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(photo illustration; original by Balansboy)
Elio Motors announced earlier this week that it has received “non-binding indications of interest” valued over $25MM through its initial crowdfunding campaign on StartEngine. To date, the company has received $25,436,650 from 6,773 people, averaging $3,755 per person, and will continue to take additional expressions of interest while working with the SEC on next steps. It will eventually proceed with filing an offering statement and will begin to make a formal stock offer to interested investors after approval.
The Arizona-based company will partner with Fiat subsidiary, Comau, to build its three wheeled vehicles that are expected to retail for $6,800 and achieve up to 84 MPG at a former General Motors factory located in Shreveport, LA. Elio plans to employ around 1,500 people and will start building the cars for the public in 2016. Over 43,000 reservations for the vehicle have been made so far.
Elio’s crowdfunding campaign was made possible on June 19, when Reg A+ of the JOBS Act Title IV went into effect, enabling private companies to raise capital [4] of up to $50 million from both accredited and non-accredited investors. The company, however, ran into issues [5] during its campaign when it started noticing several potential investors it deemed suspect based on newly created email addresses and dollar amounts.
The unconventional design of the vehicle places it under the US government’s motorcycle classification, and even though the company has successfully lobbied in most states to alter regulations that would otherwise require drivers to wear a helmet, you’d still need to wear one in Nebraska, Missouri, Mississippi, West Virginia, and North Carolina – mainly because those states want you to look even more ridiculous while straining the car’s three-cylinder, 55 HP engine down the highway.
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