TrueCar Inc (NASDAQ:TRUE) founder Scott Painter’s latest subscription-based service for electric vehicles can purportedly book a Tesla Inc (NASDAQ:TSLA) Model 3 in ten minutes for a flat monthly fee.
What Happened: Painter has raised $83 million in debt and equity financing for Autonomy, the venture that would let consumers book Model 3s for a three-month minimum term.
The service comes with a price tag starting at $550 a month with an initial fee of $5,500 for the Model 3.
"Electric vehicles have reached a tipping point, and it's clear that the Tesla Model 3 is this generation's Prius," said Scott Painter, founder and CEO of Autonomy.
"Financial responsibility and the avoidance of debt is also at an inflection point and subscriptions have become a pervasive, sustainable business model and a cornerstone of modern digital life."
The service is currently available in the startup’s home state California with expansion plans for more regions.
The Santa Monica, California-based Autonomy’s subscriptions are available online, via the app or phone.
The startup said the program provides “new EV manufacturers and legacy OEMs a new distribution channel” for their vehicles besides allowing buyers to try out the electric vehicles first.
“This is especially relevant as EVs start to appear in greater volumes in the used vehicle marketplaces,” Autonomy said.
Why It Matters: At least 50 new electric vehicles are set to be launched or are making a debut in the U.S. in 2022. A lot of these are electric pickup trucks as legacy stalwarts General Motors Co (NYSE:GM) and Ford Motor Co (NYSE:F) are rushing to make the switch to electric vehicles to meet the growing customer demand for the greener option.
See Also: GM's Electric Silverado Vs. Ford's F-150 Lightning: Which Is The Better Electric Truck?
Most legacy rivals have fallen behind industry disruptor Tesla Inc (NASDAQ:TSLA), which delivered a record 936,172 electric vehicles globally in 2021.
Price Action: Tesla shares closed marginally higher at $996.27 a share on Thursday.
