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Elio Motors Needs A Quick $25 Million

(Credit: Elio Motors )

Car Manufacturer News

Elio Motors Needs A Quick $25 Million

Remember Elio Motors, the company that was going to revolutionize how we get around with a weird three-wheeled “car”? It’s in serious trouble. The good news is with a quick $25 million, it can make things right.

One of the many problems Elio faces is the fact it hasn’t paid its RACER Trust bill since October of last year, according to KSLA-12, a news station in Louisiana. That was for a $23 million loan, or money to set up shop in an old GM plant. Add to that amount $1.7 million in back payments, plus an 18 percent interest rate that just keeps racking up the tab.

The RACER Trust has given Elio a year to come up with the loan principle. This is with the hope that that company will create jobs in Louisiana.

Things get even better. The SEC granted Elio a temporary reprieve on opening its plant in Shreveport, Louisiana and putting 1,500 people to work on churning out vehicles. That would take an estimated $376 million.

For now, the SEC is only holding Elio’s feet to the fire on the RACER loan, saying it needs to generate $25 million in funding by the end of July, then pay back the loan a year later. The only problem is, who at this point is crazy enough to float Elio’s boat? As a company, Elio has a history of blowing through money, with little to show for it. Even if you believe in the original goal, Elio might not be an appealing investment.

Steven has been writing about cars and other transportation issues worldwide for over ten years. His love for cars started long before he can remember, with Corvettes and 911s being his first car-crushes. Since then, he has owned many types of vehicles and has come to appreciate a wide variety of models, the diverse car culture groups, and the automotive industry in general.

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