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Could the End of Elio Motors Be In Sight?

January 4, 2017

Just 2 months after Elio Motors CEO Paul Elio told the Louisiana House Commerce Committee that production of his 3 wheel automobile would begin in Shreveport by the end of 2017, the company has announced another round of delays and says production will not start until late 2018.

However, according their latest SEC filings, any time frame they give may be a pipe dream. The company has accumulated a deficit of over 123 million dollars as of September 30,2016.

Elio stated this about their financial situation in the filing: ‘These factors, among others, raise substantial doubt about our ability to continue as a going concern. If we are unable to continue to obtain financing to meet our working capital requirements, we may have to curtail our business sharply or cease operations altogether.’

Could the End of Elio Motors Be In Sight?
 

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January 4, 2017

However, according their latest SEC filings, any time frame they give may be a pipe dream. The company has accumulated a deficit of over 123 million dollars as of September 30,2016.

Elio stated this about their financial situation in the filing: ‘These factors, among others, raise substantial doubt about our ability to continue as a going concern. If we are unable to continue to obtain financing to meet our working capital requirements, we may have to curtail our business sharply or cease operations altogether.’

Could the End of Elio Motors Be In Sight?
Didn't see this coming.... NOT!!!! >:D

The only ones I feel sorry for in this, are the poor folks who got suckered into giving Paul Elio their hard-earned money for a promise that was broken before the ink was dry on the checks...
 

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And now a word from the Former Mayor of Shreveport

Former Shreveport mayor Cedric Glover said those who have purchased reservations for a car, just need to realize it is money lost.

"Going into the fourth quarter this year, they only had $101,000 in cash on hand. So when you think about the actual amount of money that they've been expending, Paul Elio with a salary of over 250 thousand," said Glover.

According to Glover, much of the blame can be attributed to Racer Trust, the company in charge of putting the GM plant to the best use for the community following the bankruptcy. He said the company had an obligation to bring new jobs to the facility following their bankruptcy, and despite companies like Deacon Air Conditioning and Land Rover vying for the production site, the property rests with Elio.

"If you look at Paul Elio from 2009, certainly by the time you get to 2011 and 2012, it's clear that what he is in fact is a dreamer and a schemer. It leads one to ask, what was the actual motivation behind committing these facilities, this equipment to Paul Elio and the Elio operation," said Glover.



As updated a few hours ago . . . Elio Motors further delays production in Shreveport; warns of po - KTBS.com - Shreveport, LA News, Weather and Sports
 

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Didn't see this coming.... NOT!!!! >:D

The only ones I feel sorry for in this, are the poor folks who got suckered into giving Paul Elio their hard-earned money for a promise that was broken before the ink was dry on the checks...
A friend of mine laid out $1000.00 a couple years ago, to "reserve" a vehicle when production started. I feel bad for him.
 

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A friend of mine laid out $1000.00 a couple years ago, to "reserve" a vehicle when production started. I feel bad for him.
And that's the really sad part. There are a lot of folks who invested in Elio, that knew there was a 90% chance it would never come to anything. They had the money, and didn't mind the risk, or losing it. But for a lot of people, they believed a promise that was made to them by Paul Elio. They will be massively hurt by the fact that they wasted their money.

Of course, I'm sure Paul Elio is sitting pretty in his mansion, a wonderful little nest egg all put aside, paid for by 40,000+ "reservation holders"....

Because of the fine print on the contract Elio created, none of them have any recourse at all...:(
 

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I almost put money down on one years ago, but then I thought - nah - I'll just wait until they actually are sold or until someone gets one, doesn't like it, and sells it. Usually when someone starts collecting money before having a product to give you in exchange, it's a scam. Kickstarter isn't always that way, but it's still a gamble.

-silent
 

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I almost put money down on one years ago, but then I thought - nah - I'll just wait until they actually are sold or until someone gets one, doesn't like it, and sells it. Usually when someone starts collecting money before having a product to give you in exchange, it's a scam. Kickstarter isn't always that way, but it's still a gamble.

-silent
That's the sad thing. I loved what the Elio stood for. Cheap and cheery motoring. It would've been modern car of the people, by the people. I don't think they should have developed their own engine and went with a bespoke interior (existing off the shelf parts and engine was part of the appeal and low cost in the first place), that in itself cost them a lot of money they likely never recuperated. But the car itself is a solid idea planted in reality that would be a near world beater.

However, a business is realistically only as good as its weakest link (tbh just like a computer or smartphone), and either through deception or flying too high like Icarus, Paul himself was Elio's weakest link. To me, he seemed genuinely interested in building the car, he just had no idea how to run an automaker, or how to realize that he's bitten off more than he can chew.
 

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That's the sad thing. I loved what the Elio stood for. Cheap and cheery motoring.

I need to underscore MB DNA's sentiment. There was no proven aspect to any of the blue-sky promises that Elio used to induce prospective reservation holders.

There was no way to deliver on any promises that Elio pulled out of his ass. No cheap. No cheery. Never.

It could not get 84 MPG, or anything close. It could not be reliable. It could not be safe. It could not cost $6800, or anywhere close to that in regular production.

The gullibility of the American public is astounding, but the blame lies with Paul Elio, who should be jailed for fraud.
 

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Neon, good morning. Really hard to "drive" smoke and mirrors.

"A near world beater" - please pass me whatever the heck you have in that bag . . . :rolleyes:
Optimism when I shouldn't be optimistic? I have that issue sometimes.

As for what's in the bag, little blue pills that will give you an effect inverse of what you're expecting. :p

I need to underscore MB DNA's sentiment. There was no proven aspect to any of the blue-sky promises that Elio used to induce prospective reservation holders.

There was no way to deliver on any promises that Elio pulled out of his ass. No cheap. No cheery. Never.

It could not get 84 MPG, or anything close. It could not be reliable. It could not be safe. It could not cost $6800, or anywhere close to that in regular production.

The gullibility of the American public is astounding, but the blame lies with Paul Elio, who should be jailed for fraud.
You two are right about all of it. It was never destined to be anything Paul sold it to be. It was vaporware, pure and simple.

However, I do also believe it's only vaporware because Paul is effectively a con man.

Under the direction of someone who knows what they're doing and possibly a diesel engine (never knew why that was never considered in the first place), the car could come somewhat close-ish to Paul's proposed vision (save for the hilarious 5 star safety rating claim).

In that respect, the Elio is pretty parallel to the Dale...a good idea, but penned and ruined by snake oil and conning people.
 

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Neon, good morning. Really hard to "drive" smoke and mirrors.

"A near world beater" - please pass me whatever the heck you have in that bag . . . :rolleyes:
I need to underscore MB DNA's sentiment. There was no proven aspect to any of the blue-sky promises that Elio used to induce prospective reservation holders.

There was no way to deliver on any promises that Elio pulled out of his ass. No cheap. No cheery. Never.

It could not get 84 MPG, or anything close. It could not be reliable. It could not be safe. It could not cost $6800, or anywhere close to that in regular production.

The gullibility of the American public is astounding, but the blame lies with Paul Elio, who should be jailed for fraud.

I 100% agree with both posts. I was flamed by kool-aid drinkers on the original thread regarding my doubts this would come to fruition. But as a person who has worked in the auto industry, I knew it wasn't a reality. Elio planned to market an extreme niche vehicle(even more so than smart), but wanted sales on par with a Ford Mustang. It was never going to happen... If he wanted to set a sales goal, it should have been at smart sales levels, not Big 3 levels. Because of that, it was doomed from the start. He was never going to get 250,000 sales a year, which his own plan stated he needed to make it viable. Plus they were counting on the Governement loans for capital development.

The entire scheme was based on pie-in-the-sky dreams to begin with... So there was no chance of this actually getting to market. I've seen what it takes to get a new vehicle to market, and Elio never has the depth of resources, or money to make it happen...

He threw around a lot of big-named suppliers as development partners, but here is the reality folks:
The checks stop coming in, and they stop work. No if's, and's, or but's about it... They don't get paid, they don't work on your project.
 

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I can't see a reason why anyone would give Elio another dime. There is a long track record of delays. I have to also wonder how they could set a price and promise a fuel economy on a car that hadn't been built. Unless the cars only cost $2000 to manufacture, I don't see how they can dig their way out of debt and get to a point where they can produce a car.
 

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Be optimistic, be a dreamer as that's what allows you to stand out in the crowd! Just don't let the "hustle" of the likes of a Paul Elio become your nightmare. :wink:
I do tend to stand out in a crowd in a positive way. 0:) :)

The story of Elio is also why I generally stay away from things like Gofundme and Kickstarter. Prove to me that you have a real product that at least comes close to your selling points, and you'll have my money. So many of these crowdfunded operations go belly up (for a multitude of reasons) leaving people who trusted the company in the dark.

Pebble (the smartwatch) is one of the latest examples of which. They somehow bled through all of their money, declined a deal from Citizen, and ended selling most of their assets to Fitbit.
But the kicker? Effective immediately, all support for Pebble devices was dropped. So it didn't matter if you bought a Pebble yesterday or gave money to their latest Kickstarter, the warranty is void, Pebble won't service it (even if you tried to pay for it), refund your money, and won't provide any replacement parts. They basically sold their tech to Fitbit and nuked everything else, burning every single person who trusted Pebble.
 

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The sad part to all of this is the people who were duped. My wife said she would buy one once they came out. It would have been a fun ride. At the very least, it would be fun to make your own Elio. It's a neat concept. It's just got idiots running the show.

-silent
 

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And this is why I just plunked down $7900 for a 2015 smart with 260 miles. More than two years ago put $100 down on an Elio, because I figured I could afford to lose that much. Despite constant pleadings from them to raise it, no go. Sad to see a seemingly good idea go splat.
 
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