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.