Elio Has Only 26,000 Orders for Its Cars

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By Douglas A. McIntyre Updated Published
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Elio, which claims it has introduced a revolutionary lightweight, high-gas mileage, inexpensive car, has a problem. Orders for the vehicle are barely above 26,000 (26,896 as of August 10) just two weeks before its ends it special offer to draw customers. And this is after a tidal wave of press coverage about the tiny vehicle.

Elio’s appeal to customers is simple:

The Elio is a revolutionary new approach in transportation engineered to achieve 4 key “Must Haves”:

84 MPG Highway (gas powered 3 cyl.)
American Made (utilizing 90% North American content)
Engineered to the highest safety standard
$6,800 (starting price)

And yes, it’s the real deal. Many call it the next big thing in transportation, or simply ingenious

Demand for the “next big thing” is usually better, even with a deal which allows people to order the car before September 2 without incurring an upcoming 25% non-refundable reservation deposit.

READ ALSO: 9 Cars Most Likely to Be Dumped

Among the objections to the Elio is certainly that it is not safe, at least compared to much larger, heavier cars. Elio comes with a “Safety Management System [that] includes three airbags, a reinforced roll-cage frame and Anti-Lock Braking System.” But can those things help passengers if an Elio gets into a high-speed accident against a two-ton car or much larger truck? In an accident, most drivers would prefer to be in the heavier vehicles.

Elio has plenty of reasons other than the car itself to get people to make orders. For those who put down a $1,000 non-refundable deposit before the September 1 deadline, a customer gets a T-shirt and bumper sticker — although these are in limited supplies.

If Elio can survive on a few tens-of-thousands or orders, it will have done a great deal more than building a small car with good gas mileage. It may be the only non-luxury manufacturer that can operate with such a tiny handful of customers.

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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