From an original pre-order price of $6,800, Elio Motors has raised the value of its groundbreaking three-wheeled autocycle to $7,000. The $200 increase also comes with a binding or lock-in commitment that would not allow the prospective buyer to change his or her mind about buying the vehicle.
Elio Motors still does not have a fixed delivery date for its autocycle although previous reports had said that it will come out in the fourth quarter of this year.
With the so-called binding commitment, those who have placed pre-order on the autocycle and shelled out $7,000 can no longer refund their money regardless whether the vehicle comes out on the market as scheduled later this year or not.
Thus, it has bred speculations in the industry that the release of the autocycle may not happen in the fourth quarter of this year after all but at a much later time.
Apart from its very competitive price, the autocycle boasts of achieving a fuel efficiency of 84 mpg.
The independent carmaker is able to raise $25 million from crowdfunding to bankroll the production of its three-wheeled two-seater, reports Tech Times.
A second pricing tier
There is also a second pricing tier that Elio Motors is offering for the autocycle, which the carmaker calls officially as the E1A. It is also non-refundable and several hundreds of dollars more expensive than the first tier offer.
However, while the deposit is non-refundable, it does not contractually bind the customer like the first offer.
The price difference of $300 comes off as an incentive basically for the first offer. But those who will opt to take the second tier offer need to sign a form confirming that they will purchase the vehicle regardless of when it will officially come out on the market.
But both offers will only be valid once reservations figure for the company’s E1A reaches the 65,000 mark. As of August 16, there are 56,823 pre-orders made on the autocycle as indicated on the company’s website. This means that the company still needs more than 8,000 additional pre-orders for the two offers to take effect officially.
Paul Elio, founder and CEO of Elio Motors, explained that based on the company’s current engineering, models and materials calculations need to be given a base price for non-refundable reservation holders at $7,300 until they reach 65,000 total reservations.
He added that given the current expectations, the price supports the company’s vision and provides the most affordable vehicle option in the market.
An innovation loan
Apparently, the increase in the pre-order price of the autocycle has something to do with Elio Motors’ bid to strengthen its position for a possible Department of Energy innovation loan.
The goal of the pre-order incentive that they are giving to prospective buyers of the E1A is to demonstrate market acceptance and bolster Elio’s application for the DOE’s Advanced Technology Vehicle Manufacturing Program, notes Fortune.
Back in 2010, American electric carmaker Tesla Motors was able to secure from the DOE an innovation loan amounting to $365 million. Back then, Tesla projected that the base price of its Model S would be about $49,000 but it came out in the market with a retail price of $70,000.
It is the same program that has been utilized by American carmaker Ford Motor Corporation and Nissan Motors of Japan.
There are also reports saying that Elio Motors is starting to be worry because their autocycle might be classified as a motorcycle for regulatory purposes. When that happens, drivers would not only need a separate motorcycle license to drive it, they would have to wear helmets in many cities or locales as well.
Elio Motors is determined to finally put into production its three-wheeled vehicle. The company has forged a partnership with Canadian company Linamar Corporation to produce the engines of its groundbreaking three-wheeled vehicle, which is being positioned by Elio Motors founder and chief executive officer as a high mileage and low-cost eco-trike for years.
i was unable to convert my refundable reservation to binding. the like would not respond. is there a number to call to convert?