Excited

[Samalross]

EA, RS, and 4m,

I agree with everything you said about the anti Elio sentiment, but I still think there are enough synapses in a few brains even there that want Elio to fail 100 percent “on its own.” There will be a lot of blame, finger pointing, and litigation surrounding why Elio imploded and no one in LA is going to want to defend the $500,000 fine that Paul might say finally put EM out of business: Elio Motors will never admit their own ‘missteps.’ LA is even smart enough to know they will never see that money, anyhow: To your point, why would LA want to give Elio yet another excuse?

I agree with you 100 percent. I wonder if Elio Motors is waiting for the court case as an excuse to shut down. Will be an interesting two months.

 

[Elio Amazed]

EA, RS, and 4m,

I agree with everything you said about the anti Elio sentiment, but I still think there are enough synapses in a few brains even there that want Elio to fail 100 percent “on its own.” There will be a lot of blame, finger pointing, and litigation surrounding why Elio imploded and no one in LA is going to want to defend the $500,000 fine that Paul might say finally put EM out of business: Elio Motors will never admit their own ‘missteps.’ LA is even smart enough to know they will never see that money, anyhow: To your point, why would LA want to give Elio yet another external reason or excuse?

Again, you're maintaining the same opinion.
And that's fine. We agree to disagree.

My projection? When and if it's over, no-one will care about what the former EM has to say or who they point at.

I honestly believe that almost everyone in Shreveport will feel a sense of relief.

 

[RSchneider]

On a side note, seems that Louisiana has been down the road of vehicle startups before. So, they should realize that they take time and sometimes don't work out. This company got a lease on an old headlight plant in Monroe, LA along with $67M in economic incentives and $133M in tax incentives from the state. Plus the company had $100M from VC's. It looks like the whole thing hinged on an ATVM loan and a DOE loan totaling $321M.

Coincidentally, Hari Ilyer was the VP of Engineering for V-Vehicle. He's also the VP of ESG Engineering, former COO of Elio Motors, currently on the Elio Motors BOD and CEO of a car sharing company (which Paul Elio is an advisor for).

At this point Louisiana just needs to sit back and see what happens instead of creating a ruckus. It does no good at all.
https://www.xconomy.com/san-diego/2...k-after-government-rejects-321m-loan-request/

https://www.xconomy.com/san-diego/2...arters-of-americas-latest-green-auto-startup/

 

[Ty]

Elio Motors has no contract with Shreveport nor are they making any payments to Shreveport. As far as the people of Shreveport (and the money people) know is that the facility is rented out and the rent payments are being made. They can be upset about not having a bunch of jobs but Elio doesn't owe anyone except for Stu.

 

[RSchneider]

Elio Motors has no contract with Shreveport nor are they making any payments to Shreveport. As far as the people of Shreveport (and the money people) know is that the facility is rented out and the rent payments are being made. They can be upset about not having a bunch of jobs but Elio doesn't owe anyone except for Stu.

That's true. Shreveport actually has nothing to do with Elio or Stu. It's the Caddo Parish and the plant is on the edge of Shreveport City limits but not in it. The Caddo Parish Industrial board bought the plant for $7.5M then the Industrial Development Board took charge. It was leased to Shreveport Business park along with Industrial Realty Group who in turn leased 40% to Elio Motors. At this point everything is up to date and legal. If anyone has any issue its the SBP and IRG, not the Caddo Parish as they are getting their lease payments on time.

Stu is the hero here because he's done a great job to keep Elio afloat because he could bury Elio with calling in payments to Racer Trust (the worker fine), CH Capital (loan on equipment in the plant) and IRG (lease payments). When Elio gets the $100M in the IPO, the three aforementioned groups will get paid out of that pot first. Then payments for fines, leases and the loan go on as usual out of that pot all while Elio finishes the car, outfits the plant and hires workers. When Elio gets to production and 1500 employed, the fines stop but the other two go on.

 

[4matic]

That's true. Shreveport actually has nothing to do with Elio or Stu. It's the Caddo Parish and the plant is on the edge of Shreveport City limits but not in it. The Caddo Parish Industrial board bought the plant for $7.5M then the Industrial Development Board took charge. It was leased to Shreveport Business park along with Industrial Realty Group who in turn leased 40% to Elio Motors. At this point everything is up to date and legal. If anyone has any issue its the SBP and IRG, not the Caddo Parish as they are getting their lease payments on time.

Stu is the hero here because he's done a great job to keep Elio afloat because he could bury Elio with calling in payments to Racer Trust (the worker fine), CH Capital (loan on equipment in the plant) and IRG (lease payments). When Elio gets the $100M in the IPO, the three aforementioned groups will get paid out of that pot first. Then payments for fines, leases and the loan go on as usual out of that pot all while Elio finishes the car, outfits the plant and hires workers. When Elio gets to production and 1500 employed, the fines stop but the other two go on.

The financial arrangements with regards to revitalizing the old GM plant are actually rather convoluted...

At the end of the day...the only aspect of the Elio story that most citizens in the Shreveport area remember is...Paul Elio promised the creation of 1,500 jobs more than four year ago...

 

[RSchneider]

I looked up and found the video when this was announced at the beginning of 2013. Partial production to begin in June 2014, full production with 1500 people by the end of 2015. Then by 2020, exports to China, South America and Europe. No mention of a targeted or proposed date. So I’d guess the Shreveport metro area assumed that it was written in stone because they never kept up on the updates. If the did, I’d think they would be more excited today.

 

[Maurtis]

If Elio Motors is so near death, why are they bothering to send out T-shirts and bumper stickers?

I hope the fact that EM is sending these out (when people have forgotten about them) means something positive.

I hope: out of desperation, EM has accepted some drastic offer it previously rejected, and is waiting until after the court hearing to finalize and announce it.

My deposits cost money. Hope is free.

I have been wondering about this too. Surely they were not too broke before to even finish sending out t-shirt and bumper sticker orders. It occurred to me that the only thing they were contractually obligated to deliver with all-in reservations was the shirt and sticker. I wonder if they are fulfilling their outstanding contractual obligations so if Elio Motors folds then the reservation holders have nothing to sue over?

I really hope that is not the case, but would explain why they suddenly started sending out shirts and stickers again with no other news announced or even hinted at.

 

[RSchneider]

Another theory is that they sold a couple of controllers, sensors and motors off of the Shreveport assembly line for $1000 on ebay and that is funding the $500 they spent on a boatload of single color silk screened T's and 4 color bumper stickers. The other $500 is to pay for shipping to reservation holders.

The Elio Wear website is now down to either black or tan hats. They sold out of jackets, polos, hoodies, fleece and whatever else they used to have but have not restocked.

 

[pistonboy]

I have been wondering about this too. Surely they were not too broke before to even finish sending out t-shirt and bumper sticker orders. It occurred to me that the only thing they were contractually obligated to deliver with all-in reservations was the shirt and sticker. I wonder if they are fulfilling their outstanding contractual obligations so if Elio Motors folds then the reservation holders have nothing to sue over?

I really hope that is not the case, but would explain why they suddenly started sending out shirts and stickers again with no other news announced or even hinted at.

Your theory does make sense.