Dubuc Motors, creators of the “scissor door” electric sports car the Tomahawk, has launched a “Testing the Waters” (TTW) campaign on StartEngine seeking indications of interest for $25 million under Regulation A+. Launched in Quebec, Dubuc Motors is now incorporated in the US with offices in Menlo Park, California and Newark, Deleware. The company is the second car manufacturer to potentially raise capital on StartEngine following the footsteps of Elio Motors – an offer that is expected to close on February 1st. The additional funding for Dubuc will help bring the young car company from prototype to production – in a few short years.
While the Tomahawk is following the trail of Elio, that is where the similarities end. While Elio has targeted a budget oriented commuter consumer, Dubuc is a high end, electric sports car that promises impressive specs. Expected to go into production in 2017, the Tomahawk is said to go from 0 to 60mph in just 3 seconds. The top speed should hit 160 MPH with a battery range of 300 miles. The all wheel drive, 2+2 is described as “roomy” and able to accommodate “big & tall” types (think professional sports athletes). While you cannot purchase a Tomahawk now, you may add your name to the reservation list for $5000. The car is expected to retail for $110,000.
— Dubuc Motors (@DubucMotors) January 24, 2016
Last Friday, on the eve of the launch on StartEngine, CEO and founder Marc Dubuc explained their decision to the Financial Post to head south and raise capital using equity crowdfunding;
“Nobody wanted to invest in cars in Quebec. We wanted to prove that our technology was different and we could make it.”
For the past 2 years, Dubuc has searched for financing in his home country;
“All the time it was ‘no’ and closed doors. When I started everybody thought that I was a fool because nobody was making cars in Quebec.”
Dubuc drew a parallel to the experience of billion Elon Musk. He too was unable to raise early funding from VCs. Many early stage investors are driven by expectations of a profitable and quick early exit. The electric sports car vehicle business is more marathon than sprint.
Dubuc hopes to raise $15 million for a 10% stake in the company. If they are successful, they hope to sell 200 cars in 2017. They would like to scale to 1500 cars a year. Dubuc states the premium car market is $135 billion a year business. They believe that by 2022 demand for electric vehicles will exceed 35 million units as a growing number of consumers move over from petrol to batteries.
Under Regulation A+ anyone, regardless of income or wealth, may purchase shares in the company. Registering an indication of interest is a non-binding statement but Dubuc will use the TTW campaign to decide on next steps. If the TTW campaign is successful expect a filing by the company to be submitted to the SEC.
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