Tesla and its contractors have settled with foreign workers over injuries and low wages. Earlier this year, The Mercury News published a report about workers brought in from Slovenia to build a new paint shop at Tesla's Fremont factory. One worker sued over an injury, and the report claimed that the Slovenian workers were only paid $5 an hour. Tesla responded to the report by promising to make things right, and now the automaker and its contractors have settled the suit for $550,000. Read more from Electrek.

Tesla has installed its first Supercharger station in the Czech Republic (Czechia?) alongside multiple other charging standards. Split into two lanes, the E.ON station offers six Supercharger stalls on one side, with CHAdeMo (capped at 50 kW), CCS (also 50 kW) and Level 2 charging (22 kW) on the other. Located in Humpolec, the station services highway E-50 connecting Prague to Brno. With no Tesla stores or service centers in the country, this Supercharger marks the electric automaker's first official Czech presence as it expands its charging network across Europe. Read more from The Country Caller.

Paul Elio, CEO of Elio Motors, addressed the Securities and Exchange Commission (SEC) in favor of Regulation A+. Elio used its Reg A+ offering to raise funds for prototypes and testing of its three-wheeled car. "The single-biggest hurdle in creating Elio Motors was attracting capital," says Paul Elio. "This is absolutely key to our continued success. Reg A+ put us over the hump." Elio also says that Reg A+ operates in the original spirit of Wall Street, when "the equity markets were a place for companies to raise capital, not a place for venture capitalists and private equity firms to cash out their winnings." Since its Reg A+ fundraising, Elio began public trading on the OTCQX market. Read more in the press release below.
Show full PR text

Elio Motors CEO to SEC Panel: Regulation A+ Can Help Bring Wall Street Back to Its Roots

Crowdfunding Investment Policy Helps Companies Find Needed Capital, Provides Greater Opportunity for Small Investors

WASHINGTON, July 20, 2016 /PRNewswire/ -- Regulation A+ (Reg A+) is an important strategy for companies to raise capital at critical junctures of their growth, according to Paul Elio, founder and CEO of startup vehicle manufacturer Elio Motors, Inc. (OTCQX: ELIO), which plans to build a $6,800, three-wheeled vehicle in the U.S. capable to achieving up to 84 mpg.

Elio made his remarks yesterday in a presentation to the Securities and Exchange Commission (SEC) Advisory Committee on Small and Emerging Companies (ACSEC). As part of the ACSEC program, the SEC Division of Corporate Finance also delivered an update on the utilization of Reg A+.

Reg A+ is an initiative made possible under Title IV of the 2012 Jumpstart our Business Startup (JOBS) Act, which paved the way for private companies to raise up to $50 million from non-accredited investors.

"The point of the equity markets has gotten lost. In the 1700s, when people were trading securities underneath a tree at the corner of Broad and Wall [Streets], the equity markets were a place for companies to raise capital, not a place for venture capitalists and private equity firms to cash out their winnings," Elio said. "I think Reg A+ has a chance to bring it back to its roots, where equity is about a place for companies to find capital – to start and to expand."

Elio Motors is using a portion of the nearly $17 million it raised in a public offering through Reg A+ to build 23 prototypes for use in testing and validation. Elio said the funding raised in the Reg A+ process was critically important in helping the company get to this development stage. Elio introduced the company's first E-Series test vehicle – dubbed the E1A – at an event in Livonia, Mich., last month, which he called "an event brought to you by Reg A+."

After completing the Reg A+ raise, Elio Motors proceeded to list its shares on the OTC Markets, making it the first crowdfunded security to go from public solicitation under Reg A+ to a publicly traded security. The company has raised nearly $100 million total to date from various sources.

"The single-biggest hurdle in creating Elio Motors was attracting capital. This is absolutely key to our continued success. Reg A+ put us over the hump," Elio said, referring to the fact that the company is now attracting the attention of institutional investors.

The company also continues to gain grassroots support, as more than 55,000 people have made reservations for an Elio.

Help us improve our comments.
Share This Photo X