Elio Motors backfires again: debut delayed until 2018

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Hopeful buyers of the fledgling three-wheel vehicle made by Elio Motors will have to wait at least another year. For the third straight year, the company that seeks to revolutionize the automotive industry has delayed its vehicle’s debut.

 

The company founded by Paul Elio recently announced new relationships with new

Elio Motors founder Paul Elio.
Elio Motors founder Paul Elio. The company recently announced another debut delay.

suppliers in a press release. It also touted another prototype on display at the North American International Auto Show in Detroit.

In the same time frame, however, the company also posted its latest delay on its Facebook page.

Several media outlets, including The Weekly Driver, recently reported the automaker has about $100,000 in the bank and debt of more than $123 million, according to a Security Exchange Commission document.

Elio said the $123 million is not debt but accumulated deficit.

Here’s his full statement:

“Some media outlets recently misreported information from Elio Motors’ September 30, 2016, financial statements filed with the SEC in November 2016. Instead of having over $123 million in debt, Elio Motors had over $123 million in accumulated deficit. Accumulated deficit refers to a company’s accumulated historical losses. It is not the same as debt.

At September 30, 2016, Elio Motors had a debt of approximately $38.8 million. A significant portion of Elio’s accumulated deficit represents the amounts incurred for engineering, research and development work. These amounts are expensed as incurred and contribute to Elio’s operating losses, which in turn are reflected in the accumulated deficit.”

The vehicle was initially promoted with a pending price of $6,800 and capable of a top speed of 100 mph as well 84 mpg. The vehicle’s base price is now listed at $7,300.

Elio also promised 1,500 jobs in a former General Motors manufacturing plant in Shreveport, Louisiana. The jobs have not materialized.

The former mayor of Shreveport, Cedric Glover, told a local television station: “Those who have purchased a reservation for a car, just need to realize it is money lost.”

Elio’s website currently lists 63,847 reservations.

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5 thoughts on “Elio Motors backfires again: debut delayed until 2018”

  1. Those SEC statements are signed by Paul Elio, and by Elio Motors’ CFO, so it is disingenuous to claim that he did not make the statements therein, or that the statements are not to be taken seriously.

    While the $123M is the accumulated losses (deficit) that the company has had since incorporation, the total debt figure is not significantly different at $119M.

  2. I am one of those who made a $1,000 commitment to purchase an Elio.
    My comment was based on the company’s delivery within a time frame several times missed.
    What can I do to get my $1,000 back?

  3. Elio will be successful. They are just within 1,000 reservations to getting an ATVM loan. That will be done within two to three weeks to get the 65K confirmed buyers. Trump will OK push to get this loan through because 1,500 people will be put to work building the Elio in America. In addition to the 1,500 direct hires, it will bring in another 50K American jobs from suppliers and support.

    • The 65K reservations is in no way tied to the ATVM Loan. That is simply the number that they are allowing to lock in at the $7300 price point.

      • JCB, actually yes the 65,000 is tied to the loan. The DOE said they would do the loan if Elio got 65,000 reservations to show there is enough people interested in the vehicle.

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