Something’s Gotta Give.....

[booboo]

 

[RSchneider]

Maybe they should get the guy who started Pebble Watch to do kickstarter for Elio. Pebble has 3 of the top 5 kickstarter campaigns ever. They even raised like $20M in a day and all of this for the second generation of the watch, not the initial one that raised $10M. Only problem was that the company is out of business because they didn't read the market correctly (i.e. avoiding the sports watch market like Garmin) and racked up a bunch of debt. Once the reservation holders orders were fulfilled, they had to deal with reality and competition (which was way ahead of the game). Two years later they were bought up by FitBit. None of that matters because the CEO did a great job at crowdfunding and that's what Elio needs.

On the other hand, Elio had no monetary limit on their crowdfunding through reservations. Plus that crowdfunding is still going on without all of the limitations of Kickstarter.

 

[Rickb]

Elio already had it's Kickstart. If Elio is viable at this point in time, and I hope it is, the big money venture capital market will and SHOULD fund it. The little guy investor has done their fair share to support EM in terms of non-refundable reservations and stock purchase. The problem with the venture capital market is they want to drive it......not the company, but rather a validated Elio.

 

[RSchneider]

The problem with the venture capital market is they want to drive it......not the company, but rather a validated Elio.

One of the issues today is many can make products look production ready because of things like 3D printing and advanced prototyping. Just look at the Sondors. It looks like they could start cranking them out tomorrow but that's not the case. There's lots of work to be done to make it manufacturable and cheap enough for them to make a profit. If Elio had their car done today. The funding to ramp it up to 250K per year would be much easier for them to get. Since Elio needs $85M to finish it, I'm thinking when they get that NASDAQ listing in Spring 2018, that money will go to getting the car done. Then the rest of the VC funding comes rolling in.

 

[Elio Amazed]

One of the issues today is many can make products look production ready because of things like 3D printing and advanced prototyping. Just look at the Sondors. It looks like they could start cranking them out tomorrow but that's not the case. There's lots of work to be done to make it manufacturable and cheap enough for them to make a profit. If Elio had their car done today. The funding to ramp it up to 250K per year would be much easier for them to get. Since Elio needs $85M to finish it, I'm thinking when they get that NASDAQ listing in Spring 2018, that money will go to getting the car done. Then the rest of the VC funding comes rolling in.

So... $141M already spent plus $85M more to "finish it" = $226M.

Just to produce a production ready prototype...
While holding onto some old leased factory space and stored equipment...
Which is still going to need to be bankrolled, outfitted, tooled, programmed and staffed at that point?

No-one sees anything wrong with that picture? I'm thinking VCs might even if we don't.

 

[RSchneider]

So... $141M already spent plus $85M more to "finish it" = $226M.

It wasn't $141M on the car. It was actually:

"$62.3 million has been invested in vehicle engineering and development, of which $26.3 million was in the form of shares of common stock granted and the assumption of liabilities of Elio Engineering, Inc. dba ESG Engineering."

Elio engineering got paid in stock which means only $36M was in cash was paid to others for engineering it (i.e. Roush, IAV, etc...). As for the rest of the money ($78M), it went to other things (i.e. the traveling show, lease payments, payroll, rent, insurance and other office expenses).

 

[Elio Amazed]

It wasn't $141M on the car. It was actually:

"$62.3 million has been invested in vehicle engineering and development, of which $26.3 million was in the form of shares of common stock granted and the assumption of liabilities of Elio Engineering, Inc. dba ESG Engineering."

Elio engineering got paid in stock which means only $36M was in cash was paid to others for engineering it (i.e. Roush, IAV, etc...). As for the rest of the money ($78M), it went to other things (i.e. the traveling show, lease payments, payroll, rent, insurance and other office expenses).

Yeah, I was aware that the figures were somewhere in that ballpark.
But I was talking about the end result. $141M and what I mentioned is what was ultimately produced.

 

[Made in USA]

Perhaps what is needed has already started to happen. In one of the ALPHA articles on GM, they say that consumers are not buying the more expensive vehicles and are instead looking for lower cost alternatives.

https://seekingalpha.com/article/41...10bfa74b580d6d10b4d4d6037f3849f&uprof=45&dr=1

 

[Watashiwah]

One of the biggest issues for me is the 26 million to Elio Engineering. I understand that that ‘service’ is separate from Paul’s $ 250,000 per year salary, but what did Roush have to redesign and what is ‘the price of doing business,’ as the corporate principal?

If I were a big investor, things like this would weigh heavy in my decision to invest. If EM goes public, again and new stock is issued, there will certainly be a period that stock can’t be sold by the previous principal stock recipients but as an investor I’d be worried that at midnight they’d cash out.

 

[RSchneider]

I'd guess that Roush did suspension work for Elio. That's one of their specialties. Also, they have a huge dyno facility that is used for long term and emissions testing. I'd suspect those two things.