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Discussion in 'General Elio Discussion' started by Johnny Acree, Apr 26, 2019.
Title says it. They can't keep going like this,,, can they?
I’d say they go on as long as Stu (Pat? and others) want it to.
It’s not just Paul in this thing....
At least two guys have deep pockets. How long they go - who knows?
I’m hoping for good news this summer. Think positive!
From looking at their SEC filings, they have 10 years of reserve to make it happen. So, if 2029 there's no an Elio in your garage, I'd give up. As of now, the business model allows them to go for a long time.
The business model doesn't take into account the fines that Louisiana is charging Elio for selling without a franchise license. Even if Elio starts production today, they will still have that legal hurdle. The only three ways out are 1. refuse to sell to states with franchise laws, 2. sell through franchise dealers, 3. get the laws changed.
They just set up a payment structure and pay the fine off over 5 years. That fine is no big deal. The $7.5M fine is and that's what nobody talks about. Racer Trust is helping Elio to succeed buy being super nice and delaying the payment. They can keep doing that for a long time then start collecting after Elio starts building the cars and get's past the 65k money losing reservations they have to serve. Then there's the lease payments on a plant that's not being used. The equipment payments on equipment they have never used. Once they get into production they can start paying them off. The dealer/mfg fine is not on the radar at all when it comes to what Elio needs to do right now. They have much bigger catfish to fry.
Elio's plan has been to price the vehicles with $1,000 of profit in each one. The could still lose money on the first 65k but if they do, it won't be much once profit from accessories is figured in. Elio already owns the equipment in the plant. Rent on the place will add up though...
I forgot, Elio paid off that $23M loan on December 31, 2018.
Good to see Elio paid off that $3.9M (I wonder where the money came from?). So since that's taken care of, then I stand corrected. Only the lease and the $7.5M + $545K fines.
I have never seen anything of recent on the $1K per car they will make in profit. They never list it in the SEC filing, so I'm interested in that because that's a game changer.
There's absolutely no evidence that Elio Motors paid anything. That's the significance of the next annual report, whose contents should spell out all financial details for the period ending December 31, 2018.
Saying that $23 million was due doesn't imply at all that it was paid. What stops Elio Motors from missing that arbitrary deadline? Nothing.
I bet they paid absolutely nothing and the deadline was formally extended to some arbitrary date in 2019, such as June 30, Sept 1, or Dec 31. More accounting magic to keep Elio Motors from filing for bankruptcy for another 6-12 months.
Best part is, Elio will be releasing the SEC filing tomorrow. So we can see what's been going on and that will be only up to the end of 2018. So we get to see a glimpse into what has been going on. I like to see what Elio Motors posts because he gets past my personal opinions that litter my posts. I have a tendency of being too critical.
Any update to the SEC filing?