The Louisiana Motor Vehicle Commission has accused and charged Elio Motors with breaking Louisiana law by operating as a car dealer without a license. Elio's lawyers argued that their pre-order practice isn't illegal because customers are buying a spot in line and the company doesn't guarantee actual sale.

The commission determined that company's use of words like 'buy', 'sale' and 'own' on their website and in their advertising contradicts that stance and fined the company 545 thousand dollars. Originally, the commission was going to fine Elio over 7 million dollars but voted that the figure was too high.

The company will have to get the proper licenses or be subject to more fines and penalties. Elio can appeal the decision but has not announced whether or not they will do so.