Elio Has Just $4,444 In The Bank, Delays Production Again
Things aren’t looking too good....by Javon Johnson, on
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.
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
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.
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/