Elio Motors’ affordable three-wheeler was originally going to hit the market in 2014 and almost three years later, is still absent from the streets. Now we have a clear idea why.
In a filing to the U.S. Securities and Exchange Commission, the company founded in 2009 by Paul Elio revealed that as of September 30, 2016, it had just $101,317 in the bank and $123,212,431 in accumulated deficit. By comparison, it had $6,870,044 in cash as of December 31, 2015 and just a $2.325 million deficit, as reported by KTBS.
Elio Motors blames the skyrocketing deficit on an increase in accounts payable and interest payable as well as a decrease in assets held for sale and an increase in the fair value of derivative liability.
The filing also reveals that in the nine month period ending September 30, 2016, the company’s net loss sat at $34,787,000 million compared to the $13,873,656 it lost in the same time period in 2015.
The company unveiled its production-spec E1c three-wheeler in November last year. Targeting an MSRP of $7,300, the vehicle features a unibody frame and includes three airbags.
It is reported that over 62,000 customers have signed up for a three-wheeler Elio but unless the company gets its finances together, the venture could be one of the most high-profile automotive busts in recent memory.