Another Year Gone By...has Anything Changed?

[Doug McDow]

It might be time for Paul to ask Apple to back the Elio. Apple, I've heard, was look at getting into some sort of Chinese electric car or something and with the administration leaning on them to get there asses back to America, Elio looks like a viable way to go. They could drop some product into the dash and telimetry and kick in 4 mil or so to get this rolling.
If not there are other deep pockets out there if Paul wanted to relinquish some control and partner up.
Just a thought.
MK

That would be a Win Win for me. I own Apple and Elio!

 

[Rickb]

Apple, Inc. has interest in high tech future transportation and believe they have an engineering team developing their Titan EV concept. Was that prototype driverless? Cool for an old geezer that may have an expired/non-renewable drivers license by the time Elio reaches production.

 

[Elio Amazed]

But -- stop and think -- the market value of the 65000 reserved cars is $420 million, not counting options. So if it costs $376 million to get rolling, they can STILL pay that back out of first year production (not that they would -- spread it out over 3 years so there's some working capital to use to build the biz.)

That's entirely misleading.
IF as you've said, they need $376 "to get rolling" (note that neither you nor they have said the $376M is to actually finish 65,000 vehicles")...
No, they could only pay back $65M of that at the completion of 65k vehicles. And even if it is the case that the $376M would finish 65k vehicles...
That's around 475M ($7300 x 65k) minus the amount of the all-ins that they've already spent and the bonuses they've already given.
So I'm not even sure the total yield would be $400M. I don't think even $376M is taking into account ongoing operating costs...
Once that assembly line starts producing Elios.

There's a difference between grief and outrage. I certainly understand the first feeling if the Elio doesn't make it. But there is zero evidence of ineptitude, greed, stupidity, corruption, fraud, or any malign intent. Elio is run by people who are sweating blood to make it work for all of us. Outrage just isn't appropriate.

Let me just give you what is handed down to the people engaged in my current business...
"This is a results-based income. There is no compensation for effort. Money is only earned when transactions are closed."
I am one that does not believe that there is zero evidence of ineptitude. And I believe that there is a reasonable level of responsibility involved when individuals use others' money in those individual's effort to achieve their goal. That said, I feel no outrage. Nor grief. Only a desire to see things...
and hope that others see things... as they really are.

 

[slinches]

It seems unlikely that EM would end up producing just 65k Elios. If they get into full production, I doubt they'd stop there and there should be plenty of demand once they start hitting the roads. I think it's most likely that the first model run will either be less than a few hundred or greater than 120k units.

 

[Elio Amazed]

It seems unlikely that EM would end up producing just 65k Elios. If they get into full production, I doubt they'd stop there and there should be plenty of demand once they start hitting the roads. I think it's most likely that the first model run will either be less than a few hundred or greater than 120k units.

If it's scenario #1 and they only net around $1k on each unit from the very get-go in the first 376k units produced...
(plus however many more units it takes to cover operating costs during the mfg of those 376k+ units required for pay-back)...
Betting on seeing a substantial return on their producing way more than 376k+ units sounds like it would have some of the worst odds in history.

It would be nice if they'd step up to the plate and clarify all those vague numbers they throw around.

 

[voyager]

Elio reportedly needs another $376 million to start production.
Read more: http://gmauthority.com/blog/2017/05...-operations-at-former-gm-plant/#ixzz4gMxeS0x2

 

[Elio Amazed]

Elio reportedly needs another $376 million to start production.
Read more: http://gmauthority.com/blog/2017/05...-operations-at-former-gm-plant/#ixzz4gMxeS0x2

There are three threads on this.
We've been talking about it all week.
That article's a regurgitation of Jalopnik.

 

[RUCRAYZE]

This is silly. Payments begin on a schedule TBD and at a rate the lenders think they can make enough money from without strangling the debtor. Some of the money will be cash, while equity will provide some as well. Since there are many players in this game, it gets extremely complicated.

Elio will take its funding as available and as needed -- no point in running interest charges until you HAVE to. So the development money gets used first, plant set up second, starting wages for factory hands third, etc. Definitely not "here's a check for the whole half billion, have a good time"

But take the money and run is practically and legally impossible. Liens, mortgages, claims on stock and stock-in-trade will all be used to secure loans.

Three to four years to pay it all down is what I'd foresee ... and that's if demand holds up. Which it will; the car's just too good a deal for folks to pass it up ... provided it's well enough built and well enough equipped.

Look for an Electric Elio in Gen2, and look for crash warning / avoidance even in Gen1. (Which will raise cost, but you can't get a 5-star safety rating (or autocycle equivalent) without it).

Although E was shooting for a 5 star safety rating, that has long gone away, and no longer used in their advertising.
After I read some and then watching Youtube crash tests it's clear that this lightweight machine is going to have a higher degree of risk.
Aside, after 50+ years of biking, I have no expectations.
IMO, not offereng the color which is not to be mentioned- rhymes with mellow, is more visible then any of the color options being offered.
Progressive fire departments, have moved away from the traditional red.

 

[Samalross]

They could make a special addition of this colour for reservation holders. Would add to the collectibility

 

[Watashiwah]

They could make a special addition of this colour for reservation holders. Would add to the collectibility

That can be something that EM can discuss and promise on this Friday'a blog update, many of us would love to hear about another virtual color option!!