Surprise, surprise. The trail of broken promises that is Elio has once again decided to delay production. In a recent Securities and Exchange Commission filing, Elio has stated that production is not expected to begin until the fourth quarter of 2019 . Come on, really, Elio? What kind of nonsense is this? Do you mean to tell us that it takes EIGHT YEARS to put a motorized tricycle into production? I mean, they raised MILLIONS of dollars through crowdfunding and other forms of investment , yet they have accumulated over $145 MILLION in debt without a single customer car being built.
If a company has received $145 million in loans or financing or whatever, surely it’s possible to produce ONE production car? I mean, Elio began toting around that they would build a $6,800 car with 84 mpg , before realizing that this is quite a big ask. As a result, they effectively developed the Geo Metro-based engine after releasing the specifications, and to date, there is no EPA-approved mpg figure. Oh, and the price has been raised, again, to $7,526 . Furthermore, according to a SEC filing for the six-month period between December 31, 2016, to June 30, 2017, Elio had just $4,444 in the bank. I don't know whether or not to laugh or cry at that figure. I honestly hope that that was a typo. I’m no accountant or financial analyst, but I think it takes more than four grand to run a car company. Unless Paul Elio was vigorously throwing money off of the Empire State Building, I can’t imagine how funds were mismanaged that horribly to have such little money in the bank. This is absolute madness!
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A Loss of Hope, Indeed
You see, most start-up car manufacturers make the best of what they have access to so that they can keep costs and debt down, and sales and profit up. If a company spends the better part of a decade spending other people's money without making a cent of revenue, it will fail. If they decide well into the development process that they will scrap the current chassis and frame setup and develop an all-new design, it will fail. In 2016 Elio announced that the frame had “evolved” from a tubular design to a unibody version . I mean, that’s great and all, but “evolution” takes time, and time is money. Furthermore, time means a further delay in production.
This extremely long delay in production yields little hope to us with more sense than money. I understand that costs to create a car company are extensive. I don't get why it is so difficult to develop a tricycle, accumulate over $145 million in debt, and not build a single production model. When I had first heard of the Elio, I was very hopeful and excited to see a new kid on the block, so to speak. New auto manufacturers that aren't producing electric cars or supercars are uncommon nowadays.
Given the circumstances and what Elio initially promised, I would usually cut them some slack. The fact of the matter is, Elio is a sinking ship of debt, lies, and broken promises. Elio took on a massive deficit in the overdevelopment of a child’s tricycle. They lied to you, the consumer, about its purchase price and the date of production. They promised a $6,800 purchase price and 84 mpg, the former having been increased, and the latter still not proven. After all of this crap, the Elio still isn’t in production, and I am willing to bet that it never will be.
References
Read more about the Elio Fiasco.
1. United States Security and Exchange Commission Filing, August 3, 2017 (See Page 22): http://ir.eliomotors.com/all-sec-filings/content/0001567619-17-001564/0001567619-17-001564.pdf
2. Elio’s Original StartEngine.com Crowdfunding Page: https://www.startengine.com/startup/elio-motors
3. United States Security and Exchange Commission Filing, August 3, 2017 (See Page 7): http://ir.eliomotors.com/all-sec-filings/content/0001567619-17-001564/0001567619-17-001564.pdf
4. Elio’s Original StartEngine.com Crowdfunding Page (See header text: Up To 84 MPG, $6,800 Targeted Base Price): https://www.startengine.com/startup/elio-motors
5. United States Security and Exchange Commission Filing, August 3, 2017 (See Page 55): http://ir.eliomotors.com/all-sec-filings/content/0001567619-17-001564/0001567619-17-001564.pdf
6. United States Security and Exchange Commission Filing, June 30, 2017 (See Page 12): https://www.sec.gov/Archives/edgar/data/1531266/000121465917005165/d8111731sa.htm
7. “Elio Motors Improves Chassis and Frame,” Elio Motors, https://www.eliomotors.com/elio-motors-improves-chassis-and-frame-elio-momentum-v66/