In 2016, when Atlis Motor Vehicles was officially formed, we started with this idea that we wanted to make the vehicle experience better. Traditional vehicle ownership requires continuous coordination of numerous items, with many unexpected expenses that can pop up. As the market grows and younger generations are coming into vehicle ownership they're looking for an experience similar to what they receive with their phones, gym memberships, music memberships, and other pay-as-you-go services. We believe owning a vehicle should be a convenience, not a burden.
Marketplaces are becoming more competitive and budgets are becoming tighter. Some people have begun to opt out of vehicle ownership, partly because ownership is expensive and it's difficult to juggle financing, insurance, routine maintenance, fuel costs, registrations, and more. Costs are irregular with fuel prices going up and down on a monthly basis, annual maintenance and inspection requirements, and unexpected vehicle breakdowns and recovery services. It's very difficult if not impossible to predict your budget for a vehicle with all associated costs, which makes ownership difficult - especially on a limited wage.
Subscription models simplify these complex processes, making the products more convenient and the services easier to consume. The barrier to entry for vehicle ownership can be lowered when we can provide one easy-to-understand monthly payment which is inclusive of most everything you need. No need to worry about warranty, as during the subscription period the vehicle will be fully covered against defects and routine maintenance.
Fleet users often outsource the cost of maintenance to third party contracts in an effort to have a known cost-of-ownership and to have a single point of contact for most maintenance items. These services are thorough, but come at a high premium. With electrification, much of the maintenance is simplified and less time consuming, keeping your vehicles rolling with fewer interruptions. The subscription model on top of electrified technology will provide fleet owners the best of both worlds - maximizing time on-the-road and having a predictable cost - which is a lower overall cost of ownership than fossil fuel vehicles.
For Atlis, the subscription model allows us to get a vehicle back after the subscription is over, so we can recondition and update it with the latest and greatest features and technology before re-subscribing it under secondary programs. These secondary subscription programs can be sold at a lower, even more affordable pricing tier. This process will allow us to ensure the vehicle is ready for another 3 or 5 years of use with a new subscriber.
Our vehicles are being designed for maximum life, and with electrification the expected life of vehicles in general will continue to increase. These factors will allow us to put additional customers into each truck, further reducing the cost of the subscription service for everyone. As a business, we can continue to create value for something created long ago, with continuous hardware and software upgrades, and other re-fits, we can keep the vehicle feeling modern while still maintaining a sustainable ecosystem.