The Aftermath

[stts]

Just to play a bit of devil's advocate: When you know the tenant doesn't have the cash to pay the rent, and you know you can't rent that land to anyone else, then what do you have to lose by accepting an IOU? At least with the stock in his pocket, he makes out like a bandit if it ever does go to production.

To me, what's more promising is that Stuart Lichter is still pumping money into it by purchasing more stock. And so is Ken Way. And that other guy, who's name I can't remember...

Well RACER trust seems to think they can get somebody else to rent the property. Thats why they objected to Stu accepting alternative payment. But Stu put his foot down and said he decides what constitutes full payment. So as long as Stu holds up his purchase agreement, RACER is stuck with ELIO as the tenant, no matter if they like it or not. But Elio has sold off some of the equipment and is OK with renting out part of the facility to generate more income. So nothing here is crystal clear yet.

 

[RUCRAYZE]

Well you know, Im an automation engineer. Theres not a thing about any of this that Im not an expert on. I could build the Sonders. I could single handedly build that Elio factory into production. There just isnt enough of me. So you can continue to hate on me because you cant stand it that I have it all figured out, but it really doesnt change anything. If Elio gets the money he says he needs, Im going to get my car. As for Sonders, he really doesnt have squat yet so he is not even worth sueing, and theres nothing yet to consider. I will be more "objective" about it when facts pop up that changes all that. Batteries are the single impediment to Elio like affordability. They need 50% increase in capacity and the battery price needs to be cut in half to yield a car to compete with the Elio. In fact, I would hope Elio would eventually make an electric version of his car when the battery prices drop. The highway aerodynamics would be great at curing range anxiety.

"Well you know, Im an automation engineer. Theres not a thing about any of this that Im not an expert on."
As brilliant as you seem to present yourself, let me introduce you to the apostrophe, (and spell checker would seem a good investment) :-)

 

[Thomas Malkin]

Not exactly. Tesla had been making cars for 5 years when they got their loan.

From the DOE site (https://energy.gov/lpo/services/atvm-loan-program) - a simple qualifier that Elio doesn't seem to fit:
"In order to be financially eligible for an ATVM loan, an applicant must be financially viable without the receipt of additional federal funding for the proposed project."



What's the half price campaign?

I'd suggested (just me) a few times that if a significant portion of the reservers ponied up, say, half (or all) of the purchase price to the company, then Elio would have enough cash to start production. 66,000 * 3500 = 231 million bucks. Probably illegal, or impossible to sell to the reservists. I called it the Hail Mary Pass. I'd do it.

 

[Rickb]

"Well you know, Im an automation engineer. Theres not a thing about any of this that Im not an expert on."
As brilliant as you seem to present yourself, let me introduce you to the apostrophe, (and spell checker would seem a good investment) :-)

I have a slightly used name tag avatar for sale.

 

[Thomas Malkin]

You've interpreted that snippet from the DOE information incorrectly.
We've been over that for what seems like a couple hundred times on this site.
The posts are there if you wish to look them up.

Em. Glad I caught that. I'd be trolling if I didn't answer.

Yeah, we've been over that point a lot.
My take? Tesla and SpaceX was * nearly broke* at one point during the Telsa startup process - if I recall the story properly- as Elon confessed recently. Elon BSed his way past that point and made it to the exit alive. Without that loan, Tesla would not exist. Financially viable without the loan seems to be a rather flexible requirement. No startup auto company can make it without a government loan, if history is any guide. I don't know what the ATVM loan would cover, if not a company with a swell tech that can't raise the enormous capital to start. Granted established companies mainly were the takers of the loans - some still owe, last I've heard - but I think (the ATVM people may disagree - no, not may, do disagree) that the ATVM loan was designed for the purpose of getting new ideas on the road that everyday capital could not. If the goal is to aid only companies that could do it anyway without the loan, I question the entire idea. As said, I think the ATVM people do also, else they'd move.
Paul and his company are experts on the ATVM loan, and they hardly would misunderstand the requirements. Per the unusually candid (for them) press release last summer (2016), the ATVM loan requirements were changed from reserved customers to, I recall, committed buyers. Elio expressed in measured terms their frustration at the game change at the juncture of turning on production. They then said they'd pursue outside financing. A year later, layoffs and a stopgap measure to raise operating funds, and they still are frustratedly posting their desire to get that ATVM loan they think they are fully qualified for.

 

[Elio Amazed]

Stu is not a member of RACER trust. RACER has absolutely nothing to say about how EM pays their rent.
Caddo Parish owns the plant. Their IDB is in charge of it. Stu leases the plant from IDB and subleases part of the plant to EM.

Oh, and BTW, RACER could actually care less about the $23M for the equipment.
It's the bank that made the loan that actually needs payed back.
Racer already got their money from that loan.
The bank is owed the money.
Check the SEC filings.

 

[TMOSteel]

As for Sonders, he really doesnt have squat yet so he is not even worth sueing, and theres nothing yet to consider.

SONDERS doesn't have squat? He's got entire electric bicycle company making a number of different model electric bikes for half the price of the general market, and now branching out into Europe and Australia.

Now, if you really want to talk about who's got squat I know this guy Paul...

 

[stts]

Stu doesnt have to be a "member", they are still all in the same bed together. If any of them farts, they are all going to be whining. YOU look up Stus meeting minutes with RACER. YOU would find that RACER was incensed that Stu wont dump Elio and accommodate another renter. He has since wavered on his statement and may consider putting some tenents in the plant if he can find the right fit. There seems to be another property in Caddo parish that Elio might be willing to use. So RACER DOES have plenty to say but the the contracts were so clever that RACER cant do squat about it. And that "bank" you mentioned is Stu. He personally guaranteed the loan and then just went and bought the loan from GemCap thru his own company CH Capital. It says so in the SEC filing.
https://www.sec.gov/Archives/edgar/data/1531266/000121465915006359/partiiandiii.htm

RACER trust is a government entity tasked with repurposing auto properties so they benefit the local community. But the contracts they entered into reguarding this property strips away most of RACERs rights concerning the property as long as Stu keeps up with the terms of the contract. RACER, Caddo and IDB are ticked. Stu and Elio are not happy either. EVERYBODY was banking on the Elio car plan to be a home run. So now its the fine print in all these complicated contracts thats keeping the Elio idea alive. Stu has really been very clever to make sure things stay buttoned down. The TV report investigating Stu below detailed all the clever tricks Stu employed to get us where we are today. Everybody in bed still has their stake in all this, but its been Stu that setup the hardball rules so impatient idiots couldnt go off and ruin everything.
https://www.ktbs.com/news/after-job...cle_f62f6a01-5be8-5743-b210-f33d3320ea88.html

And Stu is not doing all this for grins and giggles. This article says Stu owns 28% of the Elio stock before this pending NASDAQ offering. So Elio and Stu are butt buddies and they are going to be dragging RACER and Caddo into the winners circle despite themselves. Thats what Stu's actions seem to say. And I always put actions as more indicative than just words. Stu aint interested in rent payments. He seems to think the stock is going to be worth a gold mine.
http://npaper-wehaa.com/forum-news/2017/05/24/#?article=2924915

 

[stts]

SONDERS doesn't have squat? He's got entire electric bicycle company making a number of different model electric bikes for half the price of the general market, and now branching out into Europe and Australia.

Now, if you really want to talk about who's got squat I know this guy Paul...

Bahahahaha. That made me laugh. Like saying a hoverboard maker is starting on the electric passenger plane. There is no way I would spend $800 plus $200 shipping on an electric bike. I dug an electric scooter out of the trash for free and can power it up after replacing its batteries. OR, I can get an 80cc gas motor kit to mount on my bike for $100 from Walmart. In fact, Walmart is selling Ebikes shipping free for less than $400 and electric wheel hub kits for your bike for even cheaper than that. Sondors doesnt stand a long term chance against the Chinese. His bikes will be hit by Trumps import tariffs the same way they will hit the Chinese ones. So he will eventually lose that battle. i saw a lawsuit too with his bikes. I think I mentioned before that Sondors sounds like a name lawyers would want to sue.

 

[stts]

"Well you know, Im an automation engineer. Theres not a thing about any of this that Im not an expert on."
As brilliant as you seem to present yourself, let me introduce you to the apostrophe, (and spell checker would seem a good investment) :-)

Yea, you will find that Im not attentive to spelling and grammer. I do fix a few of the many things that seem to be red lined, but when its still redlined after I "fix" the spelling, I tend to just leave it. Grammer seems to have a problem and I took out one of the "m"s. But alass, its still redlined. Spelling and grammer is a memory trait and I have found that my memory is getting worse and not better. So thats why I dont sweat spelling any more. Im a thinker not a memerizor, so life still works well for me.