Fat Cats Talk Big But.......

[Truett Collins]

Why would Elio give up control to one of these investors before the Gov't loan process has run it's course. We are all anxious to have our cars, but really if you were in Paul' shoes surely you would wait out the loan process before you gave away everything you have worked for all this time. It was his vision. It was his effort. I has been his hard work. He can always get the money if he gives up control. But if I were he, I wouldn't do it until the loan process has been exhausted. Let's give the man a break. He is doing the best he can to make this happen, and as quickly as possible. The amount of work and planning and negotiating that is required to create a car company from scratch is staggering. Does anyone here think they could do better. You and I put down a $1,000, he has invested years of his life.
The man is only human, you people seem to act like he works for us. He doesn't have a big staff to sit around and answer our questions. The car will be built as soon as they can get it together. Every part of the production line has to be drawn up on flow charts. Each step of the building process has to be reduced to a job description, so it can be taught to the future assemble line staff. I have at another time mentioned that the Human Resources, requirements to hire soooo many people. If creating a car company from step one were easy, we all could have done it.

I will now put away my soap box and await my car.

If you will take note, the majority of the hurry up/right now comments are coming from the me/now generations. They have grown up with the immediate fast food restaurants, the microwave meals, the immediate order over the internet, the text instead of mailing a letter, etc..... and never learned what it takes to get from point a to point b.

 

[Jay3wheel]

If you will take note, the majority of the hurry up/right now comments are coming from the me/now generations. They have grown up with the immediate fast food restaurants, the microwave meals, the immediate order over the internet, the text instead of mailing a letter, etc..... and never learned what it takes to get from point a to point b.

It is not just newer people, but most of us have never managed a factory, or even a small business. The amount of i's to dot and t's to cross in this undertaking is simply beyond the scope of personal history to most of us. This isn't putting a man on the moon, but it isn't like opening a pet store or a burger joint.

 

[Ekh]

Why would Elio give up control to one of these investors before the Gov't loan process has run it's course. We are all anxious to have our cars, but really if you were in Paul' shoes surely you would wait out the loan process before you gave away everything you have worked for all this time. It was his vision. It was his effort. I has been his hard work. He can always get the money if he gives up control. But if I were he, I wouldn't do it until the loan process has been exhausted. Let's give the man a break. He is doing the best he can to make this happen, and as quickly as possible. The amount of work and planning and negotiating that is required to create a car company from scratch is staggering. Does anyone here think they could do better. You and I put down a $1,000, he has invested years of his life.
The man is only human, you people seem to act like he works for us. He doesn't have a big staff to sit around and answer our questions. The car will be built as soon as they can get it together. Every part of the production line has to be drawn up on flow charts. Each step of the building process has to be reduced to a job description, so it can be taught to the future assemble line staff. I have at another time mentioned that the Human Resources, requirements to hire soooo many people. If creating a car company from step one were easy, we all could have done it.

I will now put away my soap box and await my car.

I like your argument -- but I LOVE your grammar!

 

[Jay3wheel]

Is that a joke?

 

[Ekh]

Certainly not. You correctly used the conditional mood, with the correct pronoun: "if I were he."

 

[tonyspumoni]

Locking in Investors doesn't mean giving up control. I would say most venture capital is from silent investors having the trust in the product, the company, and the management behind it.........or they wouldn't have interest in providing capital in the first place. What the heck do venutre capitalists know about vehicle design, engineering, and whats needed to set up manufacturing, marketing, sales, and servicing plans.

Rickb,

Capital investment converts perceived risk into weighted rate of return. Anyone who capitalizes Elio without getting a commensurate equity stake wound be risking more and would demand a high rate of return. If Elio said 'no stake but we'll give you 4%', those investors would look for a better deal elsewhere, starving Elio for cash. Companies find ways of writing down debt all the time, but there are pretty fixed rules of ownership. Elio has only tried to tap one unsecured credit source that I know of - the Depart of Energy's Advanced Vehicle Technology loan. The rest are likely to be VCs and maybe angels who will absolutely want an equity stake in return. Now whether they take a controlling stake or are willing to be satisfied with a minority stake is another matter.

And I know VC guys. They must be able to value an asset as an investment opportunity or they will invest in stupid plays and get fired. Now they may not be engineers, but they will look over the numbers and be very familiar with the business models and all aspects of execution. They are anything but silent - quite the opposite, their money is short supply and is in great deman - and they are ruthless and cold. In my space - biotech/pharma - most VC guys are ex science guys, BD, and business guys. Very smart people.

 

[Ekh]

Rickb,

And I know VC guys. They must be able to value an asset as an investment opportunity or they will invest in stupid plays and get fired. Now they may not be engineers, but they will look over the numbers and be very familiar with the business models and all aspects of execution. They are anything but silent - quite the opposite, their money is short supply and is in great deman - and they are ruthless and cold. In my space - biotech/pharma - most VC guys are ex science guys, BD, and business guys. Very smart people.

Thank you. The ignorant speak until the wiser person comes forward.

 

[Oldfarmer]

I agree, but you generalize 'the rich'..............there are rich people like Gates and Buffet that give back thru plilanthropic foundations, politically work to preserve the middle class, and promote social programs to assist the working poor. I read Buffet will donate 99% of his wealth to the Gates Foundation on both his and his wife's death and not just continue his family fortune. Then there are the greedy rich that would rather take more from the middle class while preserving their peronal wealth....while building monuments to themselves. Paul Elio may be rich or most certainly will be rich........but is working to maintain and build his wealth by providing USA jobs while building affordable transportation for and supporting the average guy.........admirably rich. A win win rich. Go Elio!

"The Rich" is a very broad term indeed. I think we can agree that the 1%ers give very generously to their chosen charities. I think the study was primarily talking about a group that makes something like $500k on up to several million. I don't know how many there are but I reckon we could call them the
20%ers.
I'm retired and on a fixed income but I still donate $10 bucks here and 25 there to local groups. I don't do it for the tax deduction either. I give what I can afford.

 

[HHH]

You know Buffett , Gates and others you see pretending to want to help the people well I ask them why not invest in Elio. Look at the OIL it will save the country and how it will help the little working man/woman and their families.
Even those that make very little it would help them maybe get a job in having to drive to work.
Where are the FAT CATS? Home counting their money.
Elio will be good for everyone, not just the few.

As others have stated, Buffett intends to give 99% of his fortune to the Gates Foundation. In the meantime, his company, Berkshire Hathaway, has published criteria for acquisitions, but Elio would not qualify as a startup. To quote them, "A line from a country song expresses our feeling about new ventures, turnarounds, or auction-like sales: 'When the phone don't ring, you'll know it's me.'"

That being said, General Electric did go, hat in hand, to him during the economic downturn, and received $4 billion cash secured in part by preferred stock. As I recall, both parties were pleased with the deal.

 

[Rickb]

"The Rich" is a very broad term indeed. I think we can agree that the 1%ers give very generously to their chosen charities. I think the study was primarily talking about a group that makes something like $500k on up to several million. I don't know how many there are but I reckon we could call them the
20%ers.
I'm retired and on a fixed income but I still donate $10 bucks here and 25 there to local groups. I don't do it for the tax deduction either. I give what I can afford.

Yep, me too....................retired, fixed income, and some charitable contribution. I'd rather be a ruthless, cold, and smart VC.