Aeva secures $100M from Apollo with convertible notes to scale up

Aeva has struck a significant financing deal with funds managed by Apollo Global Management, receiving an injection of $100 million through 4.375% Convertible Senior Notes. The capital is targeted at accelerating commercial deployment of Aeva’s FMCW 4D LiDAR technology across automotive, robotics, industrial automation and other segments.

The securities carry interest at 4.375% per year and mature on November 15, 2032. The notes include an initial conversion price of $15.8643, which Aeva says represents a roughly 15% premium to the company’s closing share price on November 4, 2025. Interest may be paid in cash or in Aeva common stock, and upon conversion the company can elect cash, shares or a mix of both.

Soroush Salehian, Aeva’s co-founder and CEO, framed the transaction as a vote of confidence in the company’s perception platform, saying the funds will help Aeva scale existing engagements and pursue new programs across multiple end markets. The company also noted it will file a Form 8-K with the U.S. Securities and Exchange Commission with additional details of the transaction.

From a capital-structure perspective, convertible notes like these are a hybrid instrument: they provide near-term liquidity while offering investors potential equity upside. For Aeva, the financing reduces near-term cash strain as it ramps production and customer pilots, but it also introduces potential future dilution if notes convert to stock. The structure — interest in cash or shares and issuer choice on settlement — gives Aeva flexibility in managing cash flow and balance-sheet outcomes.

Market context reinforces why this moves matters. Analysts track LiDAR and perception sensors as strategic enablers for advanced driver assistance systems, autonomous vehicles and smart industrial systems. Many forecasts point to a compound annual growth rate in the double digits for the overall market through the end of the decade as OEMs and automation firms invest in robust 3D sensing stacks. Aeva’s FMCW approach, which reports velocity and range simultaneously, is pitched as a differentiator for complex, dynamic environments.

Advisors on the transaction include Morgan Stanley acting as financial advisor to Aeva, with legal counsel reported for both sides. For the market, the deal signals continuing institutional appetite for deep-tech hardware players when backed by clear commercial traction. The next 12–24 months will show whether the new capital materially accelerates Aeva’s deployments and margin profile as LiDAR systems move from pilot projects into production-scale supply agreements.