Ty
Elio Addict
Right. I mean, look how long Tesla's been able to lose money.The key is cash flow. You can still lose money but as long as you are bringing in a good amount of money, you can survive. I think that's the major problem with Elio right now.
Without anything coming in, you do get to the point where even the IRS starts to take a look at what you are doing. This happens with many startups that the owner is taking their passion and turning it into a business. They can get away with it for about 3-4 years but then there some a point where the IRS will look at it as a hobby as opposed to a business. Thus, writeoffs, depreciation and other things will not be accepted. I know Elio is a bit more complex than that but there is a time where you need to see some sort of income where is reasonably close to what your expenses are. So far, the Elio expenses are way in excess as compared to what is coming in for real sales.
If Elio could start delivering cars and still lose X amount of dollars per car, at least money is coming in. You don't want it to cost you $20K for every $7K car you sell but even if it's $10K for every $7K car you sell, you can get away with it for a while as long as you are getting that delta smaller over time. Just look at Tesla, if it wasn't for the cash flow, I could never see that they would have made it further than 2015. Since they got the ball rolling, that delta gets smaller and smaller. Elio just needs to get the ball rolling.