Just a couple of months after troubled automotive startup Elio Motors said it needed $376 million to bring its three-wheeler to life, the state of Louisiana has fined the company $545,000 for not having a license to accept non-refundable deposits.
Elio has been given 60 days to obtain the appropriate license, but in a statement to Jalopnik, said it intends on appealing the decision.
During a meet last week with the Louisiana Motor Vehicle Commission, it emerged that Elio has accepted approximately 65,000 non-refundable deposits of $1,000 for the three-wheeler. In the meeting, lawyers for Elio Motors asserted the practice did not violate state law as the reservations were for a spot in the line and didn’t guarantee actual sales. However, the commission’s attorney said Elio’s use of the words “buy”, “sell” and “own” on its website and marketing material suggested it had intent to sell.
Even more worrying is the fact that, when the commission chairman asked where the $27.8 million in reservations was, attorneys for the company couldn’t say.
In a statement, Elio Motors said: “We do not believe the findings were in harmony with Louisiana motor vehicle laws nor in the best interest of the people of Louisiana or Elio Motors, and plan to appeal the decision.”
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