I think I read some where Elio wants to borrow $240 mil to get production started? Would it make more sense to borrow a lot less, and start out production slow? I think starting out slow would be more beneficial, and a lot less risky, than borrowing big. When in the hole for big bucks, any hiccup in the economy or business plan could put them under real quick. Your thoughts?
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Borrow $240 Mil, Or Borrow Alot Less And Start Out Slow?
- Thread starter ozarkbugg
- Start date
Charlie G
Elio Addict
In order to turn a profit and hit the projected price point, they need to purchase and produce in bulk and at significant speed.
The funds they need yet to get started are to finish development, set up the assembly line, hire and train employees, purchase inventory, and actually build the things.
They can't really get started until all the pieces are in place
The funds they need yet to get started are to finish development, set up the assembly line, hire and train employees, purchase inventory, and actually build the things.
They can't really get started until all the pieces are in place
RUCRAYZE
Elio Addict
Big bucks??
If your talking money, how do you know if it's too small or too large an amount,
if your talking animals, I think they count the bumps on the head, have no idea why they them that which I grew up thinking a a set of racks part of the female anatomy -hey but I'm from NYC
TCBronson
Elio Addict
I wondered about this also. If they could start production with less money even if the first 1000 are hand built, it would boost confidence in the public to step up and place their orders.
NSTG8R
Elio Addict
Well, without a functioning assembly line, each one would indeed need to be 'hand built' and cost so much to produce that no one would buy one. The "economy of scale" is what will allow them to reach their under 7k per unit goal. Now if they could "kit" the parts, I'd be more than happy to give them 5k tomorrow and build it myself.
I'd love to be a Beta-tester, and give them real world input on performance, efficiency and things that could use "tweaking" to improve the full production model.
Johnapool
Elio Addict
Johnapool
Elio Addict
Gatorman, I have already applied for that position....
DAVID BROWER
Elio Addict
WHEN PORSCHE STARTED OUT IN THE LATE 40's THEY RENTED AN EMPTY SAWMILL IN GMüND AUSTRIA AND BUILT ONE CAR .
THEY SOLD THAT CAR TO RAISE MONEY TO BUILD TWO MORE . THEY SOLD THE TWO AND BUILT FOUR ..............
ONCE THEY GOT A FEW OF THEM OUT ON THE ROAD AND IN SOME RACES THE ORDERS STARTED COMING IN .
SOON THEY NEEDED AN ACTUAL FACTORY AND MOVED THE COMPANY TO STUTTGART .
IT WAS MANY YEARS BEFORE THEY MANAGED TO BUY BACK THAT FIRST ONE !
IT REALLY WAS POSSIBLE TO START A CAR COMPANY THAT WAY 60 YEARS AGO BUT THOSE WERE MUCH SIMPLER MACHINES .
PORSCHE WAS ALSO USING CHEAP & AVAILABLE OFF THE SHELF VW MOTORS , TRANSMISSIONS BRAKES & SUSPENSION .
IT IS A LOT EASIER TO MODIFY AN EXISTING COMPONENT THAN CREATE AN ENTIRELY NEW ONE
THE REGULATIONS THAT GOVERN WHAT YOU MUST & CAN'T DO REQUIRE LAYERS OF APPROVAL .
THE PAPERWORK ALONE WOULD HAVE KILLED PORSCHE IN THE EARLY DAYS .
ELIO IS FOLLOWING THAT PART OF THE PORSCHE MODEL BY USING AS MANY ALREADY EXISTING PARTS AS THEY CAN .
IT IS ADMIRABLE THAT THEY HAVE CREATED THEIR OWN ENGINE .
PAUL ELIO CERTAINLY DOES HAVE SOME GRAND DREAMS WITH VAST PRODUCTION NUMBERS .
IN THE END , THEY WILL MAKE ALL THE ELIOs THAT THEY CAN .
MANUFACTURING CAPACITY AND THE MARKET ( SUPPLY & DEMAND ) WILL DETERMINE THE ACTUAL NUMBERS .
THAT IS ONCE THEY START SHOWING UP ON THE ROAD & IN RACES .
THEY SOLD THAT CAR TO RAISE MONEY TO BUILD TWO MORE . THEY SOLD THE TWO AND BUILT FOUR ..............
ONCE THEY GOT A FEW OF THEM OUT ON THE ROAD AND IN SOME RACES THE ORDERS STARTED COMING IN .
SOON THEY NEEDED AN ACTUAL FACTORY AND MOVED THE COMPANY TO STUTTGART .
IT WAS MANY YEARS BEFORE THEY MANAGED TO BUY BACK THAT FIRST ONE !
IT REALLY WAS POSSIBLE TO START A CAR COMPANY THAT WAY 60 YEARS AGO BUT THOSE WERE MUCH SIMPLER MACHINES .
PORSCHE WAS ALSO USING CHEAP & AVAILABLE OFF THE SHELF VW MOTORS , TRANSMISSIONS BRAKES & SUSPENSION .
IT IS A LOT EASIER TO MODIFY AN EXISTING COMPONENT THAN CREATE AN ENTIRELY NEW ONE
THE REGULATIONS THAT GOVERN WHAT YOU MUST & CAN'T DO REQUIRE LAYERS OF APPROVAL .
THE PAPERWORK ALONE WOULD HAVE KILLED PORSCHE IN THE EARLY DAYS .
ELIO IS FOLLOWING THAT PART OF THE PORSCHE MODEL BY USING AS MANY ALREADY EXISTING PARTS AS THEY CAN .
IT IS ADMIRABLE THAT THEY HAVE CREATED THEIR OWN ENGINE .
PAUL ELIO CERTAINLY DOES HAVE SOME GRAND DREAMS WITH VAST PRODUCTION NUMBERS .
IN THE END , THEY WILL MAKE ALL THE ELIOs THAT THEY CAN .
MANUFACTURING CAPACITY AND THE MARKET ( SUPPLY & DEMAND ) WILL DETERMINE THE ACTUAL NUMBERS .
THAT IS ONCE THEY START SHOWING UP ON THE ROAD & IN RACES .
NSTG8R
Elio Addict
Okay John, you send them the "performance and handling" data since you live down in the land of hills and curves, and I'll use mine to give them the highway mpg data since that's what it'll be doing 99% of the time....Sounds like we've got a plan.
P.S. - Need someone to build it for you? It's kind of what I do all day.