Towards Aptera IPO and Production.

Musical Opening OD to AB Tera the most efficient vehicle on the planet [Music] [Music] [Music] have terra cruising wingless flly I love of Terror It Feels So Right Glides down the Introduction high my name is Rich Rodriguez and welcome to my EP Tera Journey this channel is about the thrill of the all-wheel drive aptera on a twisting curving Mountain Road and the rush of adrenaline was sub4 second acceleration time and the pleasure of charging your car from the Sun and on some models the confidence of up to 1,000 miles of range but we don't have an aptera yet despite that there are some things I would like to share with you today first though a little about me I'm a trained electrical engineer so I understand understand how EVS work I'm an EV owner with over 150,000 miles of experience so I get range and charging I have an MBA in finance and I have been mentored by an investment banker in Venture finance and in my day job I read and analyze financial statements every day so what attracts me to the app Tera the awesome styling yes the sub four second 0 to6 the acceleration time yes is it the solar charging well yes though I live in the Rainy Northwest or is it AP tera's amazing efficiency for me it's all about efficiency because with apter's efficiency all these other things are possible for all these reasons I am an investor in EPA an ambassador and reservation holder well with the preliminaries done today's video will have five parts Part One Current financial market conditions these matter for when aptera does their IPO part two capitalization table to IPO part three app tera's capitalization table and IPO pricing part four app Tera missteps in-wheel Motors no more part five apter's $60 million pre-ipo financing so let's get Part 1 - Financial Market Condition started part one Current financial Market condition this matters for when aptera does their IPO I follow the 20 Bond Municipal Bond index to see where interest rates are heading I look at market conditions every week from a medium-term perspective rates have risen dramatically but with the signs of slowing inflation economists have trimmed US inflation forecast Paving the way for a Fed rate cut perhaps in September however the yield curve continues to Signal recession the yield curve indicator nearly almost always signals a recession when it's inverted with a creaky Consumer Finance exhibiting High delin rates as well as faltering commercial real estate markets I believe we're on the cusp of a recession we shall see it's not a good time to go public but it's a great time to start and grow a sustainable orientated startup like aptera Motors as a long-term investment in the Future Part Two capitalization Part 2 - Capitalization Table to IPO table to IPO many of you may be unfamiliar with a capitalization table how how it works and what it tells us about events leading up to an IPO in this section I will explain how a capitalization table works and what it might tell us about an IPO at the end of the section I speculate on pricing for aptera IPO what is a capitalization table a capitalization table or cap table is a table providing an analysis of a company's percentage of ownership equity delution and value of equity in each round of investment by Founders investors and other owners well that could sound like Greek to many of you so let's take a look at a simple cap table and walk through how it works once we do this you should have a better understanding of what most of you are thinking about the value of your shares so let's dig into this a rapidly growing company may need several rounds of financ to achieve its goals here in this example there are six rounds from Founders round where the founders might put in a few thousand dollars to the IPO round that could be hundreds of millions of dollars as the company grows it is presumed that Milestones are being accomplished these Milestones could be Patent filed or relationships with vendors or sales these Milestones add perceived value to the company as a consequence when the next Capital raise and stock issuance round occurs Shares are priced higher to account for the increased value of the company share dilution as the company sells more shares the percentage of ownership by the founders is diluted naturally as the percentage of outside shareholders goes up and shares are sold prior shareholders percentage of ownership goes down pretty simple so far right and of course as new Shares are issued total shares outstanding goes up again pretty simple now let's look at market capitalization with the exception of the founders round where market capitalization is arbitrarily assigned the market capitalization is simply the total number of shares times the price per share simple right now something interesting happens when you look at this table from the perspective of an investor on a round by round basis if you invested in the a your investment value increases by 200% a doubling in this example at the time of the B round because the share price increased this increase in your initial a round value continues through IPO because of the increase in share price in this example if you invested in the aound by the time of the IPO your shares increased by over 1,500% pretty amazing right the next column over shows the gains if you invested in the B round and held your shares to the IPO time and so on this shows how fortunate you may be by investing early I suspect there will be some aptera millionaires part three aptera cap table Part 3 - Aptera Cap Table & IPO Pricing and IPO pricing let's take a look at a portion of aptera Motors capitalization strategy to date this figure shows the aptera crowdfunding rounds that I participated in and I think I participated in every round notice the pricing of the shares in these rounds now when we include the percentage of increase from each round look at what happens the current offering price is $14.80 so if you invested at the $1050 round your share increase would be 41% if you invested in in the $3.80 round your increase would be 289 per. and so on early we funder investors have seen their Investments increase by 6,627 per. wow most of my investment dollars were in later investment rounds so my gain is currently about 60% of course that's only if there's a liquidity invent such as an IPO or an acquisition my 60% gain right now is on paper or a spreadsheet but we know an IPO is on the horizon for aptera sunny days are ahead I've been asked Rich what do you think the IPO price might be well given the current offering price of $14.80 and speculating there's one or maybe two more rounds before the IPO with maybe 30 to 40% increase in stock pricing the IPO price might be around $20 a share just saying once it opens who knows and yes market conditions matter sometimes markets are exuberant to see an IPO and the first day of trading stock shoots up 50% or more other times the market just yawns and the stock sinks from its initial opening price that's the vagrancy of the markets so there is how a capitalization table works leading to an IPO and we've looked at aptera Motors pricing of their shares and I've speculated on their IPO price part four aptera missteps in-wheel Part 4 - Aptera Missteps? Motors no more while I am an investor Ambassador and reservation holder of an EPA vehicle I have to admit there have been perhaps some missteps that have cost the company time and money the change from an infused honeycomb body type to the carbon fiber body yes it's better suited for the volume of sales expected but the change caused redesign increased engineering costs and likely delayed deliveries what about the change in the headlight placement from along the left and right outsides of the vehicle to the center of the vehicle yes it better complies with apter's understanding of the law in this area but it cost time dollars and effort in the redesign and now the change from in-wheel Motors to a standard front-wheel drive system with an inboard motor again this cost time and money and re-engineering of the drive system now I believe the company has removed all foreseeable engineering and supply chain obstacles leading to production thank goodness I believe the pressure is on to get vehicles out the door we are now onto production we can expect more changes once the vehicle hits production for example the original Tesla Road Roadster introduced in 2018 had a manual transmission lever after delivering about 500 vehicles in 2010 the Roadster was upgraded with a push button transmission improved heating ventilation and air conditioning a more efficient motor and improved sound deadening measures to reduce noise vibration and harshness nvh now I've harped on nvh in several of my videos because even if you get the hyper efficiency right if nvh is way off folks won't want to buy your product and yes to be clear I really want an all-wheel drive have terror but perhaps like the original Tesla Roadster we'll see improvements after maybe the first 500 or so produced and hopefully those improvements will include return of in-wheel motors and all-wheel drive part five apter's $60 million Aptera Pre-IPO pre-ipo financing in my last video linked up here I shared news with you about the signing of us Capital to raise the next round of funding for aptera Motors now we have some details of this offering not unsurprisingly this funding round looks like the mesine round that we covered earlier in this video US capital is offering $60 million in convertible notes what is a convertible note a convertible note refers to a short-term debt instrument or security that can be converted into Equity stock in a company convertible notes are often used by investors in startups and in preo companies they are structured as loans and then convert to a stock in the company these notes typically have an interest rate on the invested monies and they typically have a conversion discount that is when the note converts the stock you get a discount on the offering price these sweeteners attract insightful investors remember this investment round is for qualified investors these include an individual with net worth or joint net worth with a spouse or spousal equivalent of at least a million dollars not including the value of your primary residence or an individual with income exceeding $200,000 or joint income with a spouse exceeding $300,000 there are other qualified investor types including trusts registered stock Brokers and more I'll put a link below to the Securities and Exchange commission's current definition of what a quality ified investor Closing Remarks is well that's all I have for you today I look forward to sharing time with you again soon and reading your comments below until then stay well do good work Musical Closing and charge on wingless flat I Love teror It Feels So Right the future is now protect Mother Earth keep her healthy for what is worth what's your pleasure Luna a soul let's save the planet we're on a road Glides down the highway taking all from the sun no more dring can't you see we done [Music] EPA don't F EPA you know that it's right [Music]