Elio Motors A Billion Dollar Company

[imabass]

Keep in mind that the billions did not drop into the companies checking account. The company only received cash for the original offer price of $12-14/share. The subsequent run up in value is money that ended up in the initial investors pocket. Also this is very thinly traded therefore only a few trades will drastically change the share price. Also the vast majority of the ownership is owned by a few people. As they sell off subsequent buckets of shares, this money goes into the pockets of the investors. Only to the extent that new shares are created, these would result in more startup funds to the company but at the expense of diluting the existing owners.

As I looked into the recent filings, I was alarmed that they do not really have much cash flow and maybe not enough to get this thing off the ground. They are in default with their bank loans and are currently paying 18% interest on their debt.

I hope they get off the ground because i would like to see these cars on the road and I would love to have one in my driveway.

 

[Aprilia]

Keep in mind that the billions did not drop into the companies checking account. The company only received cash for the original offer price of $12-14/share. The subsequent run up in value is money that ended up in the initial investors pocket. Also this is very thinly traded therefore only a few trades will drastically change the share price. Also the vast majority of the ownership is owned by a few people. As they sell off subsequent buckets of shares, this money goes into the pockets of the investors. Only to the extent that new shares are created, these would result in more startup funds to the company but at the expense of diluting the existing owners.

As I looked into the recent filings, I was alarmed that they do not really have much cash flow and maybe not enough to get this thing off the ground. They are in default with their bank loans and are currently paying 18% interest on their debt.

I hope they get off the ground because i would like to see these cars on the road and I would love to have one in my driveway.

Very good observations!

Most Elio supporter's seem to ignore the actual published financial data... but the truth is...Elio is on very shaky financial ground...

It's a great concept...and I hope they succeed...I sent them $1,000 of my money in late 2013...

My opinion is that Elio will have to scale back his annual production forecasts...and raise the base price...

I support Paul...and hope he can reach the production phase!

 

[NSTG8R]

Very good observations!

Most Elio supporter's seem to ignore the actual published financial data... but the truth is...Elio is on very shaky financial ground...

It's a great concept...and I hope they succeed...I sent them $1,000 of my money in late 2013...

My opinion is that Elio will have scale back their annual production forecasts...and raise the base price...

I support Paul...and hope he can reach the production phase!

I get everything you've been saying, except scaling back their annual production forecasts [raise the base price...probably].

Granted, I work on an aircraft assembly line which couldn't be more different, mainly due to the complexity and tolerance/quality requirements. But a member here, Ty I believe, is an expert in the field and actually worked at the GM plant in Shreveport some time ago [not that it matters which plant he worked at], and he seemed pretty certain that the production numbers [forecast] lined up with what the line(s) were capable of producing.

So I'm curious how you think "scaling back production forecasts" will help.

 

[Aprilia]

I get everything you've been saying, except scaling back their annual production forecasts [raise the base price...probably].

Granted, I work on an aircraft assembly line which couldn't be more different, mainly due to the complexity and tolerance/quality requirements. But a member here, Ty I believe, is an expert in the field and actually worked at the GM plant in Shreveport some time ago [not that it matters which plant he worked at], and he seemed pretty certain that the production numbers [forecast] lined up with what the line(s) were capable of producing.

So I'm curious how you think "scaling back production forecasts" will help.

I could be right...I could be wrong...flip a coin!

I just can not get my head around the need to produce 250K annual units...I'm not sure I see that kind of demand...

Over production has always been an "Achilles' heel for the automobile industry...

I've been an entrepreneur my whole life...and I stumbled hard several times...the problems occurred when I expanded too fast...finally I learned to control the rate of growth...and my business prospered beyond my wildest dreams...

My grandmother always said "Never get to big for your britches"!

No one will agree with me...but I actually believe that less than half of the 50K reservation holders will ever compete the purchase of an Elio vehicle...

 

[NSTG8R]

I could be right...I could be wrong...flip a coin!

I just can not get my head around the need to produce 250K annual units...I'm not sure I see that kind of demand...

Over production has always been an "Achilles' heel for the automobile industry...

I've been an entrepreneur my whole life...and I stumbled hard several times...the problems occurred when I expanded too fast...finally I learned to control the rate of growth...and my business prospered beyond my wildest dreams...

My grandmother always said "Never get to big for your britches"!

No one will agree with me...but I actually believe that less than half of the 50K reservation holders will ever compete the purchase of an Elio vehicle...

Gotcha! I mistook your reasoning on scaling. Makes sense now.

 

[Aprilia]

Gotcha! I mistook your reasoning on scaling. Makes sense now.

Thanks!

Please understand it's just my own personal opinion...

 

[NSTG8R]

Thanks!

Please understand it's just my own personal opinion...

Hey. Everything said here about EM is just that. Personal opinion [until Paul joins in ].

 

[slinches]

Everyone is entitled to their opinion, but I tend to put more weight in those backed up by numbers, facts and hard logic. Not that you have to answer, Aprilia, but what reasoning do you use to come up with a prediction of less than 50% follow through on reservations? If it's just "gut feel" that's fine, especially as you're clearly stating it as an opinion. Although, if it's based off of relevant experience, I'm sure we'd all be interested to hear about it.

 

[bowers baldwin]

I could be right...I could be wrong...flip a coin!

I just can not get my head around the need to produce 250K annual units...I'm not sure I see that kind of demand...

Over production has always been an "Achilles' heel for the automobile industry...

I've been an entrepreneur my whole life...and I stumbled hard several times...the problems occurred when I expanded too fast...finally I learned to control the rate of growth...and my business prospered beyond my wildest dreams...

My grandmother always said "Never get to big for your britches"!

No one will agree with me...but I actually believe that less than half of the 50K reservation holders will ever compete the purchase of an Elio vehicle...

So Elio gets to keep the reservation money, from that point of view it's a win/win for Elio.

 

[RUCRAYZE]

So has anyone stepped up and shared the big gains from selling their shares.?? (of course you could B.S. and that too would make my day) !
Take their profit and gone 1k all in for an additional unit (ya only need 5.3k profit for free base model (yea I know S&H tax extras)). ??