Financing Elio Motors Development And Production

[RUCRAYZE]

1. You have to 'buy' the factory *before* you can make the first unit.
2. You have to 'buy' parts for all 40,000 *before* you can sell any of the 40,000 (sorta).
3. You have to start paying the folks putting then together *before* the first unit can be built and sold.

Maybe you'd mike 40M profit or maybe not. But you have to cover the expenses of making that profit *before* you can make it.

Or something like that. Up front costs for this undertaking are pretty large. 1B sounds reasonable to get a quick ramp up in production numbers. With less than 1B you couldn't ramp up as fast. If you can't ramp up fast enough then you probably wouldn't be able to meet 6800 price.

My .02 .

Q- if anybody has any idea, how much did tesla get going with??

 

[Kuda]

Q- if anybody has any idea, how much did tesla get going with??[/QUOTE]

http://www.forbes.com/sites/joannmu...ll-alive-and-other-green-car-companies-arent/

 

[genebee]

1. You have to 'buy' the factory *before* you can make the first unit.
2. You have to 'buy' parts for all 40,000 *before* you can sell any of the 40,000 (sorta).
3. You have to start paying the folks putting then together *before* the first unit can be built and sold.

Maybe you'd mike 40M profit or maybe not. But you have to cover the expenses of making that profit *before* you can make it.

Or something like that. Up front costs for this undertaking are pretty large. 1B sounds reasonable to get a quick ramp up in production numbers. With less than 1B you couldn't ramp up as fast. If you can't ramp up fast enough then you probably wouldn't be able to meet 6800 price.

My .02 .

Companies don't buy anything anymore.
The factory is leased
They don't lease warehouse space to inventory all those parts, they use on-time delivery (only enough parts for the day, week, or month.
Tooling is also leased.
Even workers pay is deferred by at least a week.
The been counters are the ones dictating much of how a company is run. GB

 

[Charlie G]

Personally from everything I know that I can talk about publicly, and some news I know that I can't share yet, I still believe that at this point the 3rd qtr is possible but definitely very tight.

What I can say is that reservations should not be an issue over the fourth quarter of this year should have plenty of good news to share.

So cryptic - I'm picturing you rummaging through Paul's trash with a flashlight and notepad.

 

[RogWild]

Have you considered that EM has been truthful and realistic however things have just not worked out the way they planned?...
Maybe the 3rd QTR of 2015 still is possible as we don't know all the details and maybe it is not at this point...

First, I'm not sure where you got that Elio Motors did not have the Shreveport Plant until 1 May 2014, when
“Elio responded on Facebook just a bit short of an hour ago 04/11/2014: Yes, we have secured the plant in Shreveport, LA. “
So, do YOU believe it is 'realistic' for Elio Motors to BUILD & TEST 25-30 :"E" Series vehicles (with IAV engines), given the current state of their 'progress', and that Technosports Creative took 3-4 months to make the P4? If not, do you think it is still 'honest' for Elio Motors to keep saying they are "ON TRACK" to meet their 3rd Qtr 2015 projection? Keeping in mind that there has been a 4 Month delay in getting the cast engine parts 'machined' (possibly not even finished yet), and no word that the START of the prototypes has begun.
.

 

[RogWild]

Companies don't buy anything anymore.
The factory is leased
They don't lease warehouse space to inventory all those parts, they use on-time delivery (only enough parts for the day, week, or month.
Tooling is also leased.
Even workers pay is deferred by at least a week.
The been counters are the ones dictating much of how a company is run. GB

According to several Elio Motors statements, they purchased the GM tooling, and owned it..... even before the building lease was signed.
"
Elio Motors
1. When GM abandoned the plant, they left the necessary production tools behind. They are in our possession, and we have not fully started tooling the plant at this time." The 'Engine Making' tooling will be an added expense.

 

[Smitty901]

Those of us that have put down cash up front are a very important part of ELIO Financing. While so far it does not add up to much at this point cash is cash. And the support may be worth much more

 

[goofyone]

First, I'm not sure where you got that Elio Motors did not have the Shreveport Plant until 1 May 2014, when
“Elio responded on Facebook just a bit short of an hour ago 04/11/2014: Yes, we have secured the plant in Shreveport, LA. “
So, do YOU believe it is 'realistic' for Elio Motors to BUILD & TEST 25-30 :"E" Series vehicles (with IAV engines), given the current state of their 'progress', and that Technosports Creative took 3-4 months to make the P4? If not, do you think it is still 'honest' for Elio Motors to keep saying they are "ON TRACK" to meet their 3rd Qtr 2015 projection? Keeping in mind that there has been a 4 Month delay in getting the cast engine parts 'machined' (possibly not even finished yet), and no word that the START of the prototypes has begun.
.

From what I know EM only needs to get the first of the E-series vehicles completed by the end of this year in order to meet their 3rd Qtr 2015 projection so I can reiterate my earlier comment about the schedule being tight however 3rd Qtr 2015 is still possible. Frankly from what I know I don't even need to change that opinion unless we dont see anything about the engine and P5/E0 by about mid November and we don't hear about further E-series builds by the end of the year.

Where did you see that it took Technosports 3-4 months to complete the P4? The fact is that they began building the bare P4 frame at the beginning of December 2013, started covering it on their blog two plus weeks later on December 18, 2013 and it was completed for the reveal on January 18, 2014 which is only about six weeks from start to finish. Also this was a nearly completely hand built prototype which is important as the P5 will be built using many parts from EM's OEM suppliers so it should go together even faster. After that the rest of the E-Series should move even faster as Technosports will dedicate more staff than they would to just building one vehicle and they are expected to be built from complete sub-assemblies which will make them go together even faster. This methodology of building the E-series using factory style assembly steps was mentioned way back in Tech Talk v5.

We know that EM was not lying when they made the statement on 4/11/2014 that they had a plant secured in Shreveport, LA however they were also not telling the whole story. We now know that the lease on the former GM plant was not active at that time however there was an active backup plan where if the former GM plant was leased to someone else EM would move all the equipment which they had already secured in a separate deal to another nearby location, a former AT&T building on Mansfield Road.
Video with confirmation from Caddo Parish that IRG lease is active as of May 1:
http://www.arklatexhomepage.com/sto...ng-elio-in-caddo/23000/Diub24NitE6yUTC-RFbyTQ
Information about the AT&T building backup plan:
http://www.ktbs.com/story/25697775/elio-motors-delays-production-almost-lost-shreveports-gm-plant

 

[goofyone]

From what I know EM only needs to get the first of the E-series vehicles completed by the end of this year in order to meet their 3rd Qtr 2015 projection so I can reiterate my earlier comment about the schedule being tight however 3rd Qtr 2015 is still possible. Frankly from what I know I don't even need to change that opinion unless we dont see anything about the engine and P5/E0 by about mid November and we don't hear about further E-series builds by the end of the year.

For anyone wondering about this timeline this is based on something I was told that I can actually share. The exact parts for production need to be finalized about 3 months prior to production to give the suppliers time to finalize their assembly process in order to deliver these final parts on time. Also EM needs about six months or so of testing to finalize the hardware parts selection process. This is 9 months total so as long as they have the first E-series vehicles by the end of this year they have a shot of getting production online by the end of the 3rd quarter of 2015 even if it is a tight schedule. Software programming and tuning can continue pretty much until production starts up.

So knowing this timeline if we know that a running P5/E0 exists by mid-November and the production of the E-series is underway by the end of the year then this is what we need to see and if we don't then we have an issue which likely means another production delay. So everyone should just relax a bit and enjoy the ride as we still have two months or so before mid-November and the first trouble sign deadline.

 

[JEBar]

makes sense .... hopefully things will go smoothly

Jim