factory several
Years to catch up on all of the deposits that they have currently that’s how much demand there is when it’s a startup imagine what the demand is going to be like when the vehicle actually in production and there’s real world reviews there’s people like me that are going to be driving them around
Reviewing them telling people all of the advantages of efficiency and all of the advantages of solar Mobility telling people all of these perks about this design and perks about having a right to repair Focus company that’s when you’re going to see a whole another wave of demand and I can tell you from
Experience the aptera turns heads like no other it’s just like the cybertruck people want to know more about it they’re curious about it they’re drawn to it and when you have a design is rad as the aptera does it’s not going to enter the market unnoticed even if it’s
Not for everybody even if you can’t make it work for your daily life you and people in your community you’re going to know about it and you’re going to consider it when those times in life come up where man home charging is getting expensive or supercharging is getting expensive maybe I should
Consider a vehicle that gets more miles per kilow hour than what I’m currently driving and that’s when the inevitable design of efficiency the aptera I think is going to enter the picture so my mind was blown by this spec that Chris Anthony dropped on us earlier today I
Can’t wait for more updates from the company are there any other things you’re excited about when it comes to Aba as a whole feel free to let me know down in the comments below and thank you to everybody supporting this channel directly it seriously helps us out a ton
As does just watching these videos so thanks again have an excellent rest of your day
Great Interview is available here: https://www.youtube.com/watch?v=QUuIbYLjSLs
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