Elio Progress

[NorTracNY]

I agree. It takes many years still to get a car from the drawing board to the showroom floor. And that's with an established car company. Tesla was founded in 2003 and didn't ship the Roadster till 2008 and that was with Lotus providing most of the car.... $70M from Elon Musk, $50M from Chrysler, and $50M from Toyota didn't hurt either... nor did the $465M from the ATVM.

So, Elio, founded in 2009 on a shoestring budget NOT using an existing manufacturer to build their car, isn't doing too badly. Not bad at all, actually. It is only our impatience that makes it seem like it's taking forever.

I'm not as familiar with the history of Tesla. I only knew they produced the expensive, high end Roadster first. I think Elio is doing fine except for the pushing off on dates. When did Tesla first say they would ship a Roadster versus when did it occur?

 

[Ty]

I'm not as familiar with the history of Tesla. I only knew they produced the expensive, high end Roadster first. I think Elio is doing fine except for the pushing off on dates. When did Tesla first say they would ship a Roadster versus when did it occur?

I don't know that one. I was just trying to make the point that even a very well funded car company that uses an existing chassis took quite a bit of time to get moving on production. Even with Lotus providing most of the car, it took Tesla 5 years to give us the Roadster... it also took about $565M to get it going. Elio is going to seem like such a good deal once production starts. As a bonus, it looks like Elio may become profitable on a much shorter time-table than Tesla... Lets see... Tesla has been a company now for 13 years (or, 8 years after production began) and just posted their first positive quarter. How long will Elio have to produce before showing a profit? On the other hand, Tesla is already worth about half what Ford is and Tesla is a new company!

 

[Rickb]

I don't know that one. I was just trying to make the point that even a very well funded car company that uses an existing chassis took quite a bit of time to get moving on production. Even with Lotus providing most of the car, it took Tesla 5 years to give us the Roadster... it also took about $565M to get it going. Elio is going to seem like such a good deal once production starts. As a bonus, it looks like Elio may become profitable on a much shorter time-table than Tesla... Lets see... Tesla has been a company now for 13 years (or, 8 years after production began) and just posted their first positive quarter. How long will Elio have to produce before showing a profit? On the other hand, Tesla is already worth about half what Ford is and Tesla is a new company!

My math totaled a $105 Million of private funding to get the Roadster to production in 2008, 5 years after the business startup. The balance of the $565 you mentioned was raised during the R&D of the Tesla Model S. Please keep in mind that Tesla was manufacturing vehicles prior to the ATVM Loan approval and repaid the $465 Million ATVM loan early to include $12 Million in interest. Tesla details should probably be discussed in the Tesla Thread, although this should be ok as it is a comparison of the 2 companies R&D funding. My understanding is that EM has spent well over a $100 Million over 9 years to date.......not exactly a shoestring budget. These totally different car companies probably shouldn't be compared until after EM delivers the first Elio. Tesla hasn't shown profit until recently because money was going back into the company. Same will hold true with EM.......years before financial statements balance in the black.

The other interesting comparison is that EM is building a car with off the shelf parts from a long list of suppliers, Tesla built a car with an off the shelf Body Part from Lotus. The Tesla emphasis was engineering and development of an EV drive train before moving on to the development of the Model S, X, and 3.

 

[Ty]

My math totaled a $105 Million of private funding to get the Roadster to production in 2008, 5 years after the business startup. The balance of the $565 you mentioned was raised during the R&D of the Tesla Model S. Please keep in mind that Tesla was manufacturing vehicles prior to the ATVM Loan approval and repaid the $465 Million ATVM loan early to include $12 Million in interest. Tesla details should probably be discussed in the Tesla Thread, although this should be ok as it is a comparison of the 2 companies R&D funding. My understanding is that EM has spent well over a $100 Million over 9 years to date.......not exactly a shoestring budget. These totally different car companies probably shouldn't be compared until after EM delivers the first Elio. Tesla hasn't shown profit until recently because money was going back into the company. Same will hold true with EM.......years before financial statements balance in the black.

The other interesting comparison is that EM is building a car with off the shelf parts from a long list of suppliers, Tesla built a car with an off the shelf Body Part from Lotus. The Tesla emphasis was engineering and development of an EV drive train before moving on to the development of the Model S, X, and 3.

My point exactly. They are taking two different paths and just because Elio isn't going as fast as Tesla (or as fast as we all wish), it doesn't mean they are not making adequate progress. The real impetus for immediate action in the funding arena would be if Elio was about to lose the Shreveport facility. I think they have too much time and money invested in getting that going to not use it. If it came down to a choice between accepting a loss of a chunk of the company or a loss of that facility, I think Paul would suck it up and allow an investor to buy a chunk of the company just so they don't lose the facility. Imagine, if you will, at how things would slow to a crawl if they lost that facility. Instead of being a company with a manufacturing facility in the final stages of engineering their vehicle, they'd be a company with no facility and no real prospects of a facility... much less the additional funding for said facility!

If the requirement is "produce vehicles at the Shreveport facility by such and such a date" then Paul needs to have a couple of Elios ready to be completed that he can then "produce" in Shreveport to meet the requirement if not the intent...

 

[NorTracNY]

Paul has presented the facility as a $400M value to Elio Motors. "Elio Motors has raised a total of $102M through June 30, 2016" This was why he is ONLY looking for $300M more for production. "Recent automotive product launches cost $750M-$1B" He's not claiming that it's costing him significantly less to get the Elio to production than other automakers. That Shrevepot facility is KEY.

I saw an interview where the one politician was saying, "Shreveport needs to forget about Elio." I don't know if Elio will be able to get an extention beyond July? with the political heat. That is why I've voiced my opinion that Elio needs funding by March/April to hit the current targets.

 

[Ty]

Paul has presented the facility as a $400M value to Elio Motors. "Elio Motors has raised a total of $102M through June 30, 2016" This was why he is ONLY looking for $300M more for production. "Recent automotive product launches cost $750M-$1B" He's not claiming that it's costing him significantly less to get the Elio to production than other automakers. That Shrevepot facility is KEY.

I saw an interview where the one politician was saying, "Shreveport needs to forget about Elio." I don't know if Elio will be able to get an extention beyond July? with the political heat. That is why I've voiced my opinion that Elio needs funding by March/April to hit the current targets.

Elio has no agreement or requirement with Shreveport. So it doesn't matter if Shreveport wants to forget about Elio. They don't have to care or like Elio.

From an Elio Press Release:

Elio Motors will rent approximately 1.5 million square feet of the 4.1 million square foot building from Industrial Realty Group, who leases the building from the IDB. IRG will seek a tenant or tenants for the 2.6 million remaining square feet of the building, which may include suppliers for Elio Motors.

 

[NorTracNY]

Elio has no agreement or requirement with Shreveport. So it doesn't matter if Shreveport wants to forget about Elio. They don't have to care or like Elio.

From an Elio Press Release:

Elio Motors will rent approximately 1.5 million square feet of the 4.1 million square foot building from Industrial Realty Group, who leases the building from the IDB. IRG will seek a tenant or tenants for the 2.6 million remaining square feet of the building, which may include suppliers for Elio Motors.

It can be tough to follow when so much politics gets involved. I am not sure how the groups interact and who have say into what. Stuart Lichter being a prime example. He's the Founder & Chariman of IRG and on the Elio Board. I believe that there is a tax break incentive for Elio. I believe it is what comes up in July? I thought it was something that was extended 1 year already. Is Elio currently paying rent to IRG? Have any specifics come out on any agreement? I know that Elio purchased equipment at the facility. It's always tough to say how the politics can come into play. Glover is trying to get the parrish to nix its contract with IRG. I am not sure how/when that might be possible. Obviously the area wants jobs back at that plant. Anyone with more info would be great to hear from.

 

[Ty]

It can be tough to follow when so much politics gets involved. I am not sure how the groups interact and who have say into what. Stuart Lichter being a prime example. He's the Founder & Chariman of IRG and on the Elio Board. I believe that there is a tax break incentive for Elio. I believe it is what comes up in July? I thought it was something that was extended 1 year already. Is Elio currently paying rent to IRG? Have any specifics come out on any agreement? I know that Elio purchased equipment at the facility. It's always tough to say how the politics can come into play. Glover is trying to get the parrish to nix its contract with IRG. I am not sure how/when that might be possible. Obviously the area wants jobs back at that plant. Anyone with more info would be great to hear from.

Elio has been leasing the space with the rent deferred till August 2016, which we just passed. At least, that's what I remember from the SEC filing. I don't know if that timeline was extended or if Elio has had to start paying rent. Either way, they need to get to producing already.

 

[Elio Amazed]

It looks like Stu is keeping the whole thing afloat with cash advances according to the latest SEC filing.

 

[Ty]

It looks like Stu is keeping the whole thing afloat with cash advances according to the latest SEC filing.

I would like to think if it became critical, Paul would release some control of the company in exchange for the funding necessary to get producing.