News Release – Elio Motors Plans to Sell 100 Pre-Production Vehicles Built at its Shreveport Manufacturing Facility. Vehicles are Key Step To Refining Final Consumer Production Projected to Begin in 2017.

March 11, 2016

PHOENIX, March 11, 2016 /PRNewswire/ — Elio Motors, Inc. (OTCQX: ELIO), the startup vehicle manufacturer planning to launch a three-wheeled vehicle that will get up to 84 MPG with a targeted base price of $6,800, today announced it plans to sell 100 pre-production vehicles built at its Shreveport, Louisiana, production facility fourth quarter of 2016.

“Elio Motors is ecstatic to announce that we are taking a major step forward in our development of the Elio,” said Elio Motors founder and CEO Paul Elio. “We now intend to sell the first 100 pre-production vehicles built to one or more fleet customers, rather than use them for internal purposes as previously disclosed in our offering statement filed with the Securities and Exchange Commission. This will help us generate additional revenue, it will allow us to evaluate vehicles under real-world driving conditions and it will allow our supplier team to refine our design.”

This limited run of pre-production vehicles will be a major step forward for Elio Motors as it works toward mass production. The pre-production vehicles will allow Roush, which was named lead engineering partner earlier this week, to provide a quieter, smoother vehicle with refined driving characteristics. Ultimately, this will raise customer satisfaction with the final production vehicle.

“We are chomping at the bit to get started on these 100 vehicles, as it’s an important step in our evolution,”said Gino Raffin, vice president of manufacturing for Elio Motors. “The work we do on these vehicles will provide important insight that will make for a smooth transition when we begin hiring production workers for the consumer vehicle launch. We’re getting closer every day and we are moving forward with relentless passion to get this done.”

Although the fleet vehicle build is a step in the right direction for the end consumer driving experience, the bulk of the consumer launch will have to be moved into 2017 at a date to be determined, as the company continues to seek additional funding.

“As we have stated in the past, building an ultra-low cost, high efficient vehicle for the masses is not an easy task. It takes solid engineering and supplier partnerships, which we have, and substantial funding, on which we continue to make progress,” Elio said. “We recently had a successful stock offering, which showed there is investment interest and enthusiasm for this project. We raised significant funds, moving us even closer. Our team will keep fighting to get this done. The key is to not quit, and to continue to move forward toward our goal. We have a number of other financial strategies that we are pursuing relentlessly to help get us to our consumer production launch.”

In addition to bringing Roush on board and announcing the pre-production-vehicle build, Elio Motors has been aggressive in pushing toward production of its Elio vehicle in other areas:

• In November 2015, the company introduced the P5, its fifth generation prototype, featuring a 0.9 liter, 3-cylinder engine designed by IAV specifically for Elio Motors.
• On Jan. 12, Elio Motors announced it will begin building its E-Series of prototype vehicles for testing and engineering purposes.
• On Feb. 12, Elio Motors reached 50,000 reservations for a place in line to buy the vehicle.
• On Feb. 19, Elio Motors became the first organization to raise capital using Regulation A+ and then have its shares publicly traded on the OTCQX Best Market (OTCQX:ELIO).

Elio Motors is using nearly 1 million square feet of a nearly 4 million square-foot former General Motors production facility. When Elio Motors reaches full production, it estimates that the Shreveport facility will have nearly 1,500 workers.

About Elio MotorsFounded by car enthusiast Paul Elio in 2009, Elio Motors Inc. represents a revolutionary approach to manufacturing an ultra-high-mileage vehicle. The three-wheeled Eliois engineered to attain a highway mileage rating of up to 84 mpg, while providing the comfort of amenities such as power windows, power door lock and air conditioning accompanied by the safety of multiple air bags and an aerodynamic, enclosed vehicle body. Elio’s first manufacturing site will be in Shreveport, Louisiana.

Forward-Looking StatementsCertain statements in this press release are “forward-looking statements.”  These statements involve risks and uncertainties, and the Company undertakes no obligation to update any forward-looking information.  Risks and uncertainties that could cause actual results to differ materially from planned operations include, without limitation, delays in receipt of adequate financing, delays in commencement of production, decreased consumer interest in the Company’s products, downturn in general economic conditions, increased production costs and availability of raw materials, competition, and unfavorable market and regulatory conditions, all of which are difficult or impossible to predict accurately and many of which are beyond the Company’s control.  Readers are referred to the Company’s periodic reports filed with the SEC, specifically the most recent reports which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements.  The information contained in this press release is a statement of the Company’s present intentions, beliefs or expectations and is based upon, among other things, the existing business environment, industry conditions, market conditions and prices, the economy in general and the Company’s assumptions.  The Company may change its intentions, beliefs or expectations at any time and without notice, based upon any changes in such factors, in its assumptions or otherwise, and it undertakes no obligation to revise or update publicly any forward-looking statements for any reason.  The cautionary statements contained or referred to in this press release should be considered in connection with any subsequent written or oral forward-looking statements that the Company or persons acting on its behalf may issue.

Elio Motors: Greener Than A Cow

Talk to most people connected to the auto industry – engineers, executives, government officials, journalists and pundits – and you’ll find a common thread about hybrid and electric vehicles. They are coming. Of that, there is no doubt.

The biggest question – when?

Unfortunately for hybrid and EV fans, the answer might be “not any time soon.” The National Automobile Dealers Association recently released its annual sales forecast for 2015. It predicts there will be 16.9 million new vehicles sold in the United States next year, the most since the industry hit 16.99 million in 2005.

One of the factors cited as boosting sales is inexpensive fuel. However, this could slow down hybrid and EV sales, as battery technology also remains costly, at nearly $12,000 to $15,000 per vehicle, according to industry estimates.

All of that adds up to slower adoption for hybrids and EVs. According to J. D. Power estimates, by 2020, hybrids and EVs will have 5.5 percent and 1.9 percent market share respectively.

What’s needed? A bridge to the future that relies on a traditional internal combustion engine, but delivers significantly higher fuel efficiency. It’s a niche that Elio Motors plans to fill.

The company has developed a vehicle that will achieve up to 84 MPG and will cost just $6,800.

Elio Motors, the brainstorm of entrepreneur Paul Elio, is using a combination of lightweight materials and a unique aerodynamic body style to reach its goal. The three-wheeled vehicle will weigh slightly more than 1,200 pounds, roughly half of the average 2,400 pound vehicle today. In addition, the vehicle features unique front-to-back cockpit style seating for two passengers (sort of like a fighter jet).

The front-to-back two-person seating is a unique concept for most motorists. But, that’s one of the secrets to the company’s high fuel efficiency. The vehicle is half the width of traditional passenger cars. Therefore, it moves half as much air as a traditional passenger car, and wind drag is the single biggest factor impacting fuel economy during highway driving.

This American-made vehicle (it will be built in Shreveport, Louisiana, at a former General Motors Hummer H3 facility) will have a significant impact on the United States’ dependence on foreign oil. In just five years, Elio Motors projects that it will reduce total U.S. fuel consumption by 0.35 percent. By 2025, Elio Motors will save 8 billion gallons of gas and reduce CO2 emissions by 160 billion pounds.

It will be even more environmentally friendly than a cow. Here’s the math:

One cow produces about 110 kg or 242 pounds of methane a year through burps and flatulence. Methane is 20 times more effective at trapping heat than CO2 over a 100-year period. The cow’s 242 pounds of methane, multiplied by 20, equals 4,840 pounds of CO2 equivalent greenhouse gases.

An Elio driven 20,000 miles will only produce 4,500 pounds of CO2…making an Elio more environmentally friendly than a cow.

So far, thousands of people are on board. The company has received more than 37,000 reservations for a spot in line when the vehicle rolls off the assembly line in 2015.

Source: Elio Motors