What Would It Take For Em To Self-fund?

[Jeff Bowlsby]

EM says they need $180 million to start production. I assume that means to tool-up, train workers, buy materials inventory, build engines...all the activities that need doing before even one Elio can be built.

What if they received _X_ number of orders, paid in full in advance...how many pre-orders would they need to do an initial run? 1000, 5000, 10000? If they could develop a plan that required capital of a certain minimum level, and they could achieve it, they could begin production. Then on that first run, they would be making profit on every vehicle produced that would go on to generate the capital needed for additional future Elios. Of the 12K folks who are all in at $1000, I suspect that a good number of them and others would be ALL-IN with a 100% prepaid prepurchase, as long as it was a guaranteed plan with little to no risk.

That how most businesses do it...make sell product or services, reinvesting the profits into the company which develops equity over time.

Is this even possible?

 

[NSTG8R]

If it was "garaunteed" that there'd be an orange Elio sitting in my driveway within a year, I'd gladly send them a check today for the full amount.

 

[Norahsbed]

The math isn't that hard. $180,000,000 divided by $5,800.00 (the amount left on your purchase, without options) would be 31,035 reservation holders with $1000 already down. Considering that most people will have to finance their vehicle at purchase, its Not possible with today's numbers.

 

[mag44]

A guarantee from Elio. I chocked on my McDonald's Sausage and Biscuit.

 

[CHUCK G.]

EM says they need $180 million to start production. I assume that means to tool-up, train workers, buy materials inventory, build engines...all the activities that need doing before even one Elio can be built.

What if they received _X_ number of orders, paid in full in advance...how many pre-orders would they need to do an initial run? 1000, 5000, 10000? If they could develop a plan that required capital of a certain minimum level, and they could achieve it, they could begin production. Then on that first run, they would be making profit on every vehicle produced that would go on to generate the capital needed for additional future Elios. Of the 12K folks who are all in at $1000, I suspect that a good number of them and others would be ALL-IN with a 100% prepaid prepurchase, as long as it was a guaranteed plan with little to no risk.

That how most businesses do it...make sell product or services, reinvesting the profits into the company which develops equity over time.

Is this even possible?

I would be all in & all up front.

 

[Smitty901]

Lot of us that could pay up front. I have the cash to pay off #8019 sitting in an account right now. Had ELIO tried something earlier a lot of ways to raise cash might have work. Heck some of this cloud funding could have caught on for them. Now there may be to many missed goals to get people fired up.

 

[BlioKart]

My guess is majority of Elio buyers wouldn't be able to pay up front. The rest would not be able to finance the full amount.as their is no collateral like in a normal auto/moto loan. It would also be a huge cluster fvck to organize it and get people to do it.

 

[Rickb]

A miracle! (Answer to What Would it Take for EM to Self-fund?)

 

[RUCRAYZE]

If it was "garaunteed" that there'd be an orange Elio sitting in my driveway within a year, I'd gladly send them a check today for the full amount.

How, in your wildest imagine, would you expect it to be guaranteed ?
Guaranteed that we either get our$ back or the E count me in. For those that can afford it, will be a no lose situation, unlike our all-ins! AND by the time it would happen we know the $6800 isn't gonna stay.

 

[JEBar]

Is this even possible?

given EM's pricing which is based on $1000 profit per vehicle, you'd have to have 180,000 fully paid reservations to generate 180 million .... that's a good bit out of the realm of possibility