Atvm News - 2018 Fed Budget Proposal

[acentre]

So when have they have posted a profit? They bleed over $500B a year. Have you done any research on Tesla?

Tesla is investing for the long term and I await the model 3.

 

[booboo]

Sent this to my Democratic Congresswoman.
I and 65,000 others hold an Elio Motors, 84 MPG and $7,450 MSRP, reservation. Elio fits the ATVM loan program very well.
The Trump budget cuts the ATVM program. Thank You,

 

[acentre]

So when have they have posted a profit? They bleed over $500B a year. Have you done any research on Tesla?

My research reveals a less than $500 billion expenditure per year. That would be a problem!

 

[Elio Amazed]

Remember, if the company goes bankrupt, it doesn't mean that someone has to buy the whole business. Someone could just buy the intellectual property (data, CAD files) and physical property only pertaining to the cars (cars already built, tooling and parts). Then the plant machinery would be sold off (I think Elio owns everything in the plant). Sales of these items to pay off the debt. As for the reservation holders, I can't imagine anyone would want to touch that at all as there's no benefit to doing so. The all ins never get a car and the refundable get their money back since it has to be in escrow.

There's too much of a risk right now with the all ins. For example, the car might need to be sold for $8K and the contract is not for that amount. You raise the base price, then expect a class action lawsuit with those reservation holders. Maybe the 5% of the reservation holders don't mind a price increase but the other 95% will.

IMO, all bets are off as far as the reservations if someone were to buy EM out of bankruptcy for pennies on the dollar.
The money they would pay for EM and it's few physical assets would go to the people EM are in debt to.
I really don't think the new owners would be under any obligation to honor the reservation deposits or the lock-in.
It would just be considered part of the "debt" of the then defunct company along with all the other debt.
It would either be taken care of by what was paid in the purchase price or simply go away.

It's a curious situation. Even though they wouldn't have to honor those "agreements"...
I think the new owners would have to honor the reservations and lock-in to have a good chance of selling anything remotely resembling an Elio.
On the other hand, knowing that you'll be taking on an additional $22+ million cost over and above the winning bid on the bankrupt EM...
It's not a lot in the grand scheme of things and considering how low the winning bid would be, but all the same, it would give additional pause.

Catch 22. So, IMO, it is possible that someone would buy Elio and, for the sake of instilling trust, honor the reservations and lock-in.

But not a gimme. New owners or not, the general public is still going to smell the history of stink on the Elio if the reservations and price aren't honored.

Will they still buy the Elio (or whatever it might be called then) if it still offers quality at the right price? regardless? Who knows.
Would the new owners take that gamble to save a "few" million? Who knows. Paul's crystal ball is cracked and there's none on Ebay right now.

 

[Elio Amazed]

They screwed that pooch when they locked in the price for $7,300 and binding commitments at $7,000. Whether the contract holders mind is a different story, but breaking thousands of contracts guarantees lawsuits. If the base price has to be raised to make it work, they are just going to have to take a bath on those first sets of all-ins.

Yes, lawsuits against the existing EM.
Not valid against the new... Whatever the new owners would call it.
Yeah you can generally sue anyone for anything and for just about any amount...
But my analogy is, what good will it do to sue a homeless man with 38 cents in his pocket...
Even though you're absolutely in the right?

Those reservation holders and lock-ins are in the same boat as the private investors.
If EM sells in bankruptcy, they only get a share of the purchase price, and that depending on where a judge places them in the line.

 

[Samalross]

Yes, lawsuits against the existing EM.
Not valid against the new... Whatever the new owners would call it.

Those reservation holders and lock-ins are in the same boat as the private investors.
If EM sells in bankruptcy, they only get a sliver of the purchase price, and that depending on where a judge places them in the line.

I think that the loans are worked out in a way that only Elio Engineering and Racer will get anything. Reservation holders will have to rely on the new companies good will.

 

[Elio Amazed]

I think that the loans are worked out in a way that only Elio Engineering and Racer will get anything. Reservation holders will have to rely on the new companies good will.

Again, they can sign any agreement they want prior to bankruptcy, but when it happens, the judge becomes the king and has the final word.
That said, I agree in that I fully expect the private investors, including Racer and Stu, to get all of the pitiful amount paid for the ashes.
And, like I said, I agree on our fate being tied directly to the new owner's goodwill and nothing else at that point.

 

[Doug McDow]

There is a whole lot of speculation going on here!!!

 

[Elio Amazed]

There is a whole lot of speculation going on here!!!

Granted. A whole lot of what-ifs, but speculation seems a logical train of thought given what sparked it.

 

[Elio Amazed]

Good thing is, Elio is not relying on the ATVM loan, so we probably don't need to be worried if they never get it.

That was sarcasm right?