Automotive Startups Face Long Odds

[Elio Amazed]

Where does this leave people with low to middle incomes that can't afford twenty thousand plus vehicles?

Right where the car manufacturers want them... of course.
The more used vehicles those poor to middling people have no choice but to buy...
The easier it is for those who can afford new ones to trade in or sell their ~two-year-old vehicles.
The more demand for used vehicles, the more used vehicle owners can get out of theirs when they sell.
Which gives those who can afford new vehicles more money to throw at more expensive, feature laden new cars.
There's always a purpose. Always follow the money. There is no altruism in the mega-corporate auto industry.

 

[Rickb]

Was just reading one analyst's opinion that American automakers need to slow down production of sedans as the SUV and truck sales are strong. Where does this leave people with low to middle incomes that can't afford twenty thousand plus vehicles? They either keep what they have or buy used. I believe there will soon be a huge market for a new, inexpensive vehicle. The Elio factory will have problems keeping up with the demand when they do start selling them. That's a good problem. A investor that is forward thinking would love to be a part of that. The questions are: Is the Elio the best one to invest in? Are the other makers, foreign or domestic, able to fill this market need better? I believe the Elio is in the best position to accomplish this. Other new makers are not anywhere close to having large production capabilities and the established companies are too big to make a low profit vehicle. Looking forward to getting my Elio.

The Elio is marketed as an affordable "&" vehicle........a supplement to the family car. The vast majority of low to middle income people will still have to keep what they have and perhaps buy a new Elio as a secondary commuter vehicle providing they can even afford the family car they have. There are a handful 3 wheeler commuters about to come to market, but market acceptance for this NEW CLASS of vehicle is still unproven. I agree that demand is likely, but not strongly enough to risk investing in an unproven market and new vehicle startup company beyond a refundable reservation deposit in show of support.

 

[booboo]

The Elio is marketed as an affordable "&" vehicle........a supplement to the family car. The vast majority of low to middle income people will still have to keep what they have and perhaps buy a new Elio as a secondary commuter vehicle providing they can even afford the family car they have. There are a handful 3 wheeler commuters about to come to market, but market acceptance for this NEW CLASS of vehicle is still unproven. I agree that demand is likely, but not strongly enough to risk investing in an unproven market and new vehicle startup company beyond a refundable reservation deposit in show of support.

I disagree a bit. Elio has said who would NEED one. I think of the student with a backpack.
The whole deal with Elio is the 5 must haves. I have never seen a better list.
If it gets made the way Elio says, it will be an awesome platform.

 

[Rickb]

I disagree a bit. Elio has said who would NEED one. I think of the student with a backpack.
The whole deal with Elio is the 5 must haves. I have never seen a better list.
If it gets made the way Elio says, it will be an awesome platform.

I agree that the three wheelers appeal is to a wide range of market demographics and why market acceptance is 'likely' for this new class of vehicle, but still has to be proven. I think the one, two, or three seat enclosed three wheeler platform is awesome in general.

EM's original 5 must haves was marketing genius that was proven by 65,000 wants, needs, and desires.

 

[RSchneider]

It took 4 years for Elio to get 65K reservations. So, that might be a hangup for many investors as it's just over 16K per year.

Elio could do great in China (which I have been there for the last 5 months because of work). The only change is they would need to make it electric. As in China, they are phasing out the lead acid electric trikes and those phased out the gas/diesel powered ones.