If you thought three wheel cars were a thing of the past, think again; yesterday, Elio Motors reached their $25 million crowdfunding goal on StartEngine for their modern, eco-friendly trike.
Unlike most platforms, crowdfunding on StartEngine isn’t all-or-nothing and the contract between Elio and their investors isn’t binding. It utilises new “Regulation A+” rules under the American 2012 JumpStart Our Business Start-up (JOBS) Act, which paves the way for private companies to raise up to $50 million from non-accredited investors. Regulation A+’s Tier 2 allows companies a period to “Test The Waters” during which they can communicate with potential investors. There is no obligation by either party to take part in a transaction.
The vehicle has already had plenty of interest, with more than 43,000 people reserving a place in line to purchase a vehicle – and its no wonder. The three-wheel vehicles will be made in America with 90% American content, will use around 84mpg and have excellent safety features, including an inforced roll-cage frame, Anti-Lock Braking System, and 50% larger crush zones than similar vehicles. The colours are nattily named, with choices such as Marshmallow, Red Hot, Rocket Silver, Sour Apple, Licorice – and to top it all off, Elio will be pricing the cars at just $6,800.
The company website makes its benefits very clear:
In a statement, Elio Motors CEO Paul Elio said that the $25 million is, “just the beginning as we race toward our 2016 goal of mass production. He continued, “overall, we are extremely pleased with the initial support of our crowdfunding initiative and will continue to take additional expressions of interest while working with the SEC on next steps.”
The company website makes its benefits very clear:
“For students the vehicle would offer a safe and reliable means to move around campus. It would allow families with minivans and SUV’s to add an economical commuter vehicle to the driveway. For pure enthusiasts, it would deliver on flat out fun – with a potential for customizing as unlimited as imagination itself. Paul Elio envisioned a vehicle that’s truly for everybody, and its inflation-defying $6,800, sticker price ensures that nobody
will be left out.”
It’s hard not to be impressed by this new vehicle, and it’s easy to see why so many people were willing to express an interest. However, the car is currently still in production; it will be interesting to see how the markets react when – or is – it goes on sale.