Paul's Latest Press Release, Raising Funding

[stts]

"...as Paul himself said, they can't make enough profit to interest any."
I guess it finally dawned on Paul that he shouldn't have said "half a car, half the price" too soon even before all expenses has been tallied. Advertising at a projected price of $6800. from the beginning was so ambitious but it was the quickest way to garner interest and the resulting reservations....except the investors doesn't share his enthusiasm. I goggled and shared the cost of creating a new car from the ground up a while back and it's an easy half a billion. As this project drag along, does anybody still doubt it'll be what EM needs to get the motors runnin'?

Elio was really counting on that ATVM loan so he needed to prove the interest. Thats why his price was set so low. Unfortunately nobody could know the true intent of those running that program. So Elio basically torched one bridge so he could cross on another that he discovered had him locked out. But all is not lost. There is merit in the interest and $500Million in reservations Elio established. Somebody just needs to finally step up and kick this venture into gear.

 

[Thomas Malkin]

Investors do have this picky thing about wanting to invest in something that might make $.


100 million and we're in the same spot as we are now, except Elio & staff are being paid.


Elio Motors has never met the financial criteria of the ATVM loan program. It isn't even clear that adding a $100 million fixes that. It isn't even clear that the Elio would qualify as an ATV - "Advanced Technology Vehicle." Add to that, the current administration has proposed eliminating the ATVM loan program altogether.

So, a 100 million $ IPO. Life continues. Back to getting reservations. They state they would like to raise $110 million doing that. Optimistically presuming $1,000 per reservation, that is 110,000 new reservations.

How many years did it take to get 65,000 reservations? And that was when Elio was enjoying generally favorable publicity.

Paul and Elio vehemently disagree. They say they've qualified since 2015. They have not received an explanation as to why they never get a loan, save for the 2016 rules change which is a tad late in the game.

 

[Thomas Malkin]

No response to this thread? I see this as a strong positive am I wrong? Does this mean Paul Elio get a negative response or decided to go for broke selling stock? My first thought after getting my email was "most encouraging thing about Elio in at least a year."

Only one site in the last 24 hours, futurecars (http:// www.futurecar .com /article-1292-1.html) bothers to mention the ATVM loan failure. As the others don't, it's damned hard for people to understand what's happening to the company.
EDIT: And this site, so two.

The loan delay was deadly. 185 mil would have done it, and now they need hundreds of millions.

 

[Thomas Malkin]

I have to think if they can raise $16M from the first stock offering when no one knew who they were, then they should be able to raise $100 million or more if the stock hits the NASDAQ and everyone knows them. Paul and crew ringing the opening bell on NASDAQ and then a quick CNBC interview wouldn't hurt either. If I see that I'll know I better start thinking long and hard about what color I want.

I would hope for the following miracle: 100 million to stay alive, and somehow the stock goes up and they get the cash they need. Another miracle would be for Paul and company to keep control.

 

[Thomas Malkin]

"...as Paul himself said, they can't make enough profit to interest any."
I guess it finally dawned on Paul that he shouldn't have said "half a car, half the price" too soon even before all expenses has been tallied. Advertising at a projected price of $6800. from the beginning was so ambitious but it was the quickest way to garner interest and the resulting reservations....except the investors doesn't share his enthusiasm. I goggled and shared the cost of creating a new car from the ground up a while back and it's an easy half a billion. As this project drag along, does anybody still doubt it'll be what EM needs to get the motors runnin'?

He said, and I recall his saying this clearly, as he said it so many times on video, that angels want BIG profits and FAST, within a couple of years. They want to flip a house. They're not generally in the industrial investment game, and certainly not into low-profit (as a total) investments. The autocar in production probably costs...4K?.... to build, so there's healthy profit per car after all is running. But not the billions the VC angels want to see.

 

[stts]

Paul and Elio vehemently disagree. They say they've qualified since 2015. They have not received an explanation as to why they never get a loan, save for the 2016 rules change which is a tad late in the game.

It has always been as political as why Keystone was hamstrung for the last 8 years. Electric car makers got all the fun.

 

[Thomas Malkin]

Elio was really counting on that ATVM loan so he needed to prove the interest. Thats why his price was set so low. Unfortunately nobody could know the true intent of those running that program. So Elio basically torched one bridge so he could cross on another that he discovered had him locked out. But all is not lost. There is merit in the interest and $500Million in reservations Elio established. Somebody just needs to finally step up and kick this venture into gear.

You're right. Rolling a company out would cost more than 185 million, so he was counting on the ATVM loan to kickstart the manufacturing. I may have erred in thinking he only need that sum. But a going concern would have jacked the orders far past 66K reservations and the company would have taken it from there.

 

[Samalross]

I would like to know how much of the money raised will to Elio production. We know that at least 25 million is spoken for with the building debt. How much more is rearranging debt ?

 

[Elio Amazed]

The autocar in production probably costs...4K?.... to build, so there's healthy profit per car after all is running.

Not according to Paul Elio. Paul has said over and over that there is a $1k profit per vehicle.
Of course the implication was that was before upgrades and options.

 

[Rickb]

According to Elio Motor's they know the ATVM Loan Requirements, but have not met all the requirements. EM's Annual Report filed 05/01/17 states that they are officially on Stage 1 of the 4 Stage ATVM loan approval process:

The reality is EM needs to build/test/validate a driveable E prototype, show financials indicating they can repay the loan, and prove market acceptance beyond 65,000 reservations to guarantee long term sales revenue, once again, required for the applicant to successfully repay the loan with interest.