After Job Losses Local Lawmaker Wants Elio Investigation

[Ty]

The Reg A+ funding was offered to generate the funding needed and earmarked to complete the E builds and testing........not to sock away $7.5 Million for pending fines because EM couldn't meet the contract agreement. Had EM focused on E build validation and their 15 month production schedule, there would likely be no fines pending July 1, 2017.

That's $7.5 Million taken out of the production funding pool, and WHO is getting that $7.5 Million in fines?

Heck, $7.5 Million, let alone $141 Million, should have built a driveable production ready Elio prototype and or E Build validation needed to attract the ATVM loan and the rest of the venture capital needed for production. IMO

It's tough looking in from the outside, isn't it? IMO, Paul listened to Roush and others when it came to building a reproducible vehicle that would retain it's handling. It makes sense that Paul stopped the unnecessary builds of what would have been a very inferior product and put that money into further engineering efforts. They didn't spend $7.5M on the impending fine, they merely accounted for the impending fine in their bookkeeping.

 

[Ty]

They've accounted for it as part of their outstanding debt.
That means they've simply recognized and declared it as part of their debt.
They have not "set it aside". Not have they paid it.
They simply do not have it.

Correct. I did not say nor mean to imply that they paid the $7.5M already. I still believe I saw that fine was pushed to January 2018. But, I can't find it anywhere. It's possible I'm wrong about moving the fine, of course.

 

[Elio Amazed]

The Reg A+ funding was offered to generate the funding needed and earmarked to complete the E builds and testing........not to sock away $7.5 Million for pending fines because EM couldn't meet the contract agreement. Had EM focused on E build validation and their 15 month production schedule, there would likely be no fines pending July 1, 2017.

That's $7.5 Million taken out of the production funding pool, and WHO is getting that $7.5 Million in fines?

Heck, $7.5 Million, let alone $141 Million, should have built a driveable production ready Elio prototype and or E Build validation needed to attract the ATVM loan and the rest of the venture capital needed for production. IMO

It seems like almost everyone is misinterpreting this.
They have not "socked" any money away anywhere for anything.
They only recognized and declared the amount as part of their debt ahead of time.
EM declared the mere 110k-some of funds that they have to their name.
If they had 7.5M in a trust or "socked away" anywhere...
They would have been obligated to include it in that figure...
AND provide the detail of where it was being kept.

If they'd already paid it, they would have said that.

 

[booboo]

" And one peculiar point I see,
As one of many ones of me
As truth is gathered, I rearrange,
Inside out, outside in, inside out, outside in,
Perpetual change"
" And there you are, " -YES
My goodness, just a few hundred million and all this iffy goes away. Who was it that said Stuart could do it ? Come on Stelio!

 

[Elio Amazed]

Correct. I did not say nor mean to imply that they paid the $7.5M already. I still believe I saw that fine was pushed to January 2018. But, I can't find it anywhere. It's possible I'm wrong about moving the fine, of course.

Sorry. Very confusing. Just posting for the sake of others.
Even I was confused by it. And I think I remember a couple of others taking it that way.
So I thought clarification might come in handy.

I have seen that Paul has said several times that they are still working on re-negotiating that part of the RACER agreement...
In order to extend that due date forward again. I hope you do find something

 

[Rickb]

Everyone is misinterpreting this.
They have not "socked" any money away anywhere for anything.
They only recognized and declared the amount as part of their debt ahead of time.
EM declared the mere 110k-some of funds that they have to their name.
If they had 7.5M in a trust or "socked away" anywhere...
They would have been obligated to include it in that figure...
AND provide the details of where it was being kept.

If they'd already paid it, they would have said that.

So when the July 1 fine comes due and the $7.5 Million happens to be available to pay that fine, who is it paid to?

 

[Elio Amazed]

So when the July 1 fine comes due and the $7.5 Million happens to be available to pay that fine, who is it paid to?

RACER. Let me also add here that 22 million (most of the purchase price and note) is still owed to RACER...
Or rather, more accurately, to CH Capital Lending, the institution that provided, and still holds, the equipment note.
That includes all the equipment still "owned" by EM and still in the plant, AND the equipment EM sold off.
The $7.5M due date has already been re-negotiated with RACER and extended a couple of times...
As has the date that the note was / is supposed to default to an 18% per annum interest rate.

Just for clarification, the $7.5M in fines is not part of the $22 million still owed on the note.

 

[TheAsterisk!]

This seems like a good place to insert a comment from Elon Musk.

[Musk has a well-documented tendency to promise Mars and deliver the moon. His electric car company was, by his own admission, a gamble. Musk said starting a car manufacturer from scratch was likely “the worst way to earn money, honestly”, though he caveated that “maybe rockets are a bit worse”. He said: “On a risk-adjusted return basis, an auto company has to be the dumbest thing you could possibly start.”]

There you have it from a man who is taking some of the same risks PE. Go Elio!!

If it's the same article from The Guardian that I read which becomes a series of line workers acting surprised and betrayed that physical work begets chronic physical wear, it also has Musk affirming that Tesla is a vastly overvalued firm at its present share price. Good times...

 

[RUCRAYZE]

This seems like a good place to insert a comment from Elon Musk.

[Musk has a well-documented tendency to promise Mars and deliver the moon. His electric car company was, by his own admission, a gamble. Musk said starting a car manufacturer from scratch was likely “the worst way to earn money, honestly”, though he caveated that “maybe rockets are a bit worse”. He said: “On a risk-adjusted return basis, an auto company has to be the dumbest thing you could possibly start.”]

There you have it from a man who is taking some of the same risks PE. Go Elio!!

When companies will need batteries in the future....
Inside Tesla's ginormous Gigafactory

by Peter Valdes-Dapena @peterdrivesJuly 27, 2016: 11:54 AM ET

Inside Tesla's enormous battery factory

Out in the desert, just off Electric Avenue east of Sparks, Nevada, over 1,000 workers are building what will be the largest building in the world in terms of its footprint over the ground.

This is the Gigafactory, where Tesla plans to build enough lithium ion batteries to catapult Tesla's electric vehicles into the mainstream.

It will be about 5.8 million square feet when completed around 2020.

Tesla believes that the adoption of electric vehicles has been hampered by the high cost of lithium batteries, so it plans to use this factory to drastically boost production.

The factory currently has almost 2 million square feet of space on several floors -- and the structure is only 14% complete.


"I think the Gigafactory has to be the most exciting factory in the world," Musk said of the project.

By 2020, Tesla (TSLA) hopes to be producing more batteries at this one factory than were produced in the entire world in 2014. With that flood of batteries, Tesla says it can drive down their cost by over 30%.

For now, Tesla is only assembling battery packs for its home and industrial energy storage products at this factory.

The batteries themselves are not being made here yet. Workers are assembling batteries made in Japan into battery packs that then go into Tesla's Powerwall and Powerpack products.

By the end of this year Tesla plans to have its battery partner, Panasonic, making the actual battery cells here. Panasonic and Tesla will each operate parts of the facility which will exist as a single huge building. Panasonic will make battery cells, and Tesla will assemble those cells into battery packs.

 

[Doug McDow]

When companies will need batteries in the future....
Inside Tesla's ginormous Gigafactory

by Peter Valdes-Dapena @peterdrivesJuly 27, 2016: 11:54 AM ET

Inside Tesla's enormous battery factory

Out in the desert, just off Electric Avenue east of Sparks, Nevada, over 1,000 workers are building what will be the largest building in the world in terms of its footprint over the ground.

This is the Gigafactory, where Tesla plans to build enough lithium ion batteries to catapult Tesla's electric vehicles into the mainstream.

It will be about 5.8 million square feet when completed around 2020.

Tesla believes that the adoption of electric vehicles has been hampered by the high cost of lithium batteries, so it plans to use this factory to drastically boost production.

The factory currently has almost 2 million square feet of space on several floors -- and the structure is only 14% complete.


"I think the Gigafactory has to be the most exciting factory in the world," Musk said of the project.

By 2020, Tesla (TSLA) hopes to be producing more batteries at this one factory than were produced in the entire world in 2014. With that flood of batteries, Tesla says it can drive down their cost by over 30%.

For now, Tesla is only assembling battery packs for its home and industrial energy storage products at this factory.

The batteries themselves are not being made here yet. Workers are assembling batteries made in Japan into battery packs that then go into Tesla's Powerwall and Powerpack products.

By the end of this year Tesla plans to have its battery partner, Panasonic, making the actual battery cells here. Panasonic and Tesla will each operate parts of the facility which will exist as a single huge building. Panasonic will make battery cells, and Tesla will assemble those cells into battery packs.

Wow!