Investor Opportunity: A Message From Paul Elio

[mag44]

At this stage of the Elio game Paul would be willing to take 15K from anyone in the nursing home or on food stamps.
He is getting to feel the pressure now.

 

[mdfb42]

I was an 'Avid Supporter' of Elio Motors in the past, I traveled many hours to see the P3 and P4, Loved the 'idea' and have been following them since 2009. I have seen them go from a 'customer oriented' company.... to a struggling one that doesn't care about their 'paying supporters' and just needs more CASH, by whatever means available.... including 'deceiving' their potential investors. When a $1,000 supporter asks them questions about their ESCROW account and their 'progress' in setting up an 'Engine Manufacturing Facility' that will be able to produce 500 engines per 8 hour shift (one per minute)..... they BLOCK you, without any notification, or reason; so much for 'transparency'. What CASH they do generate via the 'Mall Tour', seems to be going into more 'marketing'; and NOT into producing a "E" Series Pre-Production prototype.... and a TESTING program.

The desire for CASH, as you state actually proves they are customer oriented. The CASH desire is so they can follow through on their promise to us, the customers, with a working product. If they didn't have a desire for CASH, then they would be considered not customer-oriented as their priorities at that time would obviously not be about completing and producing a vehicle.

The never deceived their potential investors. Off to the looney bin with that comment.

If you have a refundable deposit, then it is in escrow and they have it if they need to give it back. It's required by law. However they are not your personal banker and have not accountability to respond to your meaningless requests about the escrow account or their progress. They have more important things to be working on than respond to that idiotic inquiry since you are protected by law to be refunded if that is the type of reservation you have. I would have blocked you too.

Let me be clear. YOU ARE NOT AN INVESTOR. YOU DO NOT HAVE ANY RIGHT TO KNOW THE INNER WORKINGS OF THE VEHICLE. THEY HAVE ZERO OBLIGATION TO YOU BESIDES REFUNDING YOUR MONEY OR PROVIDING YOU WITH A VEHICLE. This transparency you are seeking if for actual investors with real skin in the game ($1,000 refundable deposit equals ZERO skin in the game and even a $1,000 non-refundable is chump change in the large scheme of things).

Finally, back to your CASH rant about using the raised funds to keep the marketing team moving and that's it. Well, that's all they need to do because the more ground you cover the more you increase your chances in finding qualified investors that will make all the time spent idle (financially) worth it. Yes they want to increase public views and reservations, but the real prize they are after is solid funding. Hence why many companies give out free samples in hopes it crosses paths with a large vendor to solidify their product.

 

[BlioKart]

At this stage of the Elio game Paul would be willing to take 15K from anyone in the nursing home or on food stamps.
He is getting to feel the pressure now.

o_O
Gee all them millionaire food stamp recipients and geriatrics. Now imagine them in one person Billionaire I SAY!

 

[BobG]

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.

 

[Neal]

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.

Not a bad idea. The only problem I see is that most will finance the Elio (myself included) and banks won't give you a loan for something that is not in production. That would make it an unsecured loan. In theory, though, your plan is sound.

 

[RUCRAYZE]

there is no em stock

 

[mdfb42]

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.

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...

 

[mdfb42]

there is no em stock

They are an incorporated entity. They have to have stock in order to exist...

 

[RUCRAYZE]

They are an incorporated entity. They have to have stock in order to exist...

no stock in the market place?

 

[mdfb42]

no stock in the market place?

Define market place. With the new investor deal, that could be considered in the market place.

As far as going online and simply buying stock, no. That's because they are not a publicly traded entity.

However they have to have stock in order to be a corporation. They may even have several different classes of stock (common, preferred, treasury, etc.)