Elio Motors Facing Increasing Deficit With $123 Million Loss Reported To SEC

Elio Motors is facing a bleak financial picture and another delay, according to a news report.

Local news channel KTBS in Shreveport, La., reported that the three-wheel carmaker had $101,317 in cash and about $123.2 million in accumulated deficit as of Sept. 30, 2016. That came from a U.S. Securities and Exchange Commission filing, which showed a huge loss from the year before. According to the filing, the startup also reported having about $6.8 million in cash and a deficit of about $2.3 million as of Dec. 31, 2015.

KTBS also found a comment made by the company on its Facebook page that sets 2018 as the new target date for launching its car. That follows previous delays that were first announced in 2014.

Elio had taken over an old General Motors factory in Shreveport in early 2013. Initially, the company was planning on beginning production in 2014 and hiring 1,500 workers in an area that had been hit hard by GM layoffs. Manufacturing the cars has seen continuous delays. KTBS reported that it has “yet to create a single job or dollar of revenue for the area.”

CEO and founder Paul Elio had started up the company in 2009 and was building interest in the three-wheeler that could get 84 miles per gallon. It had started out as a $6,800 car, which was later changed to $7,300 with a few requirements including paying a non-refundable reservation and destination and delivery charges.

The company claims to have 50,000 people who’ve placed reservations on the car. Those willing to make a deposit somewhere between $400 and $900 also needed to agree to the following terms on Elio’s website reservation form: “While maintaining my present place in line for delivery, I understand that currently there is no definite date set for production or delivery of my vehicle.”

SEE ALSO:  Elio Motors Developing Its Own New Three-Cylinder Engine

KTBS reported that Shreveport mayor Cedric Glover places much of the blame on Paul Elio for overpromising and lacking integrity.

“Going into the fourth quarter this year, they only had $101,000 in cash on hand. So when you think about the actual amount of money that they’ve been expending, Paul Elio with a salary of over 250 thousand,” said Glover.

Glover also puts some of the blame on Racer Trust, the company in charge of putting the GM plant to the best use for the community following the GM bankruptcy. He said that other companies, including Deacon Air Conditioning and Land Rover, had put in bids to take over the old GM plant, but the property has stayed in the hands of Elio.

“If you look at Paul Elio from 2009, certainly by the time you get to 2011 and 2012, it’s clear that what he is in fact is a dreamer and a schemer. It leads one to ask, what was the actual motivation behind committing these facilities, this equipment to Paul Elio and the Elio operation,” Glover said.

Jalopnik had contacted Elio Motors for comment, but had heard nothing back.

Jalopnik


More Hybrid News...