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Adjusted For Inflation

Discussion in 'General Elio Discussion' started by ABC123, Feb 16, 2020.

  1. ABC123

    ABC123 Elio Aficionado

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    Since all our discussions are in the hypothetical, I pose to the group the following: $7500 in 2009 indexed for inflation would be close to $9k today. Several of us already lost their deposits, but secretly still want an Elio. Stay with me here - if Elio got funding (ok, stop laughing now) but had to raise their starting price to $9k, would you still be in?
     
    @harigtweets and 3wheelin like this.
  2. Elf

    Elf Elio Addict

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    The Government has stated repeatedly there is no inflation.
     
  3. BaldGuy

    BaldGuy Elio Addict

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    Same logic might suggest everyone who went all in should send Elio an extra 100 or so.
     
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  4. 3wheelin

    3wheelin Elio Addict

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    Arcimoto and Electra Meccanica can barely produce let alone sell their FUV and SOLO for their suggested price so your 9k calculation no matter how correct is good for a laugh. Let me just say I'll still buy it for 18k in a heartbeat.
     
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  5. RSchneider

    RSchneider Elio Addict

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    Elio can set the price to whatever they want outside of the 65K reservations. That's why it's targeted. This is because there are about 21K that are locked in at $7K and the rest are $7.3K. If Elio attempted to change that number to be higher, there would be a class action lawsuit against Elio Motors for a breach of contract. Out of 65K you will find a vocal group that will give sob stories of how they can't afford to pay more etc. By keeping the reservations at the fixed prices, it will just make it a better deal for them down the road. Imagine if you are in at $7K, put down $1K seven years ago and have a $500 discount, you only pay $5500 in 2021 all while the late comers will pay $9K. It's like you got a 39% discount.

    The other issue is how much Elio needs for production. That goes up too. It'll be around $558M today but if you subtract the $125M savings by using an existing powertrain, then it's $433M.
     
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  6. ABC123

    ABC123 Elio Aficionado

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    So it sounds like you would hold Elio to the contract - many of us want to do the same.

    Adjusting the start-up costs to the same inflation level puts this even farther out of reach.
     
  7. RSchneider

    RSchneider Elio Addict

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    Look at it this way. There were a number of people that put money down on the Elio. Then Elio doubled down by having people commit to buy for $7K. If you had that and then came on here or any other forum at the time to complain you never got your Elio and want your money back, there would be about 10 people that would say, "Read your contract!" Thus telling you, it's ironclad and you can't change it at all, no money back for you no matter what. Thus you walk away upset. If tomorrow, Elio says, "How about change that contract to $9K and you'll get your Elio?" Take a guess what most will do? They will scream, "Read my contract!." Honestly, they are right.

    Plus, who here would actually trust that raising the price to something like $9K would guarantee they would be built? I know a few here would, but it's safe to say that Elio Motors is losing trust every day and agreeing to something for yet another extension is not in the cards for many. I'd be shocked if 10% would agree. This could have worked many years ago but Elio has stood behind that contract and now they are stuck with it.

    Top it off, the operating expense of things like operating the plant and stores goes up too. Since Elio insists on company owned and run stores, they need to add that in. Elio can't be successful and attractive to investors if they have no stores. Just look at FUV and SOLO. Solo has like one or two in the US and FUV has zero. Thus why they trickle out the product even though they have all of these reservations. They know once they burn through them, they are stuck with very little new sales. Elio can't survive on word of mouth alone.
     
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  8. Rickb

    Rickb Elio Addict

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    RS, Zero Stores? Arcimoto’s sales model is direct to consumer sales with no planned USA Dealers. However, there is currently one official distributor Arcimoto New Zealand. Arcimoto does have 3 or 4 current private fleet rental locations in the USA (CA, FL, WA, OR) with plans to expand the Rentail store locations. The key word for Arcimoto is they are currently delivering (“trickling out”) 8 retail reservation vehicles per week while scaling production. We have some idea what new FUV sales will be after the current 5000 reservations are delivered based on the positive customer feedback and media reviews of the vehicle. Arcimoto is on a similar path as Tesla Motors was in delivering their first 100 Roadsters. Who thought Tesla was going to become a successful startup auto manufacturer? Time will tell on Arcimoto, EMV, and Elio Motors.
     
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  9. 3wheelin

    3wheelin Elio Addict

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    Past tense. ELIO was doomed the day he conceptualized a 7K 2 seat 3wheeler for the masses. Eventually it dawned on him that reservations and hype with a few show cars sorrounded by a few big names in car manufacturing are nowhere near enough without the investor's seal of approval. ARCIMOTO did everything right by starting small and slowly handing happy owners keys to their FUVs and increasing their deliveries as needed. EMV did the same and also have few of their handbuilts out there in the real world and now ready to mass produced their upgraded SOLO 3. Yes, their process maybe slow and yes it's niche at the moment but it's easy to appreciate what they've accomplished because they never lost track of what's real (pricing) and what will work.
     
    Last edited: Feb 18, 2020
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  10. Watashiwah

    Watashiwah Elio Addict

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    “Past tense. ELIO was doomed the day he conceptualized a 7K 2 seat 3wheeler for the masses. Eventually it dawned on him that reservations and hype with a few show cars sorrounded by a few big names in car manufacturing are nowhere near enough without the investor's seal of approval.”

    ———————————-

    It was ‘doomed’ from the git-go. I remember very early on Paul marketing 25 dollar tee shirts that had a St Patty’s day theme (only appropriate for one day!) that only secondarily mentioned ELio. That was a harbinger, there were dozens of subsequent ‘missteps.’

    What if it was never ‘meant to be?’ There are so many questionable decisions and money arguably squandered pursuing almost crazy goals. Where was the BOD and, in particular, Hari during the saga? Hari has a stellar CV. Paul, not so much, just hungry.
     
    Last edited: Feb 18, 2020
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