First, the trike will not have a locked-in audio component. Instead, Elio will work with MTX to develop a modular audio system that can be easily replaced. "We're committed to not integrating electronics into the vehicle," Elio said during a press conference. "If you have a well-made vehicle, the electronics on board the day you buy it will be obsolete before it gets off the road. How many cars are out there driving around with cassette players, right?" More details on the audio system will be coming later.
Second, Elio said that his company is going to shut down its Regulation A+ stock offering on February 1. This move paves the way for Elio to go public. "I believe we are the first company to go through the whole process of test-the-waters, take Reg A+ investments, and then list publicly," he said. "So we're very excited about that and about becoming a public company." Elio will be listed on OTCQX "soon."
In other Elio news:
- Elio said that his company is working with the federal government to create a new category for enclosed three-wheeled vehicles, called autocycles. While Elio has had some success in getting regulations passed in some states that would allow you to drive the trike (currently technically considered a motorcycle in most areas) without a motorcycle license or a helmet, a federal rule would make it simpler to own and drive an Elio anywhere in the US.
- Speaking of US availability, Elio explained how his network of company-owned stores (think Tesla) will be able to quickly supply vehicles across the country. The trikes will have some features that come standard (power windows, a radio, air conditioning, power windows) but pretty much anything else will be bespoke. "The process is, you come into our showroom and say you want the red automatic with the leather seat and the blind-spot detection mirrors. That goes off to one of our seven marshaling centers. We close our stores at 9 p.m. and we build our vehicles until midnight, so we have three hours to clear the system. At midnight, those vehicles go on trucks and with seven marshaling centers, we're within nine hours of all of our stores. So, theoretically, at 10 a.m. the next day, you get the vehicle exactly the way you wanted it the day before, no matter what time you came into the showroom."
- The first E-Series vehicles will be built soon. Those are the engineering and testing prototype vehicles that are needed after five P (prototype) series vehicles were made.
Vehicles Financed by Unique Crowd-Funded Stock Sale Made Possible by Regulation A+ of the 2012 Jumpstart Our Business Startup (JOBS) Act
DETROIT, Jan. 12, 2016 /PRNewswire/ -- Elio Motors today announced it has taken another major step forward by beginning the production process for its E-Series of engineering and testing prototype vehicles.
The E-Series will be used for safety testing, durability testing and wind tunnel testing, to name a few. This will allow Elio Motors and its supplier engineering teams to make final adjustments for manufacturability, safety and aerodynamics, all critical steps in developing a vehicle that will meet and exceed customer expectations.
Elio Motors has developed an enclosed three-wheeled vehicle that has a targeted base price of $6,800 and will get up to 84 MPG. The company has a late 2016-targeted production date.
"The E-Series prototypes are where we get down to some of the most critical details in the development and manufacturing process," said Paul Elio, founder and CEO of Elio Motors. "It can be a somewhat arduous process, but as an engineer, it will be one of the most interesting legs of our journey to production. For our customers and fans, this is a tangible sign of our ongoing progress and momentum. Elio Motors and our supplier companies are thrilled to be at this stage of development as we move closer to our final vehicle design."
The E-Series vehicles will be developed at Technosports Creative in Livonia, Mich., the same company that built Elio Motors P5 prototype vehicle that will be on display January 16 – 24, 2016 at the North American International Auto Show. Currently, Elio Motors and Technosports are determining what components are needed for which tests. Once the build and test sequence has been optimized, Technosports will begin hand-building individual E-Series prototypes.
As various tests are completed, the company will compile data about what adjustments need to be made in the vehicle design and on the production line. This will help determine the company's final tooling needs.
The E-Series will be funded by Elio Motors' current crowd-funded stock offering, which was made possible by Regulation A+ mandated by the 2012 Jumpstart Our Business Startup (JOBS) Act.
"Regulation A+ has been an incredible boost to entrepreneurs in the United States, as it provides easier access to potential investors," Elio said. "Funding has been our biggest challenge to date, but Regulation A+ paved the way for our current stock offering. We are one of the first companies to put this new funding model to the test, and the E-Series will be a result of this effort."
In March 2015, the Securities and Exchange Commission finalized rules under Title IV of the JOBS Act to amend Regulation A, facilitating the way for private companies to raise up to $50 million from non-accredited investors."
Non-accredited investors have annual incomes of less than $200,000 for individuals or less than $300,000 for married couples and net worth under $1 million, excluding their primary residence. Historically, non-accredited investors have been left on the sidelines for many investment opportunities, such as Initial Public Offerings and venture capital. Regulation A+ opens more investment opportunities for everyday people.
Since Nov. 20, 2015, Elio Motors has offered stock to the general public, including non-accredited investors. Anyone interested in learning about the company and making an investment can go to www.startengine.com and click on the Elio Motors icon to start the process.
Elio Motors will produce the vehicle in Shreveport, La., at a former General Motors production facility. The company estimates upwards of 1,500 will be directly employed at Elio Motors' Shreveport, Louisiana production facility. In addition, the Elio will use 90 percent North American content and create an additional 1,500 jobs from the supply base, Elio Motors corporate, as well as sales and service once full production is underway. Plus, approximately 18,000 indirect jobs nationwide are projected to be created or sustained.
Elio Motors' Sound System to be Assembled in the USA
Personal Mobile Audio System to be assembled by MTX Audio
DETROIT, Jan. 12, 2016 /PRNewswire/ -- Elio Motors, today announced that its personal mobile audio system will be assembled in the United States by MTX Audio, which has production facilities in Illinois, Arizona, Texas and Wisconsin. The specific facility that will assemble the audio system is yet to be determined.
Elio Motors is developing an enclosed three-wheeled vehicle with a targeted base price of $6,800 that will get up to 84 MPG.
"It is rare in today's auto industry to find an audio system that's assembled here in the United States, and we are thrilled that MTX Audio has committed to making our system at their Phoenix location," said Paul Elio, founder and CEO of Elio Motors. "This is another step in our ongoing effort to build the Elio with at least 90-percent North American content, creating even more jobs here."
Elio Motors introduced the revolutionary audio system at the Specialty Equipment Market Association (SEMA) Show in November 2015. The audio system, designed in Phoenix, Arizona for Elio Motors by MTX Audio, will offer consumers flexibility and future-proof technology, allowing Elio vehicle owners to easily upgrade their system.
MTX Audio will provide the vehicle's audio system in several trim levels. The system will be modular, making it easy to upgrade and add features that tailor the system's sound qualities and capabilities, based on customer preferences. MTX Audio's expertise in developing integrated sound components for the power sports and motorcycle markets, especially its ability to design in flexibility and utilize unique packaging, were among the reasons it was selected as a supplier partner with Elio Motors. In addition to its work with Elio Motors, MTX Audio has designed and manufactured audio systems for Chevrolet, Harley-Davidson, and Polaris.
The system is designed to be easily configurable, based on the listener's tastes. If the listener likes pristine clarity or if they want a deeper, booming bass within the vehicle, it will be easy to modify. The owner, in effect, will be able to custom design his or her sound.
"We've designed the audio system to be interchangeable so customers can always upgrade to the latest and greatest technology" Elio said. "Audio technology changes faster than vehicle design and we want our customers to have the flexibility to remain current."
Elio Motors will produce the vehicle in Shreveport, La., at a former General Motors production facility. The company estimates upwards of 1,500 will be directly employed at Elio Motors' Shreveport, Louisiana production facility. In addition, the Elio will use 90-percent North American content and create approximately 1,500 additional jobs from the supply base, Elio Motors corporate, as well as sales and service once full production is underway. Plus, approximately 18,000 indirect jobs nationwide are projected to be created or sustained.
Elio Motors surpasses goal, Regulation A+ Stock Offering to close on Feb. 1
Stock offering exceeds $12.6 million goal needed to fund engineering and testing prototype E-Series vehicles, stock offering has raised nearly $16 million to date
DETROIT, Jan. 12, 2016 /PRNewswire/ -- Investors interested in purchasing shares of revolutionary transportation startup Elio Motors have less than three weeks left to make an investment through the company's current Regulation A+ stock offering. The company has raised nearly $16 million to date from this offering, which will fund development of its E-Series engineering and testing prototypes.
Shares in Elio Motors will soon become eligible to be traded on the OTCQX, the top tier of the three marketplaces for trading over-the-counter stocks provided and operated by the OTC Markets Group. This will provide liquidity for investors who purchase stock through the Regulation A+ offering.
Elio Motors will close out the current Regulation A+ stock offering on Feb. 1, 2016, as one of the steps needed to allow for OTCQX trading.
Elio Motors, which is developing an enclosed three-wheeled vehicle with a targeted base price of $6,800 that will get up to 84 MPG, filed with the Securities and Exchange Commission (SEC) to seek up to $25 million, with its primary goal to fund the E-Series. Investors can purchase remaining Regulation A+ shares by going to www.startengine.com.
"Fan reaction to this vehicle has been extraordinary, as we have nearly 50,000 people who have put down their hard earned money for a place in line and said 'I want one'," said company founder and CEO Paul Elio. "How many other vehicles have built that much enthusiasm before production? Few, if any. This vehicle has struck a chord with the American public, and this stock offering has helped us get to an important phase in our development."
In March 2015, the SEC finalized rules under Title IV of the 2012 Jump Start Our Business Start-up (JOBS) Act, that paved the way for private companies to raise up to $50 million from non-accredited investors. This ruling is known as "Regulation A+." Elio Motors launched a formal stock offering on Nov. 20 after receiving qualification from the SEC to seek up to $25 million.
Elio Motors, which is aiming for a late 2016 production launch, announced at the North American International Auto Show in Detroit today that it has begun work on the E-Series prototypes.
"We are building a product that makes a positive impact on the world, in a variety of ways," Elio said. "The Elio will create jobs, provide low-cost transportation and help wean our country off of oil dependence. We are on a mission to get to production so we can begin to make a significant impact."
Elio Motors will produce the vehicle in Shreveport, Louisiana, at a former General Motors production facility. The company estimates upwards of 1,500 will be directly employed at Elio Motors' Shreveport production facility. In addition, the goal of the Elio is to use up to 90 percent North American content and create an additional 1,500 jobs from the supply base, Elio Motors corporate, as well as sales and service once full production is underway. Plus, approximately 18,000 indirect jobs nationwide are projected to be created or sustained.
About Elio Motors
Founded by car enthusiast Paul Elio in 2009, 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.
The securities offered hereby are highly speculative. Investing in shares of Elio Motors, Inc. involves significant risks. This investment is suitable only for persons who can afford to lose their entire investment. Furthermore, investors must understand that such investment could be illiquid for an indefinite period of time. No public market currently exists for the securities, and if a public market develops following this offering, it may not continue. To obtain a copy of the Offering Circular, go to http://www.eliomotors.com/equity or click here to download directly.