Atlanta Business Chronicle - by Urvaksh Karkaria Staff Writer
Wheego Electric Cars Inc. is raising $2.5 million, according to a Securities and Exchange Commission filing.
The company, steered by former EarthLink Inc. president Mike McQuary, raised $1.2 million in August and launched the Whip — a two-seater electric car, this month.
The Atlanta-based startup, spun out from Ruff & Tuff Electric Vehicles (RTEV) in 2009, will initially sell the Whip as a low-speed or medium-speed vehicle.
As a low-speed/medium-speed vehicle, the Whip will be permitted to drive on streets with a maximum speed of 35 mph. Its sealed lead acid battery has enough juice to keep it moving about 40 miles on a single charge.
While Wheego raised the $1.2 million from existing investors, McQuary expects the $2.5 million to come out of new pockets. The new raise, which McQuary hopes to close by year-end, will help pay for expensive federal crash testing requirements.
“Crash testing is the big wild card,” McQuary said in August. “You’re not sure how many iterations you have to do.”
Once the Whip passes crash-testing, it will be marketed as a full-speed vehicle — capable of zipping around at up to 65 mph. The full-speed version will have an lithium-ion battery — capable of reaching about 90 miles on a single charge — and a more powerful motor.
Electric cars play well with urbanites, who often have to maneuver in tight parking spaces. The fuel-free vehicles, once a niche marketed to environmentalists, is gaining broader appeal in the midst of a global recession and volatile gas prices.
McQuary expects to sell about a 1,000 units of the low-speed version of the Whip in the first year and about 5,000 units of the full-speed version in the first year.
The low-speed Whip is expected to retail for about $18,500, while the full-speed version will go for about $28,500. Federal tax credits, however, will significantly reduce the sticker price. Early interest has come from dealerships across the country, including those in Oklahoma, where the state offers a 50 percent tax credit on electric cars.
