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Elio Motors Seeks $100 Million Cash Infusion
Startup Elio Motors Inc. is scrambling to launch an initial public offering so it can raise $100 million needed to launch production of its three-wheeler in 2019.
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Startup Elio Motors Inc. is scrambling to launch an initial public offering so it can raise $100 million needed to launch production of its three-wheeler in 2019.
Elio’s IPO filing says the company has less than $209,000 in cash and that its two-seater, which has gone through five prototype versions, still needs “significant investment” to finalize and launch.
The 3-cylinder car is to be produced at a former General Motors Co. factory in Shreveport, La., that Elio acquired in 2013. But the Phoenix, Ariz.-based company has a capital deficiency of $42 million and stockholder’s deficit of $146 million, according to Automotive News. The newspaper says an independent accounting firm warns there is “substantial doubt” about Elio’s ability to continue without new capital.
When Elio unveiled its vehicle concept in 2012, it said the runabout would retail for $6,800, reach a top speed of 100 mph, deliver about 84 mpg and go on sale in 2014. The delivery date was pushed back to mid-2016, then delayed again.
The company’s IPO filing says the vehicle now will be priced at $7,500 and won’t be ready to turn over to customers until at least 2019. Elio said previously that it has collected $28 million in reservation deposits from 65,000 would-be buyers.
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