Elio Motors @ New York Auto Show 2015

[RUCRAYZE]

It's just sad when any manufacturer predicts that advertising costs will be almost 8% of the cost of each and every vehicle sold.

Welcome to capitalism .....

 

[Ekh]

I would bet that current investors are being given access to all the information you asked about as this would be standard investment information but of course would be subject to non-disclosure agreements. We do however have have an Elio Motors financial plan from 2012 as provided to the Caddo Parrish commission. The specific numbers would have obviously changed since then however the general plan has not likely changed much so this document provides great insight into how EM's financials are structured and I would bet that current investors are likely provided with an updated version of this very same document as it appears that EM has been working off this document, and modifying it as needed, since very early on.

https://drive.google.com/file/d/0Bxh8JmkBAL7weUJKTFBFQmJuRVE/



This is the 'Vehicle Cost' tab of the EM financial spreadsheet discussed above. It looks like I was a bit off in remembering the exact percentage however the fully manufactured cost is still less than 75% of the retail price and it would make sense that EM would be moving the numbers to keep that percentage about the same.

View attachment 5306

Just from what has leaked out over time I am certain that Paul Elio is not exaggerating when he says that he has the numbers to back up his claims.

Well, the sticker price hasn't jumped from $5959 to $6800 for amusement's sake -- I suspect that all these numbers are pretty out of date. The car is a whole lot more tightly specified now than it was then, and I suspect there's significant upward movement in the cost to match.

 

[JEBar]

for a start-up company trying to get its name and product before the public on a national level, 8% doesn't sound too bad

 

['lio]

[...]EM is also apparently preparing to expand their fundraising effort to take advantage of the new equity crowdfunding option for both accredited and non-accredited investors which is becoming available thanks to the new SEC rules taking effect in June.

[...] I do not know what incentive EM would give investors who prepay, locking in the $6800 price?, however remember that from the EM plans we have seen the actual cost (including corporate and plant overhead, parts, and labor) of building the vehicle is only about 60% of the retail cost of the vehicle with the rest going towards profit margin and costs beyond actually building the vehicle so EM does have some wiggle room in there.

For those wondering about the new SEC rules regarding equity crowdfunding as investments this article does a pretty good job explaining what is happening: http://www.forbes.com/sites/chanceb...s-equity-crowdfunding-with-jobs-act-title-iv/

The incentive could be a sort of layaway in which one would receive a paid for (or partially paid) Elio. That would be much more attractive than using financing after getting the vehicle.

With at least a year to go, I could see myself making monthly payments towards the purchase price, if that would be possible. I would be willing to take a bigger risk than my current all-in amount and the reward could be a much smaller discount than the current 50% on all-in. It's probably not viable at this point, but the closer EM gets to receiving the necessary funding, the more pre-paying (for a relatively small reward) might be appealing.

 

[Folks]

Paul has that habit of inappropriate little laugh, not after a "joke" or cool insight seems to put it in at odd times- I know it's not intentional , least we forget he's an engineer first. I think EM would be best served in this arena with a dude that knows the product as well as Paul, but the polished assurdeness of a P.R. staffer.

Nothing is more competitive than selling Insurance. Years ago as an Insurance agent I received a call from a Corporate President of a rather large Company. He was in search of several particularly large insurance policies to cover certain of his Officers known as key man insurance for each. Need I say that this was probably the biggest break in my career. The time came for my presentation in his office. To make a long story short I bungled, stuttered and shuffled my way completely and almost blew the entire presentation. I could not have looked more amateurish in my presentation. As it turned out the President felt sorry for me in that he knew all Insurance was going to cost pretty close to the same anyway. So feeling a little sorry for me and the presentation and thinking that perhaps I was little new in sales he thought, I'll make this little guy's day and order the policies anyway.
He also felt enough compassion give me some salesmanship advice. He coached me in that I aught to develop individual presentations for each type of prospect that I might have to present. I let him get completely through with his advice. Just before I closed the door to his office I wheeled on one foot and told him the following. I said Sir you've just witnessed my "Important Executive" presentation. LOL

 

[Kuda]

Well, maybe. The ATVM business, hopefully. But we're still at square one -- a "well funded group of investors" is going to want some say in the business and probably a significant amount of stock and the control that goes with it. That's been the sticking point all along in finding investors. The big boys want control, and Paul wants to keep his baby intact. The mass-market investment plan offers a way around that IF it works. So far Elio has attracted car buyers, but not equipment buyers (so far as we know). For many people, $1,000 for an unbuilt car is as big a risk as they're willing to take.

I'd like to see a breakout of ALL the costs in getting through the first year's production, AND the cost-per-car, including overhead and existing debt service, AND how the stock is currently held. THEN it might look like an investment instead of a flyer. Right now, it's a flyer. People do invest on their feelings, but at some point you have to do a risk analysis and make that a big part of your decision making.

I may be boarding on the delusional, but I sensed that Paul
intimated that Comau had the selling of the equipment well in
hand. Given China's expansion in international auto mfr.,
i.e. Volvo, et al (http://time.com/26840/china-buying-foreign-car-makers/)
It makes sense that China will need auto Mfg. equipment & will like buying
at a discount, that's for sure. Also with proposed new US factories in the offing
(http://www.thestate.com/news/business/article13942958.html) the excess Elio
equipment (as an asset) becomes even more valuable................

 

[Ekh]

I may be boarding on the delusional, but I sensed that Paul
intimated that Comau had the selling of the equipment well in
hand. Given China's expansion in international auto mfr.,
i.e. Volvo, et al (http://time.com/26840/china-buying-foreign-car-makers/)
It makes sense that China will need auto Mfg. equipment & will like buying
at a discount, that's for sure. Also with proposed new US factories in the offing
(http://www.thestate.com/news/business/article13942958.html) the excess Elio
equipment (as an asset) becomes even more valuable................

Hope you're NOT delusional.

 

[LillyMayPatterson #1685 & #5648]

Thanks Guys, I'm learning a lot. This notion is very exciting and I appreciate you sharing this knowledge and thoughts.

 

[ecdriver711]

Thanks Guys, I'm learning a lot. This notion is very exciting and I appreciate you sharing this knowledge and thoughts.

Same here!

 

[Ekh]

Here's something to consider -- let's assume that the SEC regs do change, and smaller investors can ante up. This stock is really an all-or-nothing gamble, because even if the company doesn't fold, unless it's a huge success, there's no market for your stock -- you can't even sell it for a loss because there's no market for it and no one to buy it (if it's failing or unsuccessful). It has, in stock brokering terms, no liquidity.

That's why I like the idea of offsetting the risk of the stock by applying some or all of the investment money towards your first Elio. It would actually make your money more of a secured loan -- secured by the car itself, at least in part. You could still lose it all if the car never goes to production, but if it DOES go to production, you could actually see a pretty good return on money you were going to spend anyway (the money for the car itself, of course). For example, let's say you're all in for 1K. You invest another $5K, some of which will be applied towards your purchase commitment. Your Elio will now cost you $800 (plus tax, delivery and options). You've pre-spent the money, but you get some portion of it back in rolling hardware -- rolling stock, if you prefer the term -- provided the production line ever starts.

I have no notion of whether such tactics are possible, legal, or even something Elio Motors would like to do. But they need cash now, and that might be one way to raise some.

What do you all think?

By the way, OT, On Wisconsin! About time somebody stomped on my neighbors to the South.