Grant Harvey, the Media Relations Manager for CrowdfundX, told AutoblogGreen that if Elio hits its $25-million goal, it "will be the highest grossing equity crowdfunding campaign. Elio is about to make history."
Founded in 2008, Elio is making a three-wheeled vehicle that it says will get 84 miles per gallon and will be priced at just $6,800. So far, the company has taken almost 45,000 reservations for the trike. The vehicle boasts a 0.9-liter, three-cylinder engine that the company says can take the car to more than 100 miles per hour for those crazy enough to give it a try.
Elio says it was able to start the crowdfunding effort because of rules US regulators put into place earlier this year that loosened regulations for private companies looking to raise no more than $50 million from accredited and non-accredited investors.
Elio is partnering with manufacturer Comau to make its cars at a factory in Shreveport, LA that it purchased in 2013 and where it plans to employ about 1,500 people. The plant was previously operated by General Motors. Elio has set a 2016 date for building its first cars for the public.
Elio's vehicle reservations are about double what they were a year ago. Last year, Elio took a prototype on the road to show it off in 33 cities and we caught up with the tour at the New York Auto Show earlier this year. We've also got Elio Motors' press release below.
2012 JOBS Act Regulation A+ Allows Non-Accredited Investors to Buy in to Private Companies
TROY, Mich., July 8, 2015 /PRNewswire/ -- Elio Motors today announced it is off to a record-setting pace for its disclosed equity crowdfunding campaign, with more than $16 million in expressed non-binding interest from nearly 5,000 potential investors in just 19 days. Elio Motors' goal is to raise $25 million through the campaign.
Elio Motors launched the crowdfunding initiative on June 19 and has averaged nearly $1 million in expressed non-binding interest each day. Capital raised will help fund the 2016 launch of its three-wheel, enclosed vehicle that is expected to sell for $6,800 and get up to 84 MPG. The innovative funding strategy, made possible by recent changes to the 2012 JumpStart Our Business Start-up (JOBS) Act, was the perfect fit for a company that looks to innovate in every aspect of its operations.
"We're always looking for new ways to do things and crowdfunding is certainly the wave of the future for entrepreneurs, start-up organizations and investors," said Paul Elio, founder and CEO of Elio Motors. "With so many people expressing interest in our vehicle and our company, it shows we are on the right track – both in how we have developed and marketed this vehicle and also in how we are raising the capital needed to continue our march toward production."
Elio sees crowdfunding to raise capital for the company as a natural evolution of its grass-roots based strategy. The company has already taken nearly 45,000 reservations for a spot in line to purchase a vehicle and routinely has people lined up around the block to see the vehicle at its tour stops across the country.
The crowdfunding opportunity was made possible in March of 2015, when the U.S. Securities and Exchange Commission (SEC) enacted rules to implement Title IV of the JOBS Act, paving the way for private companies to raise up to $50 million from both accredited and non-accredited investors. This new set of rules is known as "Regulation A+."
Elio Motors will use funds from this initiative to build an additional 25 prototypes for testing and validation. In March, the company launched an investment opportunity based on Rule 506(c) of Regulation D, which allows companies to offer shares to accredited investors. Funds from that initiative allowed Elio Motors to begin building its fifth generation prototype, the P5. The P5 will feature an engine developed by IAV specifically for the Elio and also will feature a production level transmission from Aisin.
Individuals interested in learning more about the Elio Motors investment opportunity can go to StartEngine.com - https://www.startengine.com/startup/elio-motors - the crowdfunding website launched in June by business incubator Start Engine.
"We launched the StartEngine.com platform with companies like Elio Motors in mind," said Ron Miller, Start Engine partner. "The quick and deep interest in Elio Motors tells us two things. One, crowdfunding is poised to become an important tool for entrepreneurs and investors alike. Two, investors are looking for ways to find companies with visionary businesses such as Elio Motors. StartEngine.com is a great way to bring them together."
Not only have investors expressed interest in Elio Motors, potential customers have as well. Nearly 45,000 people have made reservations for spot in line to purchase a vehicle. When the Elio goes to market, it will create 1,500 jobs at its Shreveport, Louisiana facility. In addition, the Elio will use 90 percent North American content, creating another 1,500 jobs at its supplier partner companies. These manufacturing jobs will in turn create approximately 18,000 indirect jobs across the country.
About Elio Motors
Founded by car enthusiast Paul Elio in 2008, Elio Motors Inc. represents a revolutionary approach to manufacturing an ultra-high-mileage vehicle. The three-wheeled Elio is engineered to attain a highway mileage rating of up to 84 mpg while providing the comfort of amenities such as power windows, power door lock and air conditioning, accompanied by the safety of multiple air bags and an aerodynamic, enclosed vehicle body. Elio's first manufacturing site will be in Shreveport, Louisiana. For more information, visit www.eliomotors.com or www.facebook.com/ElioMotors.
**No money or other consideration is being solicited at this time, and if sent in to Elio Motors or StartEngine, will not be accepted. No offer to buy securities of Elio Motors can be accepted and no part of the purchase price can be received until Elio Motor's offering statement is qualified. Any such offer to buy securities may be withdrawn or revoked, without obligation or commitment of any kind, at any time before notice of its acceptance is given after the qualification date. Any indications of interest in Elio Motor's offering involves no obligation or commitment of any kind.**