Disturbing

[Rickb]

EM has an excellent vehicle Concept, a carefully planned and executed marketing strategy, and 43,000 reservationists that have reasonable belief in EM having a shot, which total 43,000 reasons and incentive for automotive supply companies to partner with EM. I doubt they have vested financial interest at this point other than verbal interest in suppling parts if or when needed. The automotive supplier partners have nothing to lose.

EM has stated they need $300 million to achieve production status and I have no reason to doubt them. They have raised only a fraction of that amount to date. The P5 unveil and the P6-30 that follow should provide the momentum to get them where they need to be funding wise.

 

[Jim H]

This disturbing item in USA TODAY.

Suspicious news.

From USA TODAY Ex-GM plant idle awaiting radical 3-wheel car SHREVEPORT, La. -- Shreveport's former General Motors Assembly Plant could soon be spinning textiles even if it never boots up its vehicle assembly lines to make an unusual three-wheeled car. A company called the Gulf Coast Spinning Company will relocate to the shuttered factory even though a startup automaker, Elio Motors, has been taken space in the same facility. Elio Motors rents approximately 1.5 million square feet of the former GM assembly plant from industrial developer Stuart Lichter which holds the lease to the 4.1 million square foot building. Elio Motors did not respond to multiple requests for interviews. Licter, president and board chairman the Industrial Realty Group, also sits on Elio's board. He also did not respond to an interview request. Onno Steger, IRG's real estate director, said he could not speak about Elio or Gulf Coast Spinning Company. http://usat.ly/1MwkiaW Get USA TODAY on your mobile device: http://www.usatoday.com/mobile-apps Jim and Marybeth Planck

Jim, welcome to the forum where members will share their opinions and expertise and provide factual information to many of the myths and rumors at frequently appear. Enjoy the Elio experience and the wait with us.

 

[Smitty901]

I have skin in the game. $500 which is what I could afford to risk. When my Elio is ready, i, like you, will pay the balance. I shouldn't, perhaps, have been quite so direct with you, but your ill-manners have gotten on my nerves for some time. What's in it for you to be mean-spirited and cynical? How does it help the group? What does it do to improve your life or other people's?

Have a lovely day.

Come on step up man. There is no risk PE has it all worked out every thing is right on track no problems at all.
No risk at all heck you could make money on the deal put your cash up then sell your first ELIo for a profit.
It is easy to talk smart from the back of the room.

 

[Ekh]

EM has an excellent vehicle Concept, a carefully planned and executed marketing strategy, and 43,000 reservationists that have reasonable belief in EM having a shot, which total 43,000 reasons and incentive for automotive supply companies to partner with EM. I doubt they have vested financial interest at this point other than verbal interest in suppling parts if or when needed. The automotive supplier partners have nothing to lose.

EM has stated they need $300 million to achieve production status and I have no reason to doubt them. They have raised only a fraction of that amount to date. The P5 unveil and the P6-30 that follow should provide the momentum to get them where they need to be funding wise.

$300 milion to actually begin production. I agree with others, that may be a tad high. Accroding the the SE pitch, they have raised $70 million so far, have $290 million worth of pre-orders. That is significant assets. Ty saw a forklift being unloaded outside the plant the other day, which suggests that they have sold at least some of the surplus equipment and need to move it out. (The forklift was real, but the reason is my speculation). We don't in fact know how the sale of surplus equipment is actually going -- or not going.

In addition to the $70 million raised so far, they have generated an unknown number of millions from private placement (section 506, I believe), and look to have $23 million in credible expressions of interest -- the obvious frauds having been weeded out.

All told, while they do need many millions more to get where we all want them to go, the old saw is true: the more you have, the easier it is to get even more. So Elio is struggling, but they're smart, determined, and may well succeed in the long run. But don't tie them to a particular month or even year -- that depends at this point on money, not on technical development.

 

[Rickb]

$300 milion to actually begin production. I agree with others, that may be a tad high. Accroding the the SE pitch, they have raised $70 million so far, have $290 million worth of pre-orders. That is significant assets. Ty saw a forklift being unloaded outside the plant the other day, which suggests that they have sold at least some of the surplus equipment and need to move it out. (The forklift was real, but the reason is my speculation). We don't in fact know how the sale of surplus equipment is actually going -- or not going.

In addition to the $70 million raised so far, they have generated an unknown number of millions from private placement (section 506, I believe), and look to have $23 million in credible expressions of interest -- the obvious frauds having been weeded out.

All told, while they do need many millions more to get where we all want them to go, the old saw is true: the more you have, the easier it is to get even more. So Elio is struggling, but they're smart, determined, and may well succeed in the long run. But don't tie them to a particular month or even year -- that depends at this point on money, not on technical development.

I agree, but I do tie EM to the particular month or week of the P5 unveil. If that technical development doesn't happen within the 20 week time frame I will have serious issues. I currently have a small issue in that EM hasn't provided P5 updates. A simple the build is going well and ahead of schedule announcement would work for me.

The discussion of possible funding alternatives is meaningless to me at this point in time. Waiting for funding alternatives to kickstart progress has been on EM's table for a long time. Serious investors and I believe even the DOE ATVM loan approval committee needs to see a finalized engine running complete production Elio prototype before any of that $300 Million in additional funding is received. I could be wrong.

 

[Ekh]

I agree, but I do tie EM to the particular month or week of the P5 unveil. If that technical development doesn't happen within the 20 week time frame I will have serious issues. I currently have a small issue in that EM hasn't provided P5 updates. A simple the build is going well and ahead of schedule announcement would work for me.

The discussion of possible funding alternatives is meaningless to me at this point in time. Waiting for funding alternatives to kickstart progress has been on EM's table for a long time. Serious investors and I believe even the DOE ATVM loan approval committee needs to see a finalized engine running complete production Elio prototype before any of that $300 Million in additional funding is received. I could be wrong.

Right on. Except, the 300 million isn't what's needed NOW. It's 300 million minus what is on hand and coming in. I understand, though might be wrong, that 300 million is the total cost from inception to car out the door.

 

[WilliamH]

I agree, but I do tie EM to the particular month or week of the P5 unveil. If that technical development doesn't happen within the 20 week time frame I will have serious issues. I currently have a small issue in that EM hasn't provided P5 updates. A simple the build is going well and ahead of schedule announcement would work for me.

The discussion of possible funding alternatives is meaningless to me at this point in time. Waiting for funding alternatives to kickstart progress has been on EM's table for a long time. Serious investors and I believe even the DOE ATVM loan approval committee needs to see a finalized engine running complete production Elio prototype before any of that $300 Million in additional funding is received. I could be wrong.

I don't know exactly what the start date is, by assuming (yes, I know what that does to me) a start date of July 1 we would be looking at just about Thanksgiving. And lets hope we have something to be thankful for other than our beautiful country.

 

[Elf]

Not disturbing at all, just very poor research by the reporter. The plant has about 4 million square feet. Elio only leases1.5 million of that. It has always been the intention to lease the rest of the plant to other companies. This is really a non story.

1.5 million square footage is a LOT of space to produce a vehicle with a simple concept .Your post is very correct

 

[satx]

Right on. Except, the 300 million isn't what's needed NOW.

... sounds like what's needed now is $200M minimum

 

[Coss]

... sounds like what's needed now is $200M minimum

What's really needed now is for EM or PE to announce what the new balance needed is.
It was $240mil before, since then they have had more reservations, the crowd funding program, the one other investment program, and so on.
An updated "funds needed" would really quiet a lot of people. I believe it to be near $130mil to $160mil but that's just a wild imagination guess.