Elio Motors’s equity crowdfunding campaign has attracted more than $ 21 million in expressed non-binding interest from nearly 5,000 potential investors in 19 days. (Earlier post.) Elio Motors’ goal is to raise $25 million through the campaign/
Elio Motors launched the crowdfunding initiative on 19 June and has averaged nearly $1 million in expressed non-binding interest each day. Capital raised will help fund the 2016 launch of its three-wheel, enclosed vehicle that Elio expects to sell for $6,800.
The crowdfunding opportunity was made possible in March 2015, when the US Securities and Exchange Commission (SEC) enacted rules to implement Title IV of the JOBS Act, paving the way for private companies to raise up to $50 million from both accredited and non-accredited investors. This new set of rules is known as “Regulation A+.”
Elio Motors will use funds from this initiative to build an additional 25 prototypes for testing and validation. In March, the company launched an investment opportunity based on Rule 506(c) of Regulation D, which allows companies to offer shares to accredited investors. Funds from that initiative allowed Elio Motors to begin building its fifth generation prototype, the P5. The P5 will feature an engine developed by IAV specifically for the Elio and also will feature a production level transmission from Aisin.
Nearly 45,000 people have made reservations to purchase one of the vehicles, which Elio says will deliver up to 84 mpg US.