Paul Elio Wishes Folks Would Look On the Bright Side

Ronnie Schreiber
by Ronnie Schreiber
paul elio wishes folks would look on the bright side

As described by Forbes as “junk”.

However, unlike Elio Motors, Tesla has built and delivered tens of thousands of cars, Paul Elio pointed out, whereas his own firm hasn’t yet even finished the 25 final engineering prototypes it must complete, let alone a single production vehicle.

Unpaid vendor and committed suppliers

Elio wouldn’t identify the unpaid vendor, but he said the amount in dispute was “relatively minor” compared to the financial commitments to the project made by some very large vendors in terms of engineering and equipment costs.

For example, Aisin, which will be supplying the Elio trike’s five-speed manual and automated-manual transmissions, committed $36.6 million to the project. Linamar will be in charge of engine assembly at the Shreveport plant and has said it will provide $45 to $50 million in general manufacturing equipment to support production. And Hyundai DYMOS will supply seats from a satellite assembly line in the Shreveport plant. That supplier has committed $1.8 million for needed equipment and renovations.

Primary investor doubles down

Elio pointed to another section of the annual report that stated Stu Lichter — the company’s primary backer, real estate broker, and holder of the lease on the Shreveport factory — “advanced” Elio Motors over $6,250,000 since the start of 2016.

Additionally, Lichter recently purchased $200,000 worth of Elio Motors common stock at $5.98 a share.

None of that reduces the $376 million Elio Motors needs to raise if it has any chance of starting production by the end of 2017, a date pushed back so many times that many of Elio’s 64,000 or so reservation holders simply don’t believe it anymore — or any of Paul Elio’s other promises.

Marked for death?

It may be time for an Elio Motors Death Watch, but it won’t be because Paul Elio is a scam artist.

Instead, Paul and his associates, for all their previous experience in the auto industry, may have simply failed to accurately estimate how long it was going to take to develop their vehicle, and how much money it was going to take to get it to series production.

One could understand it if Paul Elio threw in the towel, but he’s not giving up on his three-wheeled dream just yet.

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2 of 32 comments
  • Voyager Voyager on May 10, 2017

    Let's face it. If Musk had his mind set on bringing three-wheelers, the whole venture would have been further. In many respects, what Musk did, is much more difficult.

  • Wumpus Wumpus on May 13, 2017

    Has he considered exporting to Germany? There's some sort of set of regulations that make it worth converting Golfs into three-wheelers. Might work if you need margins. $100M in the hole, before tooling up? I suspect you were paying consultants as fast as you could.

  • SCE to AUX "Volvo has suggested it’s capable of yielding 275 miles of range"Every non-US car's range estimate is based on WLTP - worth mentioning.EPA range never 'backs up' WLTP; it's always about 15% lower - so figure maybe 234 miles. Not great, except as a commuter.As for the interior - it's obviously a Model 3 clone, but the screen is substantially smaller. Incidentally, I suspect Tesla made the Model 3/Y interior so minimalist to save money - not just to be different. When you're trying to become profitable on EVs, every dollar counts.
  • Dukeisduke I know it really isn't, but the central display looks like it's being held by one of those cheap spring-loaded mobile phone mounts. Poor interior design.
  • Fred Remember when radios were an option? Do you know you can use your phone to listen to any radio station in the world? This is just a whole waste of time.
  • Pig_Iron ASTC 3.0 AM radio was successfully demonstrated at CES. It is a common standard shared with terrestrial television, so the audio equipment is commonized for broadcasters. And no royalty fees to pay, unlike HDRadio which has been a less than stellar success. 📻
  • Art Vandelay Crimes that are punished with fines encourage abuse by those enforcing them. If it is truly dangerous to the public, maybe jail or give the offenders community service. People’s time tends to be very valuable to them and a weeks lost work would certainly make a high earner think twice. If it isn’t a big danger why are police enforcing it (outside of raising money of course). Combine it with a points system. When your points are gone you do a week imitating Cool Hand Luke.