Still Seeking Cash, Elio Motors will Sell 100 Pre-Production Vehicles

Elio Motors 3-Wheel Prototype (2014) (Credit: © Elio Motors)

Last year, I was invited to a press event in Los Angeles by Elio Motors—the proposed builder of a $6,800, 84 mpg, three-wheeled vehicle. I walked away from that event excited about the brand, but that excitement has worn a bit as the startup continues to scrape together funding to manufacture its vehicle. Today, the company finally announced that its vehicle will actually see public roads, but the models it’s building will not go to any of the 50,000-plus preorder customers.

» Related: Exclusive Story: Elio Motors Looking at Forced Induction and TDI in the Future

Instead, Elio Motors plans to manufacture 100 pre-production vehicles and sell them to fleet customers. In its initial statement filed with the Securities and Exchange Commission, the company claimed that these 10 units would be for testing purposes only, but with cash flow tight, this is a great way to increase capital.

Of course, Elio claims that this isn’t just a cash grab, and after meeting with company executives at the press event, I see no reason not to take them at their word. The company says that this will also give it the chance to see its cars in real-world driving and take feedback from the fleet customers to its newly announced lead engineering partner, Roush. This will only increase the satisfaction of future retail buyers of the tandem-seating commuter car.

While this is a great way to refine Elio Motors’ first vehicle, it will have an impact on how soon retail buyers can get their cars as the consumer launch will now shift to 2017.

There have been some grumbling among buyers on Elio Motors’ waiting list, but for the most part, they have remained patient with the startup company. This is part of the territory when you buy into a new vehicle that basically breaks the mold that the auto industry has been using for decades.

I’ll continue to monitor the progress of Elio Motors and its three-wheeled rig and bring you updates as they become available. Stay tuned.

One Comment

1. 

   Catbeller

   Mar 14, 2016 at 12:17 pm

   Elio is, as always, waiting for the Department of Energy’s ATVM loan, the same loan Tesla received in the beginning. That always was the only viable plan. They’ve always said so, still say so now.
   The DoE has been delaying their decision for over a year that I know of. They unexpected added requirements last year, per the SEC filing, to build engineering prototypes for complete testing in every way before their final consideration for the loan. Elio has been asked not to politick the matter by the DoE, so they have to keep quiet about the DoE’s odd behavior.
   Elio gets the ATVM loan, production is greenlit immediately. No loan, they just keep hanging there, waiting, waiting, waiting… There is no secondary source of capital. Elio can’t produce enough profit to interest venture capital, Paul Elio said, so Obi Wan is there only hope going forward, unless some financial genius can leverage their stock worth into cash. If the DoE just never makes up its mind, then they must find that way.
   I’d seriously like to see someone try to interview the DoE on the matter of the holdup. Who/What/WHY? Is someone with clout interfering?

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