Borrow $240 Mil, Or Borrow Alot Less And Start Out Slow?

[archer5013]

Real world 240 million is not big money anymore. Elio needs to produce a large number of cars to make it

At their anticipated profit per unit, that's about 240,000 Elio autocycles, right near their projected yearly output at full production.

 

[archer5013]

Or is it the price Elio paid for the surplus equipment? G1 probably will follow up.

Thank you Eddie, I didn't remember the amounts for the surplus equipment (or the total spent on all the equipment), I'll have to go look it up.

 

[eliothegreat]

None of us really know what we are talking about, it's all pure conjecture at this point and fun to discuss. I pictured the engine being built in Germany and shipped as a complete unit for installation. The other components are mostly off the shelf items that vendors are already making for other auto manufacturers. One of the possible reasons EM hasn't built additional prototypes is that they haven't finalized the final product. This may be due to specific parts sourcing and the fact that EM has not crashed tested one to see for sure that the design will have a high crash rating. Respectfully, Just my 2 cents.

You, too, seriously underestimate the intelligence, capabilities, and experience of the people you talk to. Admitting that you don't know what you are talking about is humility. Accusing everyone else of the same is arrogance.

While we may not have access to all the details and minutiae of this project, there has been enough time and enough information to draw up a limited set of reasonable conclusions. Obviously, they haven't finalized the final product. There is a great dealt of room for doubt as to whether they have even fully designed the final product. They claimed in early 2013 that all of the R & D was complete, but that clearly was not the case.

The 500 pound gorilla in the room is the funding issue, but the room is still full of other full-grown gorillas after that one is taken down.

 

[eliothegreat]

Elio has reported that the equipment cost $26-30M. IIRC, the entire amount was financed, and payments were to begin last fall. $300k/mo or $300k/quarter comes to mind for some reason, but my memory may be off on the amount of the payments. At one point, Elio was projecting $70M from the sale of the surplus equipment, which would pay off the lien and net about $40M. I haven't seen any reports on the progress of the ebay sale since the first few weeks. At that point, total sales were under $20k, perhaps way under. I haven't seen any reports as to what Comau many have sold outside of ebay.

 

[WilliamH]

I don't understand why everyone keep trying to look at sources of funding as either / or.
PE explained it would be foolish to rely on only one source.
So here it is. In his words

From about 7:30 to about 9:00
ATVM
Crowd Funding
506C
Democratizing Equity Investment
Selling off old equipment.

 

[Rickb]

Elio has reported that the equipment cost $26-30M. IIRC, the entire amount was financed, and payments were to begin last fall. $300k/mo or $300k/quarter comes to mind for some reason, but my memory may be off on the amount of the payments. At one point, Elio was projecting $70M from the sale of the surplus equipment, which would pay off the lien and net about $40M. I haven't seen any reports on the progress of the ebay sale since the first few weeks. At that point, total sales were under $20k, perhaps way under. I haven't seen any reports as to what Comau many have sold outside of ebay.

Taken from Caddo Parrish Meeting Minutes:
August 2, 2013

May 20th, 2014

 

[Chris F]

Form D doesn't require a use of proceeds, just disclosure of payments to brokers and affiliates. The private placement materials will disclose that, but they are not available to the public.

 

[WilliamH]

You, too, seriously underestimate the intelligence, capabilities, and experience of the people you talk to. Admitting that you don't know what you are talking about is humility. Accusing everyone else of the same is arrogance.

While we may not have access to all the details and minutiae of this project, there has been enough time and enough information to draw up a limited set of reasonable conclusions. Obviously, they haven't finalized the final product. There is a great dealt of room for doubt as to whether they have even fully designed the final product. They claimed in early 2013 that all of the R & D was complete, but that clearly was not the case.

The 500 pound gorilla in the room is the funding issue, but the room is still full of other full-grown gorillas after that one is taken down.

............"While we may not have access to all the details and minutiae of this project, there has been enough time and enough information to draw up a limited set of reasonable conclusions."..............

Unfortunately, those are called assumptions. And we know what "assume" does to us.

 

[Rickb]

I don't understand why everyone keep trying to look at sources of funding as either / or.
PE explained it would be foolish to rely on only one source.
So here it is. In his words

From about 7:30 to about 9:00
ATVM
Crowd Funding
506C
Democratizing Equity Investment
Selling off old equipment.

'Either/or' will end up as 'one or the other' or maybe 'all or none'. Hope for the best, plan for the worst.

 

[WilliamH]

Taken from Caddo Parrish Meeting Minutes:
View attachment 5359

View attachment 5360

Please tell us what meeting those minutes are from.