The ultra-frugal three-wheeler costs $7,300, up from the previous $6,800 sticker.
Elio Motors has announced a starting price of $7,300 MSRP for holders of non-refundable reservations which represent more than 85 percent of all 56,000+ orders received in total by the company. Those who have a refundable reservation can make the switch to a non-refundable one and lock in the base price for the high-MPG vehicle which originally was supposed to cost about $6,800.
It is important to mention the new $7,300 base price is applicable for up to 65,000 cars, so at the moment of writing there is still room for around 9,000 more people to lock in the starting price of the 84-mpg vehicle. Elio Motors has a $300 incentive (lowering the price to $7,000) for both current and future customers willing to sign a binding agreement to buy the car, but keep in mind this one too is available only for non-refundable deposits until 65,000 total reservations.
We checked the company’s website and discovered there are exactly 56,411 total reservations at this point. It means that in order to take advantage of the locked-in price, you’ll have to be among the remaining 8,589 people to make a non-refundable deposit, and sign the aforementioned binding agreement to get the $300 discount.
Production of the car is scheduled to begin in 2017 at a factory in Shreveport, Louisiana where Elio Motors will directly employ up to 1,500 people, with a further 1,500 from the supply base and around 18,000 indirect jobs across the country. The company has established an annual production target of 250,000 units, and to get there, it has applied for an Advanced Technology Vehicles Manufacturing (ATVM) loan program worth $185 million from the U.S. Department of Energy (DOE).
Source: Elio Motors
Gallery: Elio P5 prototype
Elio Motors Locks In Its Price
Over the last few months, progress has been accelerating. We have shared several major milestones that we have achieved recently including publicly listing our stock, launching our 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. As we move closer to production, our financial team is working diligently to secure the next round of funding that will help us put Elio vehicles on the road.
As we have discussed both publicly and in our filings, we are pursuing multiple sources to help us fund each step, one of which is the Advanced Technology Vehicles Manufacturing (ATVM) loan program from the U.S. Department of Energy (DOE). We believe that Elio Motors is a perfect fit for this program based on the government’s own stated mission.
According to the U.S. Department of Energy Loan Programs Office (LPO),
“The mission of LPO is to accelerate the domestic commercial deployment of innovative and advanced clean energy technologies at a scale sufficient to contribute meaningfully to the achievement of our national clean energy objectives – including job creation; reducing dependency on foreign oil; improving our environmental legacy; and enhancing American competitiveness in the global economy of the 21st century.”
As you can see, Elio Motors is an ideal candidate for these loan programs:
- Elio Motors is a Job Creator – Upwards of 1,500 manufacturing jobs are estimated to be directly employed at the Elio Motors Shreveport manufacturing facility plus an additional 1,500 from the supply base, Elio Motors corporate, sales, and service once full production is underway, plus approximately 18,000 indirect jobs nationwide are projected to be created or sustained.
- Elio Motors Reduces Dependency on Foreign Oil – By year 5 of projected production, total U.S. fuel consumption and emissions can be reduced by over .35%, which will have a significant impact on our demand for foreign oil.
- Elio Motors Improves our Environmental Legacy – Whether you want to reduce dependence on foreign oil or lessen our impact on the environment, they both require less oil. At up to 84 MPG, the Elio represents a fuel mileage more than three times that of the American fleet.
- Elio Motors Enhances American Competitiveness – The Elio was created in Phoenix, designed in Detroit, and will be manufactured in Shreveport, LA. When Elio Motors reaches its target production of 250,000 units per year, it will have a significant impact on the trade deficit, the economy, and the status of the American automotive industry.
As part of the final steps of the evaluation of our application for the ATVM loan, the U.S. DOE requires that Elio Motors demonstrate market acceptance for our project in order to provide a level of certainty about our long-term viability. Although we have received overwhelming market support from our fans, with more than 56,000 total reservations and over 85% of those “non-refundable,” according to the ATVM’s new guidelines published June 2016, that is not enough to demonstrate market acceptance:
“Where a start-up company that has not generated revenue seeks to commence or progress operations, … in all but the most extraordinary circumstances, market studies and non-binding customer reservations to purchase vehicles will not be sufficient…” [Emphasis added].
We believe we have created an “extraordinary” circumstance in the demand for our vehicle, between our crowdfunding and sales of shares through Regulation A+; however, we will take the necessary additional steps to strengthen our qualifications for this loan program. Because of these requirements, we must ask for binding commitments to purchase from our “non-refundable” reservation holders to further validate our market acceptance. And to obtain these binding commitments, we must lock in a price for the vehicle for “non-refundable” reservations.
Locking in the Price for Non-Refundable Reservation Holders, $7,300*
Based on our current engineering models and materials calculations at this juncture, we will lock in the base price for “non-refundable” reservation holders at $7,300* until we reach 65,000 total reservations (all reservations, both non-refundable and refundable). Given the current expectations, this price supports our vision and provides the most affordable vehicle option on the market.
Added Incentive for Binding Agreements, $7,000*
As an added incentive, and to further demonstrate our market acceptance, Elio Motors will offer a reduced base price of $7,000* for “non-refundable” reservation holders who make a binding commitment to purchase the vehicle, a savings of $300.
Until we reach 65,000 total reservations, “non-refundable” reservation holders will receive the following:
- Locked Price: $7,300* for a base model vehicle for “non-refundable” reservation holders, until we reach 65,000 total reservations. No action required if you currently have a “non-refundable” reservation.
- Special Incentive to obtain Lower $7,000* Locked Price: Until we reach 65,000 total reservations, an added incentive for “non-refundable” reservation holders will be a locked price of $7,000* for a base model vehicle for “non-refundable” reservation holders that make a binding commitment to purchase.
- Action required: To complete this process, please click here for All In “non- refundable” reservations.
If you are a “refundable” reservation holder, your reservation remains unchanged. If you would like to convert your reservation to a “non-refundable” reservation and lock in the price, click here.
As I have previously shared, the ATVM program is not a breaking point for Elio Motors. However, based on our projected impact on the market and the economy, it is a program that we believe was custom designed for a company like ours. Therefore, our hope is that the implementation of the above steps will satisfy the recently revised ATVM requirements, resulting in Elio Motors being awarded an ATVM loan.
The entire Elio Motors team wants to thank you for your continued faith and support in our project. This is an exciting time in our history and we are grateful to have passionate fans like you along for the ride.
*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.