Elio’s $4,484,755.50 Catch-up Payment

[3wheelin]

Who do you think has bankrolled most of Elio motors? General Public Investors (i.e. reservations and the Reg A+ stock). Elio found they do not invest enough and thus you see where they are at right now. Who has been to Elio Motors? Where is Elio Motors? Elio motors exists either at Pauls house, a mail stop or a plant that has been shuttered since 2012. Did you make your reservation after seeing the plant? The R&D center? Corporate headquarters? My guess is nobody has been to any of it. How about those reservation holders from 2013-2015. They never seen any financials. As from what I can tell, most never read the required ones that Elio produces.

I can tell you from experience, big time investors want to see the financials. Then they want you to show even more. Then more after that. When that's done they need to see the operation and then the future plans (which must equate with the financials). Where this all goes wrong is when it's "the next big thing" and people just throw money at it without thinking or doing research. Elio is way past "the next big thing" as they don't market it like they used to. They even figured it out. Now it's the "Ultimate Commuter Vehicle" as per their website.

Read post #19 lol

 

[Rickb]

Hahaha Read post #19 (mine) and post #28 (RickB).

As a small time investor in any company or product I have interest in, I would need to see the same things required as the big time investor............and there is still risk involved as an investor. If I was investing in a startup vehicle company, I would need to test drive the Beta vehicle resulting from the R&D funding to verify my interest in investing and wanting to purchase the vehicle.

I made my Elio refundable reservation after Paul and Stu’s presentation to the Caddo Parrish Commission and EM’s approved acquisition of a manufacturing plant......what could possible have gone wrong after that major milestone event?

 

[RSchneider]

As a small time investor in any company or product I have interest in, I would need to see the same things required as the big time investor............and there is still risk involved as an investor. If I was investing in a startup vehicle company, I would need to test drive the Beta vehicle resulting from the R&D funding.

You never see the same things as a big time investor. You might get a dog and pony show and that's about it. I doubt you went through all of the FUV financials in detail, looked over the resumes of every employee, discussed milestones that need to be met and if not, what happens, a forecast on the next 5 years, risk analysts of future competition and so on. I've worked for investment firms where I go on with a team of others to look over everything, then make a report. After that it's up to the investment firm to decided if it's a good direction to go. Do they get it right all of the time? Nope. Do they protect themselves? Yep.

Typically, the big investors have points in the project where they must see certain milestones met as a certain time. If those are not met, the investing stops and a decision is made to go on or walk away. Going on can mean a change in management or business plan. Plus, they don't give you the whole amount at once. A bit at a time.

 

[3wheelin]

............or praise and high-five Paul for a successful Elio Marketing Campaign and getting Elio Motors to market......the OTC Market. Credit for the first successful Start Engine Reg A+ $15,000,000 funding round ear marked to build the 25 E’s for testing. That was $3,000,000 more than Pauls’s stated need to get it done. As I recall, the bulk of that funding round went to Paul’s engineering firm for some last minute engineering changes and the remainder was used to build 2.5 E’s with no engine or drive train. A build team member stated the parts they had didn’t fit. I requested and received my Elio Reservation refund soon after. No progress whatsoever since then. Sorry, brought back disappointing memories from my decade of following Paul’s progress.

My guess is EM needed to surround themselves with these marketers to garner more reservations to sell a 7K 3wheeler (half a car, half the price was genius but ambitious) in an unproven market. When delays started to happen the 65+ reservation numbers didn't move much- a completed R & D with verifiable results (heck, I would have tested one with a donor drivetrain just to see if they'll get close to the 84mpg then announce the result) could've potentially raised that number. Even big name TESLA who's got a winner in their hands with the TESLA 3 @ 500K+ reservations...and counting knows they will not make money or barely with the base 35K. And that's why I praised Arcimoto and EMV for using their limited funds wisely and spends it where it's needed most- a completed FUV and SOLO! IMHO.

 

[Rickb]

My opinion is limited to no funding should be spent on marketing/advertising before the vehicle has reached the starting line to production and retail sales revenue is rolling in. The limited startup funds should be spent on R&D......unless it’s privately funded, then spend it how you want, but with simple no risk refundable reservations ONLY to show interest in the vehicle. Surround yourself with engineer’s, designers, technicians, fabricators, and builders, not an exclusive marketing team. There would have been enough investor required market interest shown from taking basic online refundafundable reservation deposits as proven by Arcimoto and EMV’s business models. They used private funding to Beta vehicle development and then went public thereafter to help fund manufacturing plans and getting the fully certified production vehicle to the starting line.

 

[RSchneider]

There was a documentary that was on Netflix that covered EV's. They were there when Tesla was trying to build and market the first Roadster. If you look at what they were doing then as compared to now, it shows that building within what you can afford, can work. Elon was worried because he was running out of money and he was thinking of closing up shop. Their factory was just a big warehouse where they were sticking in an EV driveline into a Lotus. Then there were issues of some of the cars not working and so on.

I've seen many places start off the same way. What they do is start off small and get bigger over time. Starting big requires big money. Sometimes that big money is not there.

A this point if I was Elio, I'd do everything I could to get out from that factory and get out of LA. Set up shop back in Phoenix and slowly get the car developed and completed. Verify the mileage and build cost. Then find a partner. It can be Chinese, Indian etc... Utilize them and their contacts to either build or find a new place for manufacture. Change the business plan to initially offer more expensive cars to a limited amount of people to bring in money. Get them to be the spokespeople for it. Then work on automating the plant to where you can turn up the volume.

The lease payments, equipment payments and that job creation fine are just bleeding the company dry to where they have their hands tied. I'd rather hear about real updates without a plant as opposed to a plant and none at all. The plant lease is about $210k/mo, the equipment loan is about $173K/mo. Then they have that jobs creation which is going to be $7.5M by September, 1 2019. I assume they will extend it again but there will be a $7.5M payment at sometime. They get fined $5K/year for every non full time person below the 1500 level. That's something that offers zero for getting the company on it's feet. It's just a frivolous fine that just won't go away.

 

[3wheelin]

You never see the same things as a big time investor. You might get a dog and pony show and that's about it. I doubt you went through all of the FUV financials in detail, looked over the resumes of every employee, discussed milestones that need to be met and if not, what happens, a forecast on the next 5 years, risk analysts of future competition and so on. I've worked for investment firms where I go on with a team of others to look over everything, then make a report. After that it's up to the investment firm to decided if it's a good direction to go. Do they get it right all of the time? Nope. Do they protect themselves? Yep.

Typically, the big investors have points in the project where they must see certain milestones met as a certain time. If those are not met, the investing stops and a decision is made to go on or walk away. Going on can mean a change in management or business plan. Plus, they don't give you the whole amount at once. A bit at a time.

.....in short EM would've had a healthy financials if they followed what they initially set to do, finish the R&D and then market the result! And that's where most startups fail....it's business first instead of getting to the heart and soul of a project- get it done and show and tell.

 

[3wheelin]

There was a documentary that was on Netflix that covered EV's. They were there when Tesla was trying to build and market the first Roadster. If you look at what they were doing then as compared to now, it shows that building within what you can afford, can work. Elon was worried because he was running out of money and he was thinking of closing up shop. Their factory was just a big warehouse where they were sticking in an EV driveline into a Lotus. Then there were issues of some of the cars not working and so on.

I've seen many places start off the same way. What they do is start off small and get bigger over time. Starting big requires big money. Sometimes that big money is not there.

A this point if I was Elio, I'd do everything I could to get out from that factory and get out of LA. Set up shop back in Phoenix and slowly get the car developed and completed. Verify the mileage and build cost. Then find a partner. It can be Chinese, Indian etc... Utilize them and their contacts to either build or find a new place for manufacture. Change the business plan to initially offer more expensive cars to a limited amount of people to bring in money. Get them to be the spokespeople for it. Then work on automating the plant to where you can turn up the volume.

The lease payments, equipment payments and that job creation fine are just bleeding the company dry to where they have their hands tied. I'd rather hear about real updates without a plant as opposed to a plant and none at all. The plant lease is about $210k/mo, the equipment loan is about $173K/mo. Then they have that jobs creation which is going to be $7.5M by September, 1 2019. I assume they will extend it again but there will be a $7.5M payment at sometime. They get fined $5K/year for every non full time person below the 1500 level. That's something that offers zero for getting the company on it's feet. It's just a frivolous fine that just won't go away.

Very well said RSchneider!

 

[Rickb]

You never see the same things as a big time investor. You might get a dog and pony show and that's about it. I doubt you went through all of the FUV financials in detail, looked over the resumes of every employee, discussed milestones that need to be met and if not, what happens, a forecast on the next 5 years, risk analysts of future competition and so on. I've worked for investment firms where I go on with a team of others to look over everything, then make a report. After that it's up to the investment firm to decided if it's a good direction to go. Do they get it right all of the time? Nope. Do they protect themselves? Yep.

Typically, the big investors have points in the project where they must see certain milestones met as a certain time. If those are not met, the investing stops and a decision is made to go on or walk away. Going on can mean a change in management or business plan. Plus, they don't give you the whole amount at once. A bit at a time.

I felt no need for detailed big time investor research. My small time investment and reservation research needs stopped at no signs of R&D Milestone progress and or an Elio test drive Milestone event, after following EM since 2008, to include multiple email conversations with Chip Stempeck which turned out to be marketing Milestones, not the indicated production milestones we had discussed.

SEC Filings provide investors all they need to know.

You call it a “Dog and Pony Show”..................I call it marketing a dream to folks that needed and wanted affordable transportation that were sold on the gamble.

 

[TexasTesla]

Paul definitely utilized a very intensive PR & marketing campaign to secure advance reservations (and the much needed cash that came with the majority of these advance reservations).

And don’t forget that Paul made frequent production date promises. Paul publicized at least six different production date timelines.

IMHO...Elio deposit holders became comfortable with with the thought that production was always just around the corner.

Paul made dozens of statement over the years that turned out to be false, or misleading.

Is Elio a successful marketing company... definitely!

Is Elio a successful R&D company...not so much! LOL