Elio Belly Up. Fake News Or Not?

[Ekh]

I respect your posts. The forward looking statements clause following all EM's marketing is to protect the company against litigation from false claims and advertising. The required SEC filings aren't crap, but are required financial documentation to inform and protect all investors so they can make informed decisions. They are factual statements made in the process leading up to the startup's probable future........success or failure. I'm hoping for success. It's smart for investors to know exactly where a company is financially speaking, why targets aren't being met, and where it's going.

A curious question: With the Elio knowledge you've gained over the past few years, would you personally or would you highly recommend your friends and family to place a non-refundable Elio reservation deposit, or rather encourage a refundable deposit? All-in seems riskier today based on EM's filings, than it did in 2013 when reservationists thought they would be taking delivery in 2014-15. I agree that there is no need for panic, but enthusiasts might be a little more cautiously optimistic and more understanding of both sides of EM's possible outcome.

With that said, I'm going with 3wheelin's wise new signature and won't post another word about EM's filings since financials leading to progress apparently mean nothing to either a hardcore enthusiast investor or to a no risk investor. Let the newbies do their own research.

Thank you for the kind words. My recommendation would be (and has been) to make an all in $1,000 reservation if, and only if, you are convinced of the importance of the project and want your car a few months sooner than others. Otherwise, reserve at a lesser amount. In no case should you risk money you cannot afford to lose if it all goes south.

The same goes for investing in Elio stock. I think it's lower risk than a lottery ticket, but if you can't afford to lose it and need instant gratification, don't buy it. It might make you rich some day, but it is highly speculative. Spend play money only ... or to make a moral statement.

I never advise making a want-in deposit. Your money is not at risk, but getting it back will be a major hassle, and you gain no priority in line from a want-in deposit.

In general, I believe if you make a risky move, assume you've lost the money, and rejoice when or if things work out. Fretting over it accomplishes little. As the spy in Bridge of Spies asks Tom Hanks, "Would it help?"

These are very personal decisions. I always favor walking your talk and putting something into the pot ... but only if you can afford it.

Elio is miles ahead of where it was in 2014. I think today it's 60/40 they will succeed. I do know that one Elio exec just went all-in on his 9th car. Draw your own conclusions.

 

[Coss]

Thank you for the kind words. My recommendation would be (and has been) to make an all in $1,000 reservation if, and only if, you are convinced of the importance of the project and want your car a few months sooner than others. Otherwise, reserve at a lesser amount. In no case should you risk money you cannot afford to lose if it all goes south.

The same goes for investing in Elio stock. I think it's lower risk than a lottery ticket, but if you can't afford to lose it and need instant gratification, don't buy it. It might make you rich some day, but it is highly speculative. Spend play money only ... or to make a moral statement.

I never advise making a want-in deposit. Your money is not at risk, but getting it back will be a major hassle, and you gain no priority in line from a want-in deposit.

In general, I believe if you make a risky move, assume you've lost the money, and rejoice when or if things work out. Fretting over it accomplishes little. As the spy in Bridge of Spies asks Tom Hanks, "Would it help?"

These are very personal decisions. I always favor walking your talk and putting something into the pot ... but only if you can afford it.

Elio is miles ahead of where it was in 2014. I think today it's 60/40 they will succeed. I do know that one Elio exec just went all-in on his 9th car. Draw your own conclusions.

9th? Is he trying to get a fleet going? <note* anything over 5 is considered a fleet>

 

[Marshall]

Elio has not raised any money from operations. That means Elio hasn't built or sold any cars. That is true, but easily misconstrued. They go on to say they raise money from loans and investors, and expect to go on doing so. Tesla did precisely the same thing!

These statements are cautionary -- and IMO Elio has not been careful enough in their phrasing so as to avoid giving uber-trolls like Joe Borass a convenient weapon. However, they do not indicate a need for panic on our part. All this statement actually says is, "we haven't made any money from building cars, and we won't until we have procured sufficient financing from lenders and investors. We expect to continue to accrue losses until we commercialize our vehicles, and it is possible we won't make any money then, either."

That's all true. They are burning money, and it is POSSIBLE they won't make any money once they launch operations. But everyone on tis forum knows that the math of the Elio is such that the vehicle will be immensely profitable, and 62,820 reservations (as of this writing) demonstrate that demand is real.

SEC Filings are designed to protect the company against litigation for false claims and advertising. They ARE NOT statement of a probable future.

Do not panic over this crap. And Borass, as I have said before, has no personal integrity -- as I know from personal experience with him. Unfortunately, others may believe his piece, but he is a burp, not even a belch, in the long process of pulling this project to completion.

Some people just don't get the idea of INVESTMENT. NOBODY makes money until they start yo sell the product and SOMEBODY (called investors) has to come up with the startup capital and working capital until the income stream matches or exceeds the operational expenditures. But some people just don't get it and think anything not guaranteed for immediate returns is a scam.

I wonder how much of the $122M is in the form of preferred stock or options which don't actually "cost" Elio except in future earnings. If I'm reading it right, it probably makes up most of the difference between total debt and operating debt.

 

[Rickb]

"....I'm going with 3wheelin's wise new signature and won't post another word about EM's filings...."

Thank you.

As for me, I have no problem recommending $1K All In (non-refundable) to friends and family.

No thanks needed. My choice to ignore simply puts more pressure on you to read the EM postings on your own and report your findings. Please keep me in the loop. Thank you.

 

[Ekh]

9th? Is he trying to get a fleet going? <note* anything over 5 is considered a fleet>

It's complicated.

 

[Coss]

It's complicated.

I'll take your word for it, and leave it at that.

 

[voyager]

<Political statement removed>

 

[Ty]

This news is more of a handpicking of facts from a document that is ultra-conservative by nature and, in no way, paints a dire picture of Elio to me. Do they need money? Sure.
BASF isn't known for signing on to sinking ships. Nor are the other suppliers. To sit back in our lounge chairs and claim to have a better grip on Elio's potential is to say you have a better understanding of the auto industry than the CEOs of 63 suppliers. 63 suppliers are on board with Elio. 63. Think about that. There are 63 companies that believe enough in Elio to allocate resources towards the endeavor. 63. Imagine the work involved in selecting 63 companies to support your business plan. I can't even get one of my girls to pick a pair of shoes!

 

[slinches]

<Political statement removed>.

At least it's not fake news.

And it's possible that even if it's a bad thing for the DOE loan programs, it may still be good for Elio Motors. Whether the delays are on the part of the DOE or EM, it will likely push the ATVM loan to a resolution (one way or the other) by the end of January.

 

[Ty]

Wow. When was the last time you clicked through all the suppliers? There are a bunch that I was unaware of... from MPG (connecting rods), Prestone (chemicals and coolant), to Keikert (door latch and striker), to dozens of others that I don't know what they do. Amazing.