PHOENIX, Aug. 12, 2016 /PRNewswire/ -- Elio Motors (OTCQX:ELIO), the start-up vehicle manufacturer planning to launch a three-wheel vehicle that will get up to 84 mpg, today announced it is establishing a vehicle purchase base price of $7,300* for its non-refundable reservation holders until the company reaches 65,000 total reservations.
Elio Motors aims to disrupt the American transportation industry with its low-cost, highly fuel efficient vehicle, much like Volkswagen did with the Beetle in 1968. The Beetle's $1,699 sticker price from 1968 is $11,767.92 in 2016 dollars.
"Volkswagen entered the market in 1968 with an extraordinary vehicle at an incredible price and shook up the industry," said Elio Motors Founder and CEO, Paul Elio. "We are on the path to launching an extraordinary vehicle, as well, but are setting an even more aggressive and affordable price, and doing so in a way that will create American jobs, reduce our dependence on foreign oil, be better for the environment and strengthen American manufacturing."
Establishing a base price will allow the company's non-refundable reservation holders to lock in their purchase price until the company reaches 65,000 total reservations. It also allows Elio Motors to accept binding purchase commitments from non-refundable reservation holders.
Revised guidelines recently published by the Department of Energy (DOE) in June 2016 now specify that start-up companies need to further demonstrate market acceptance through firm sales commitments. "We have developed more than $350 million in pre-production sales with over 56,000 reservations, with the vast majority being non-refundable," said Elio.
Because Elio Motors has applied for a $185 million Advanced Technology Vehicles Manufacturing (ATVM) loan from the DOE, the company is now seeking the necessary binding purchase commitments to meet the recent change in loan criteria. As an extra incentive for the non-refundable reservation holders, the company will lock in the vehicle price at an even lower $7,000* base price for those that make a binding commitment to purchase within the first 65,000 reservations.
"We applaud the DOE's recent ATVM guidelines, as it raises the bar for companies like Elio Motors," Elio said. "Anything that makes us work harder to strengthen our company is ultimately going to be good for our future customers, our team members, our shareholders and the communities where we build, sell and service the Elio."
Over the past several months, Elio Motors' progress toward production has been accelerating. Among milestones that the company has achieved recently:
- Raising nearly $17 million through a Regulation A+ stock offering
- Publicly listing its stock on the OTCQX;
- Raised over $20 million in rewards crowdfunding selling place in line reservations
- Launching its innovative new ePlus mass personalization system, and
- Unveiling the E1A, the first in a series of engineering vehicles utilized for final testing and validation purposes.
"We have always taken extraordinary positive measures to do whatever it takes to move our company forward, utilizing policies such as Regulation A+, or loan programs such as the ATVM," Elio said. "Both of these tools have been put in place through government and private sector collaboration. The legislators who have put these programs in motion are creating an atmosphere where innovative companies can flourish and move our economy forward."
Elio Motors offers reservations of $100, $250, $500 and $1,000. There are two types of reservations -- non-refundable and refundable. As an added incentive for non-refundable reservations, a limited time 25 percent bonus on their reservation will be applied to the purchase of their Elio. For example, if someone puts $1,000 down today, they will receive an additional $250 toward their Elio at the time of purchase. Currently, the company has over 56,000 reservations total.
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-wheel 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, cruise control 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, La.
Certain statements in this press release including, but not limited to, statements related to anticipated commencement of commercial production, targeted pricing and performance goals, and statements that otherwise relate to future periods are forward-looking statements. These statements involve risks and uncertainties, which are described in more detail in the Company's periodic reports filed with the SEC, specifically the most recent reports which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. Forward-looking statements are made and based on information available to the Company on the date of this press release. Elio Motors assumes no obligation to update the information in this press release.
*MSRP for non-refundable reservations only and applies only until non-refundable and refundable reservations total 65,000. Total current reservations can be seen at: https://www.eliomotors.com/. MSRP excludes destination/delivery charges, taxes, title, registration, and options/installation.
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SOURCE Elio Motors