Autonomy Launches Tesla Model 3 EV Subscription Program

Rhea-AI Summary

NextCar Holding Company has launched an electric vehicle subscription program focused on the Tesla Model 3, rebranding under the 'Autonomy' brand. The subscription allows consumers to access vehicles month-to-month after a three-month minimum term, with flexible pricing ranging from $550 to $1,000 per month. The service, initially available in California, aims to provide a low-commitment option for those interested in electric vehicles. The launch follows a successful $83 million funding round and is bolstered by government initiatives supporting EV adoption.

Positive

• Launch of Tesla Model 3 subscription program offers flexible vehicle access.
• Flexible pricing structure between $550 and $1,000 per month appeals to consumers.
• Raised $83 million in funding to support business operations and growth.
• Government initiatives promoting EV adoption may enhance market potential.

Negative

• None.

SANTA MONICA, Calif., Jan. 20, 2022 /PRNewswire/ -- NextCar Holding Company (NXCR), the fintech and insurtech vehicle subscription platform founded by serial auto retail, auto finance and insurtech entrepreneurs Scott Painter and Georg Bauer, has launched an electric vehicle and zero emissions vehicle subscription program starting with the Tesla Model 3, and has rebranded under its newly acquired consumer brand, 'Autonomy.' In addition to the top-level global domain name Autonomy.com and the awarding of the Autonomy app in the app store, the company has also acquired 1-800-AUTONOMY (1-800-288-6666). This provides consumers three distinct channels by which to reserve a vehicle and manage their subscription.

"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."

Autonomy's Tesla Model 3 vehicle subscription program features a month-to-month contract after a three-month minimum term. It is designed for consumers to be able to order their vehicle in 10 minutes by providing their driver's license and a digital form of payment, and for the vehicle delivery or dealership pickup process to transpire in under twenty minutes. Consumers can manage their entire vehicle subscription digitally through the mobile app.

The program provides new EV manufacturers and legacy OEMs a new distribution channel for their vehicles, one that also allows a growing "EV curious" marketplace to have a flexible and affordable way to drive and test out an electric vehicle. This is especially relevant as EVs start to appear in greater volumes in the used vehicle marketplaces.

Autonomy Subscription Program for Tesla Model 3: 

• Available Models: At launch, low mileage Model 3 Teslas, with later expansion to other Tesla models.
• Subscription Pricing: All subscriptions include routine maintenance and roadside assistance. Consumers have flexibility to customize their monthly payments to as low as $550 a month (with a $5,500 start fee) up to $1,000 per month (with a start fee as low as $1,000). A $500 security deposit is required when the subscription is activated.
• Reservation: Fully refundable $100 deposit (applied to security deposit at activation).
• Term: Month-to-month with a three-month minimum.
• Availability: In California with new markets opening soon.
• How to Subscribe: Reservations can be made at Autonomy.com.

Autonomy's Tesla Model 3 subscription program is available for consumers to register at Autonomy.com. The program will also be featured on leading automotive marketplaces visited by in-market consumers when they are shopping for a vehicle, including in California through TrueCar.com (powered by TrueCar, Inc.(Nasdaq: TRUE)) and AutoWeb, Inc. (Nasdaq: AUTO), which generates more than 4.2 million vehicle leads each year from its portfolio of sites like Car.com and Usedcars.com. Car shoppers visiting these websites will be able to discover and experience this new way to quickly get behind the wheel of one of the bestselling electric vehicles in the U.S.

"Autonomy is a big idea, and whether it's freedom from long-term debt, commitment, complication, confrontation, or fossil fuels, everyone can relate to the desire for more autonomy in life," added Painter.

To support the launch, the company recently raised $83 million in debt and equity financing.

The launch also comes on the heels of the Biden administration's recently passed infrastructure bill, which earmarked $7.5 billion dollars to create a national charging infrastructure to support EV adoption, and following last August's presidential executive order establishing a target for zero-emission vehicles to make up half of all new vehicles sold in 2030. These factors create an opportunity for consumers and support the economics for operating a large fleet of electric vehicles.

"The future of transportation is zero emissions vehicles. At Autonomy, we are accelerating the shift toward sustainable mobility by giving consumers flexible access to electric vehicles at affordable monthly payments," said Georg Bauer, co-founder and president of Autonomy. "Vehicle subscriptions reduce the barriers to adoption of electric vehicles, providing a low-commitment option with lower upfront costs. It is perfect for people who are interested in EVs but are not ready to make a long-term commitment due to concerns around cost or range anxiety."

Initially, the program will be available to consumers in California, with plans to rapidly expand to larger U.S. markets. California is already a first adopter in electrification, with electric vehicles accounting for about 10% of overall sales and 42% of U.S. EV registrations. 

About Autonomy
Autonomy is a technology company on a mission to make access to mobility easy and affordable through car subscriptions. The company was founded by auto retail, auto finance, and auto insurance disruptors Scott Painter and Georg Bauer, who founded Fair, the first-ever used-vehicle subscription offering, pioneering the Car-as-a-Service (CaaS) category. Building upon that experience, Autonomy has created a turnkey vehicle subscription platform for consumers and the automotive industry that enables vehicle subscriptions to scale profitably and become a mainstream alternative to traditional car buying. Autonomy is innovating through technology, finance, and insurance to power car subscriptions for the used-vehicle sector, as well as the battery electric vehicle and zero emissions vehicle sectors. Autonomy relies on partnerships with automakers and brick-and-mortar car dealerships to provide a benefit to both consumers and the industry. Autonomy represents freedom from long-term debt, freedom from long-term commitments, and even freedom from fossil fuels. It means new choices and more control over your financial well-being. Autonomy is based in Santa Monica, CA. 

Autonomy Contact:
Shadee Malekafzali
Head of Corporate Communications & Investor Relations
shadee@autonomy.com

Asher Gold 
asher@gold-pr.com

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SOURCE Autonomy; NXCR

FAQ

What is the subscription program launched by NextCar Holding Company for Tesla Model 3?

NextCar Holding Company launched a subscription program for the Tesla Model 3, allowing consumers to access the vehicle on a month-to-month basis after a three-month minimum term.

How much does the Tesla Model 3 subscription cost through Autonomy?

The subscription pricing for the Tesla Model 3 ranges from $550 to $1,000 per month, depending on the terms selected.

In which area is the Autonomy Tesla Model 3 subscription program available?

The Tesla Model 3 subscription program is initially available in California, with plans for expansion to larger U.S. markets.

What funding did Autonomy secure to launch the subscription program?

Autonomy secured $83 million in debt and equity financing to support the launch of its Tesla Model 3 subscription program.

What government initiatives support the subscription program for electric vehicles?

The launch of the program is supported by the Biden administration's infrastructure bill, which allocated $7.5 billion to create a national charging infrastructure for electric vehicles.