Elio again delays delivery dates; says vehicles may have defects

(KSLA) - Elio Motors now says it will be 2019 before the company starts delivering its 3-wheel vehicles to its customers.

And the startup vehicle manufacturer says there is no guarantee everything will be in working order when the vehicles are delivered.

"Our production vehicles may contain defects in design and manufacture that may cause them not to perform as expected or that may require repair," the company says in its latest SEC filing.

"While we have performed extensive internal testing, we currently do not have a frame of reference by which to evaluate the performance of the Elio in the hands of our customers. There can be no assurance that we will be able to detect and fix all defects in the vehicles prior to their sale to consumers.

"We may experience recalls in the future, which could adversely affect our brand in our target markets and could adversely affect our business, prospects and results of operations."

The SEC filing also says the deadline for Elio Motors to meet its commitment to create 1,500 jobs at the former General Motors plant in west Shreveport has been extended to Sept. 1, 2019.

And there has been an increase in the vehicle's targeted base price. It now is $7,450 as opposed to the original $6,800.

Elio Motors issued a statement Thursday about a proposed public offering saying it intends to list its stock on the NASDAQ global market in an effort to raise $100 million.

Investing in the company's common stock involves a high degree of risk, the company says in its SEC filing.

Among risk factors, it says: "The Elio vehicle requires significant investment prior to commercial introduction and may never be successfully developed or commercially successful."

The company also notes that it has "a history of losses and we expect significant increases in our costs and expenses to result in continuing losses for at least the foreseeable future."

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