Troubled startup Elio Motors is still struggling to acquire the funds needed to build its low-cost three-wheeler, an Automotive News report has revealed.
Elio initially intended on commencing production of the three-wheeler in 2015 but that date has come and gone. Since then, the company has continually pushed back its targeted launch day while slowly increasing the price of its first model.
Despite raising well in excess of $100 million since its formation, Elio confirmed last year that it needed an additional $376 million to commence production.
As investor interest in the company deteriorates, Elio has started to accept capital in the form of Bitcoin. What’s more, it plans on launching its very own security token offering dubbed ElioCoin. You can’t make this stuff up…
The car business is a costly one
The company claims that it will start production exactly 76 weeks after the security token offering is complete. However, no date for this offering has been given, leaving investors with no firm idea of when, if ever, the promised three-wheeler will ever be built. Elio intends on building the model
at GM’s former plant in Shreveport, Louisiana.
According to Louisiana Economic Development secretary, Don Pierson, Elio is a “speculative project” and had its application for funds from the U.S. Department of Energy rejected.
“Elio has struggled for years after hoping for the award of a federal Department of Energy Advanced Technology Vehicles Manufacturing loan.
“They have tried many other ways to raise capital — including an IPO and buyer deposits — and have yet to aggregate the funds needed to launch this expensive endeavor,” Pierson said.
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