Investor Opportunity: A Message From Paul Elio

[pistonboy]

Perhaps EM should make the investors money nonrefundable like our "all in" money.

EM doesn't want these people pulling out like their previous investors.

 

[dancescientist]

Perhaps EM should make the investors money nonrefundable like our "all in" money.

EM doesn't want these people pulling out like their previous investors.

The investment is non-refundable if no one way will pay you a buck for the shares.

By the way, I wonder what is the valuation of the company based on the price relative to equity.

 

[satx]

...

 

[mdfb42]

The investment is non-refundable if no one way will pay you a buck for the shares.

By the way, I wonder what is the valuation of the company based on the price relative to equity.

That's the problem right now. The company value is not there, the only sales pitch they have is the potential upside. And with that being your best pitch, the offers you can expect are loans with 20% interest rates and not much more.

There's a reason auto company startups are essentially non existent for a non-billionaire because it so hard to raise capital based on future potential versus current value. All I can do is continue to wish him luck.

 

[Kuda]

[QUOTE="mdfb42, post: 94775, member: 1247"Snipped: There's a reason auto company startups are essentially non existent for a non-billionaire because it so hard to raise capital based on future potential versus current value. All I can do is continue to wish him luck.[/QUOTE]

If Buffet, Gates, Branson, et al aren't interested,
it really does come down to the ATVM & meeting their guidelines.......

 

[NSTG8R]

[QUOTE="mdfb42, post: 94775, member: 1247"Snipped: There's a reason auto company startups are essentially non existent for a non-billionaire because it so hard to raise capital based on future potential versus current value. All I can do is continue to wish him luck.

If Buffet, Gates, Branson, et al aren't interested,
it really does come down to the ATVM & meeting their guidelines.......

[/QUOTE]




A little trivia: The number of millionaires in the US is approaching 10 million. Sounds like there's a ton of "potential accredited investors" to source funds from.

 

[Ekh]

[QUOTE="mdfb42, post: 94775, member: 1247"Snipped: There's a reason auto company startups are essentially non existent for a non-billionaire because it so hard to raise capital based on future potential versus current value. All I can do is continue to wish him luck.

If Buffet, Gates, Branson, et al aren't interested,
it really does come down to the ATVM & meeting their guidelines.......

[/QUOTE]
My understanding from talking with Jerome last summer was that the issue wasn't attracting the big bucks, it was control over the company. That's still part of the problem. Paul is reluctant to give up large amounts of stock, and the control that goes with it, yet that's really the only security he has -- the ability to bring this vehicle, as it is intended to be, to market in the very experimental way he's doing it. For instance, he wants only the bare minimum of foreign content in the machine; a heavy investor will insist on getting lower cost materials from overseas if it makes the vehicle a tad cheaper to build.

My guess, and I don't like to say this, is that Paul is feeling a lot of pressure, watching operating capital diminish, slow sales of the plant equipment, a nearly-frozen prototype program, no word from DOE ATVM loan guarantee, and cheap gas prices lowering the perceived value of the product (note the word perceived; the real value proposition for an Elio is amazingly strong, even at $2.00 gas). He has to feel the walls closing in on him. Hence the new investment program.

Kuda, you have said it just right. The future value is there, but the risk is enormous. It takes very deep pockets to take that on, and apparently no one is willing to do that without taking a measure of control away from Paul. Ergo, stalemate. I have only shreds of evidence, but the company's behavior over the past 4 months certainly suggests I am right. Not good times for Elio -- nor for us.

I want my Elio. I don't know if I'll ever get it. But if just one of the big things happens -- angel investor, ATVM Loan Guarantee, offloading the surplus equipment from Shreveport -- then we're back on the rails. Perhaps prayer will help.

 

[RUCRAYZE]

[
If we're arriving that "perhaps prayer will help", then indeed this project is dead. Praying for financial salvation is not praying.

 

[mdfb42]

[
If we're arriving that "perhaps prayer will help", then indeed this project is dead. Praying for financial salvation is not praying.

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.

 

[LillyMayPatterson #1685 & #5648]

I am satisfied with EM progress. We were told they were going to go after funds in phases. Much like the developments from concept to marketing to development and improvements, getting a manufacturing plant and it's set up to hiring. Each celebrated step in development moved EM into the next set and the need to finance it. Hitting over 40 thousand reservations was a great goal or a celebrated step. They have a base of suppliers set up and already meeting regularly. The design guys are working with the engine guys in the final model design. The factory is being cleared out and set up by some pretty experienced good old boys. All this, is a set up for the next developing steps which are building and testing the final engine, starting with the 25 or so test engines. EM is going after the financing for this phase. They never needed the whole 300 million dollars yet. They only needed to finance the phase they were working on. Sure the government loan could fill the void, but EM isn't depending on it. So they are working on this credited investor route. (By the book with expert help !) And selling that extra equipment with the aid of some other pretty special experts. AND you and I are helping EM by showing support in the reservation sales, which is only another area being worked with yet another group of really great comrades. Yeah, I wanted my Elio under my butt yesterday but watching it coming down the road to me is pretty cool. This is a great experience and I am so excited. The trolls are sad.