Elio Motors isn’t doing so well. Not only does it need millions in cash quick, now the state of Louisiana has leveled a $545,000 fine against the company. This time the issue is the nonrefundable deposits for vehicles. According to Louisiana law, as a manufacturer Elio needs a license to accept them. And guess what? Elio doesn’t have a license.
The state of Louisiana is giving Elio 60 days to get a license. The company will probably appeal the decision, arguing it isn’t a manufacturer. After all, what has Elio built so far, other than everyone’s expectations?
Of course, this fine from the state of Louisiana is a drop in the bucket compared to the $376 million Elio Motors needs to get production going. The company’s reportedly been toiling at fundraising, because it reported only $120,000 in cash on hand at the end of last year.
So far, Louisiana officials have been anything but sympathetic toward Elio. It could be the company hasn’t delivered on all those jobs it supposedly was going to generate for residents. For years now, Elio has just kept pushing the production start timeline back further and further.
Something has to give, and it might be Elio Motors itself.