Elio Motors is one of the first companies to take advantage of the new rules under Regulation A+ which went into effect on June 19th. The new rules allow companies considering to raise capital under Reg A+ to “test the waters” to see if investors are interested. Elio, an automotive venture for an affordable, 3-wheel vehicle, set a goal of generating $25 Million in indicated interest and as of this week – they have topped this amount with 6662 reservations (as it stands now). Company representatives stated that Elio will continue to accept interest in the potential offer. While these are not binding commitments the level of interest bodes well for a future issuance of equity in the company.
Once Elio does raise the needed capital, the company expects to launch its vehicle in 2016. A former GM plant in Louisiana has been selected to manufacture these vehicles that claim 84 MPG and a price of just under $7K. The company states there have been over 45,000 reservations for the first Elio’s produced off the assembly line.
“Elio Motors is a revolutionary company in every way – making an affordable, environmentally friendly vehicle that creates American jobs,” said Elio. “Equity crowdfunding is an innovative funding strategy that’s making a big difference for our company and will make a huge impact for startups like ours, all around North America.”
The offer listed on LA based StartEngine is open to non-accredited investors. This means you do not have to hit certain wealth thresholds to review and commit to the share offer. Earlier this year, Elio launched a Regulation D, 506(c) offer. This capital round was said to be designated towards building its 5th generation P5 prototype.
Elio was founded in 2008. The company plans to open up retail centers similar to potential competitor Tesla.
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