Earlier this month, Elio Motors announced that it aimed to raise up to $100 million as part of a proposed public offering—and the company’s latest report to the U.S. Securities and Exchange Commission shows the funding is sorely needed: Elio has $40,000 in cash remaining, according to the company’s semiannual report.
Elio has spent 2017 with limited access to cash, having earlier furloughed numerous employees and cutting expenses across the board. The company hasn’t been shy to admit it needs a significant influx of funding to launch production of its three-wheeled autocycle, dubbed The Elio. With the restricted access to funds, the company had to delay production of The Elio again to the end of 2019.
Elio’s filing lays out the significant cost cuts that have been implemented over the last several months:
- Engineering, research and development costs decreased from $10.5 million to $1.18 million, about 90 percent less compared to the end of 2016
- General and administrative expenses decreased 53 percent over the same timeframe, to $1.9 million
- Sales and marketing decreased from $2.8 million to about $880,000, a roughly 76 percent drop.
Elio’s plan entails producing a futuristic three-wheeled vehicle, which the company claims can net up to 84 miles per gallon, at a former General Motors factory in Caddo Parish, Louisiana. The price-point for the car is set at $7,450, up from the original target of $6,800.
A spokesperson for Elio didn’t immediately respond to a request for comment.