Investor Opportunity: A Message From Paul Elio

[RUCRAYZE]

I disagree. Prayer is relevant in all situations depending on the person and their religious beliefs. People pray all the time about anything and everything. And contrary to popular belief, prayer is not reserved for "last resort".

However, PE may be getting the wake up call needed to start dishing out some equity in order to secure the needed funding.

For sure, we each perceive communion with G*D individually. I've tried to stay from praying for material wants and needs.

 

[RUCRAYZE]

All good points and I to want my E. My concern, is the clock.
i.e. this can't remain an open ended endeavor -

 

[Chris F]

I've been following the Elio saga for the past 6 months through the eyes of this blog. So I was a bit surprised that I got zero response to my post about financing (2/24) except for "welcome to the blog", and " the gas cap belongs on the right". I posted what I thought was an interesting concept as to how EM could get the financing needed to get to production. Here's a repeat of that posting. I'd like to know what's wrong with this idea, and would you participate in this financing opportunity if given the chance.

Here's how EM could crowd fund the Elio. EM should gift every first year reservationist a small amount of EM stock when the future owner pays the full $6800 up front. This money would be fully refundable up to the first day of production. Let's say Em is capitalized at 1,000,000 shares, and up to 6 percent is dedicated to the potential 60,000 1st year reservationists. That's 1 share per autocycle which has zero value today, but may have real value 5 years from now. What does this do for EM? 60,000 reservationists X $6,800 = $408 M in the bank waiting for production to start. Don't you think they might be able borrow substantially (as opposed to giving up equity) against that collateral, and demonstrate viability to DOE at the same time? EM could even make things more interesting by committing all 60,000 shares no matter how many reservationists take part In other words if only 1 person plunks down the $6,800 then when production starts they'll get all 60,000 shares. I think some variation of this approach could get EM over the hump.

I responded by saying that a public distribution of stock violates the Securities Act of 1933, unless the stock was registered. Corporations cannot "gift" stock. Under state corporation laws, that would also be illegal. The costs of registering a public distribution of the stock is upwards of $100K, with another minimum $100K per year in compliance costs.

 

[Chris F]

A. They probably only have 1,000 or 10,000 shares. Doing a million shares for a startup is ridiculous.
B. Giving everyone ownership for simply preordering is not something any company would do. That's like saying everyone that preorders the next Call of Duty game should get ownership in EA just because. Equity ownership is the most prized possession for startups and their most powerful bargaining chip with REAL funding solutions.
C. Allowing 60,000 shareholders on top of the shareholders for the remaining 94% ownership is a legal and accounting nightmare with too much cost compared to benefit. They would have to go public in order to make it cost beneficial but at that time, he couldn't raise what's needed for 49% of the company because the value isn't there yet. Therefor you would have to have a lawyer and accountant to sign individual agreements with all 60,000 people to stay private. At that point, it's not worth it because $6,800 is currently lower than cost plus giving away equity.

I'm sorry but your recommendation is a prime way for a company to go bankrupt fast and to drive those in charge insane by inviting that many micromanagers to the party.

But what do I know, I'm just a simple accountant that deals with companies and all their shareholders everyday...

Besides, its illegal.

 

[Jim H]

Thanks for the compliment as it made my day even though I am far from a saint. If you were to ask my ex-wife she would likely not only disagree with you but also claim I am the devil incarnate.

Ex-wifes all share the same opinions

 

[charchri4]

I don't qualify to invest but I would gladly send him 15 grand if he would send me 2 Elios. Just sayin...

 

[Hotscoots]

Approx #s.......
60 MPG , 8 Gallon fuel tank , 480 miles per week , One fill-up per week , 8 x $3=$24
$24 x 4 = monthly fuel cost .($100) $300 paid to CC per month = $200 to Elio "car loan"
$8000 / $200 = 40 months or 3.3 years to own your Elio outright .

Folks that currently spend equal to or more than $300 per month on fuel (me and you) can reasonably factor this conservative equation as getting a free Elio . After 3.3 years , you own the vehicle and the net math gets even more ducky .

 

[RUCRAYZE]

Approx #s.......
60 MPG , 8 Gallon fuel tank , 480 miles per week , One fill-up per week , 8 x $3=$24
$24 x 4 = monthly fuel cost .($100) $300 paid to CC per month = $200 to Elio "car loan"
$8000 / $200 = 40 months or 3.3 years to own your Elio outright .

Folks that currently spend equal to or more than $300 per month on fuel (me and you) can reasonably factor this conservative equation as getting a free Elio . After 3.3 years , you own the vehicle and the net math gets even more ducky .

Don't think you gotta pay money to get money? interest?? There ain't no "free ride" even in an Elio.

 

[Neal]

All good points and I to want my E. My concern, is the clock.
i.e. this can't remain an open ended endeavor -

I agree wholeheartedly. I am a 12 out of 10 the Elio will happen. But I think that if they don't make the next deadline with hiring employees, then I don't think another extension will be given and the project will be virtually dead.

 

[Past Fanatic]

while the anticipated funds from equipment sales no doubt still is a point of consideration, you'd have to ask the investor question to someone who works inside the company ...

The STATEMENT; " A major investor backed out last minute. ", was made HERE by 'mdfb42'...... just wanted to actually know WHERE he got the information, and how ACCURATE it was. Guess it was just 'HOPE', supposition, or a 'GUESS'...... like most of the rebuttals offered by the 'Faithful'...... without any documentation or basis in FACT. Oh, and in reference to the "anticipated funds" from the Surplus Equipment SALES; 'No Word' from Elio Motors (Good or Bad)....... but the 'number of items' listed on their eBay site..... keeps INCREASING (not Decreasing, if being SOLD off). ie. 7 Mar 2015 = 6,784 items...... 16 Mar 2015 = 6,898 items. And all items are listed as "Or Best Offer"..... so the 'Asking Price' is no real indication of what amount they will end up with.