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Stephen presents a nervous pitch for £2.5 million of investment, the largest amount ever requested in the Den. In offering the Dragons a 30% share, he promises that if he gets a Dragon's money he can secure a further £7.5m in government funding.

Peter Jones asks about Stephen's background and the entrepreneur replies that he was a MD of an internet company and has raised £40m for various companies in the past.

James Caan says he likes the concept and wants to invest in a car that will make a difference. He is concerned that many existing electric cars are not appealing but adds that if Stephen can convince him otherwise he'll give him all the money.

Pressed by James on financials, Stephen says the car will cost £7000 to produce and he would hope to sell it for £12, 000. He would expect to produce 1000 a month.

When asked by James what it is that he can do that his competitors' can't do for a faction of the cost, the Hampshire-based entrepreneur says his design team are taking advantage of all the new electric innovations available and this represents a new approach to car manufacture.

Theo Paphitis slates Stephen's suggestion that the car industry is in turmoil and opines that the money he is after would not cover legal or audit fees for most big companies.

When asked by Theo what the combined total of £10m from a Dragon investment and government support would affect, Stephen replies that it would cover the car design, the EU certification and a launch in two years time.

Theo is incredulous. Two years is a long time in research and development and by that time competitors will have stolen a march on him.

Stephen maintains that his car's unique technical innovations would keep it ahead of the pack but Theo remains unconvinced.

He suggests that the car will be already dated when launched and that Stephen "has nothing apart from a dream". He declares himself out.

Deborah Meaden believes the project is a financial loss-maker. She adds that there are better placed competitors who can and will make money from this market and suggests Stephen can't really explain why he is in a better position than his competitors. For those reasons she's out.

Duncan Bannatyne agrees with Theo's earlier comments on how quickly the car will be out of date. The Scot thinks the idea is "crazy" and declares himself out.

James Caan wants to know how much money Stephen has put aside for marketing the car and when he replies half a million, the Dragon opines "that's ridiculous", adding that most car launches cost at least £20 million. But, he tells Stephen that he is "itching" to give him the money so he shouldn't lose it.

Stephen defends his marketing figures, saying he will rely on low cost local marketing and viral campaigns.

James has heard enough - this is simple advertising agency talk and for that he is out.

Peter Jones has the last word. He points out that anyone with Stephen's track record must have some credence but suggests he is "losing sight of reality now". It is unrealistic to think he can make and market a car £10m and for that reason he, too, is out.

The deal done in the Den:

No investment.