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Jalopnik Claims Elio Has Only $100k In Bank, $123 Million In Debt

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slinches

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The issue with that, as I see it, is that isn't a specific requirement that EM needs to meet. That may be the opinion of some at the ATVM loan office and they may be holding up the process because of that, but there is nothing in the technical loan requirements to that effect. Hence the recent push to get some attention from the top of the food chain.
 

Elio Amazed

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The issue with that, as I see it, is that isn't a specific requirement that EM needs to meet. That may be the opinion of some at the ATVM loan office and they may be holding up the process because of that, but there is nothing in the technical loan requirements to that effect. Hence the recent push to get some attention from the top of the food chain.
Really? So how do you meet the viability requirement when there's a chance that you won't even be able to get to production WITH the guarantee?

Yeah, I'd say that it has to do with the requirement and not an opinion or whim. If it doesn't, something's wrong because it sure should.
 
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ehwatt

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The ATVM money goes to vendors, it does not go to EM.
Long time since I posted; but at the risk of "hurting feelings" and getting a nasty warning, I respectfully declare: nobody Knows what the hell is Really going on, and, for the most part, are just engaging in a rousing round of mental masturbation while trying to convince the unpersuadable. I hope I haven't offended any tender sensibilities, but this stuff wears thin after a while.
I'm a little confused by that. So, the ATVM money is NOT part of the $300M needed to start production?
 

Coss

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Long time since I posted; but at the risk of "hurting feelings" and getting a nasty warning, I respectfully declare: nobody Knows what the hell is Really going on, and, for the most part, are just engaging in a rousing round of mental masturbation while trying to convince the unpersuadable. I hope I haven't offended any tender sensibilities, but this stuff wears thin after a while.
You said lot without really saying anything.
So what's your point?
 

WilliamH

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The ATVM loan sounds a lot like the construction loan I got for my house.
Yes, I got a big loan, but not all at once. (well, big for me anyway :))
Had to have a .3 mile road built into the site.
Had to have a 270 ft well drilled.
Had to have a power line built.
Those before the builder would even start.
Then got the rest in three draws based on percent completion.
Then had to convert to a mortgage.
So startup loans are not a big sack of money all at once like some people seem to think.
 

RSchneider

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It could be this. Elio has others out there that will invest only if they get the ATVM loan. Get the loan, rest comes in and they go ahead according to plan. It's kind of like when I was growing up and I really wanted a BMX bike. My parents told me that they would put up half as long as I went out and raised the rest. So, I worked all summer mowing lawns and painting houses. I did my part, my parents did theirs. I know this is not just purchasing a bike but in reality it's the same. Elio busts their hump to get that loan, investors come in immediately after.
 

slinches

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Really? So how do you meet the viability requirement when there's a chance that you won't even be able to get to production WITH the guarantee?
The standard they have to meet is "a reasonable prospect" to repay the loan and a positive net present value.

With a demonstrated market of at least 65k in the first year, the NPV is definitely positive. The question then is whether EM's funding plan represents a reasonable prospect to get to production, if the loan is granted. We can't say for sure without knowing what that plan is, but I see multiple avenues to cover the difference (if there's a difference to cover at all) that combined have much better than fair odds to succeed.
 
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