Elio Motors gets a $2.5 million lifeline from Overstock.com
Elio Motors gets a $2.5 million lifeline from Overstock.com

Elio Automobiles confirmed off its quirky, extremely gasoline-efficient, and cheap 3-wheeled car long ago at CES 2015, however the startup has struggled mightily for the reason that. Nowadays, it has gained a little bit of a lifeline. On-Line retailer Overstock.com introduced that it ’s shopping for $2.5 million of newly issued shares of Elio ’s not unusual inventory. (Elio stocks are traded at the OTC marketplace.) the money will, in part, help repay Elio Motors ’ “outstanding debt and money owed payable.”

Elio Cars also introduced as of late that it’s going to launch a token-primarily based providing referred to as ElloCoin so as to fund production, which it still plans to get rolling in 2019. as opposed to an initial coin offering, or “ICO,” the company will launch a “security token providing” facilitated by means of JonesTrading, with the tokens simplest to start with to be had to “accredited traders.”

Elio Cars needs money — a number of money

For some time, the pitch for the Elio Automobiles three-wheeler proved to be a beautiful one. Around 65,000 shoppers positioned down a reservation, which value any place among $ONE HUNDRED and $1,000. THE CAR, which the company just calls Elio, forces consumers to business the luxurious and comfort of a extra customary-sized automobile. However in return, they get one who promised as much as 84 miles in step with gallon for under $EIGHT,000.

Not Like such a lot of the opposite futuristic or environmentally aware car startups that manifest at CES, Elio patrons may just still refill their trip at a standard fuel station. Unfortunately for Elio Automobiles, it still bumped into a lot of the same problems as those other automotive startups. the company had bother elevating the hundreds of hundreds of thousands it believed it needed for production, which ended in a prolong. At the similar time, Elio Vehicles temporarily burned through the cash it had raised. the company had mere heaps of bucks in the financial institution final summer with debts totaling in the tens of hundreds of thousands. Elio Vehicles had to furlough a “significant slice” of its group of workers to stick afloat because it looked for round $ONE HUNDRED million in investment.

Elio Vehicles has a rent on an old GM manufacturing facility in Shreveport, Louisiana, however its loss of funding (and due to this fact lack of paintings) ended in tension with the group there, consistent with a late 2017 investigation via Jalopnik.

Despite the company ’s troubles, that authentic promise — a small, cheap automobile with big MPG — turns out to be what wooed Overstock.com into making an investment, consistent with the press unlock. Founder and CEO Patrick Byrne said he “used to be in awe” after just 5 mins within the car. “i am assured that this may occasionally grow to be my automobile for at least two-thirds of the times I pressure,” he stated. Byrne also mentioned he believes in Elio Vehicles ’ imaginative and prescient, calling the car “a win for America.”

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