Zero Pollution Motors
DEAL
EPISODE SUMMARY
🕓 Air Date: May 1, 2015
Asking For:
$5,000,000 for 50%
Investor:
Robert Herjavec
Deal:
$5,000,000 for 50%
PRODUCT SUMMARY
The Air Car, a car running on highly compressed air, priced at $10,000, with a 100-mile range and a four-hour charge time.
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Background Story
Zero Pollution Motors, headquartered in the scenic Green Mountains of Brattleboro, Vermont, is on a mission to redefine urban transportation with its innovative product, the Air Car. Founded by Ethan Tucker and seasoned entrepreneur Pat Boone, the company has a unique blend of environmental vision and business acumen. Ethan Tucker, hailing from the beautiful Green Mountains, brings a passion for sustainable solutions to the forefront. His background reflects a deep commitment to environmental causes, and he saw an opportunity to make a significant impact on the automotive industry. Collaborating with Pat Boone, an aging yet enthusiastic singer with a lifelong entrepreneurial spirit, Tucker found a strategic partner to propel their vision forward.
The idea for the Air Car originated from the inventive mind of Guy Negre, a renowned innovator holding an impressive 150 patents, including a revolutionary titanium piston for a lighter motor. With Negre’s expertise in development and a love for cars, the founders recognized the potential to introduce a game-changing vehicle to the market. The Air Car concept envisions a shift towards cleaner, greener transportation by utilizing highly compressed air as a propulsion principle. Unlike electric cars, the Air Car eliminates the need for expensive batteries, making it a more cost-effective and environmentally friendly alternative.
The decision to locate the company in Brattleboro, Vermont, aligns with the founders’ commitment to sustainability and innovation. The product’s development has progressed to the prototype stage, showcasing a promising future for the Air Car. As the founders prepare to bring this groundbreaking vehicle into production, they face the challenges of navigating safety standards, establishing regional plants, and gradually introducing the Air Car to the American market. The choice of Hawaii as the initial testing ground reflects a strategic approach to address specific environmental issues and market dynamics before expanding to other regions.
The Product
The Air Car, developed by Zero Pollution Motors, represents a groundbreaking leap in urban transportation, offering a clean, efficient, and affordable solution. Operating on a highly compressed air propulsion system, this eco-friendly vehicle sets itself apart from conventional cars by eliminating the need for expensive batteries, making it a cost-effective and environmentally conscious choice.
The innovative technology works by using compressed air to drive the pistons in the engine, providing a propulsion principle superior to traditional combustion engines and even electric cars. The Air Car achieves a 100-mile range on a single charge, requiring a mere four hours to charge itself by plugging into any outlet. This unique charging process, combined with the absence of battery-related issues, positions the Air Car as a reliable and convenient mode of transportation.
Crafted from materials such as fiberglass, polyurethane, and resin, the Air Car ensures durability, with its structure designed to withstand impact, as demonstrated by its ability to resist bending when pressure is applied. While crash tests are pending, the simplicity of its construction and advanced materials make it an appealing choice for safety-conscious consumers.
Priced at an affordable $10,000, the Air Car targets a broad market of cost-conscious consumers looking for a sustainable alternative to traditional vehicles. Zero Pollution Motors plans to manufacture the Air Car in regional plants, with the initial production slated for Hawaii, creating a controlled environment for market testing.
How It Went
The company’s position before Shark Tank
Zero Pollution Motors is at a pivotal stage in its journey, poised to bring the Air Car from prototype to production and introduce a revolutionary mode of transportation to the market. The company’s health and position are characterized by its strategic approach, focusing on regional plants for production rather than large-scale manufacturing. The $5 million sought from investors is earmarked for establishing the first production facility in Hawaii, aligning with the company’s vision of addressing pollution issues, high gas costs, and creating a controlled environment for market testing.
Key to the company’s success is its partnership with Guy Negre, the inventor behind the Air Car technology, holding an impressive 150 patents. This collaboration signifies the company’s commitment to leveraging innovative solutions and expertise. Additionally, the association with Pat Boone, an aging yet enthusiastic entrepreneur with a background in the entertainment industry, provides valuable connections and a strategic edge in securing deals. While the Air Car has already met safety standards in Europe, the company is navigating the intricate process of bringing it into the United States market.
As for the company’s current structure, it revolves around the regional plant model, departing from the traditional large-scale manufacturing paradigm. Zero Pollution Motors envisions small, regional plants strategically placed to cater to specific environmental and market needs. This approach aligns with the founders’ vision of providing a sustainable and affordable transportation solution tailored to the unique challenges and demands of different regions. The success of the Air Car in Hawaii and subsequent negotiations for American-wide distribution will likely shape the company’s trajectory and financial outlook in the near future.
The Negotiations:
The negotiations for Zero Pollution Motors and the Air Car were a rollercoaster ride in the Shark Tank. The pitch began with a bold ask of $5 million in exchange for 50% equity in the company. The Sharks were immediately intrigued by the concept of a car running on highly compressed air, with Pat Boone and Ethan Tucker leading the pitch. As the pitch unfolded, skepticism arose regarding the limited territorial rights offered by the founders. Four Sharks, including Mark Cuban, Kevin O’Leary, Lori Greiner, and Robert Herjavec, expressed concerns about the exclusivity of the deal and the challenges associated with establishing a regional plant.
The Sharks highlighted the need for broader territorial rights to make the investment more appealing. Despite initial reservations, a twist in the negotiation came when Pat Boone, in collaboration with Ethan Tucker, struck a deal with Robert Herjavec. The deal involved a $5 million investment for 50% equity, contingent on negotiating an American-wide distribution deal. This contingency allowed the Sharks to participate in the broader success of the Air Car beyond the initial regional plant in Hawaii. The negotiation showcased the challenges of introducing a groundbreaking product to the market and the importance of securing a foothold in the competitive automotive industry.
Pat Boone’s connections and Robert Herjavec’s expertise presented a strategic alliance that could potentially navigate the complexities of bringing the Air Car to the American market. The deal highlighted the delicate balance between securing territorial rights, attracting investment, and setting the stage for the Air Car’s potential success on a national scale. The negotiation underscored the high-stakes nature of investing in innovative and disruptive technologies, with both the founders and the Sharks taking calculated risks for a chance to revolutionize urban transportation.
