Jalopnik Article On Elio May 1,17

[3wheelin]

So... I want my Elio as much as anyone else here does.
I don't have an opinion on the article one way or another.
Jalopnik needed more clicks so they published the article.

I am curious about how everything has changed... again.
How it went from 22 E-Series left to go plus 100 fleet vehicles...
To a completely new plan of 158 S-Series pre-production vehicles.

Someone please wake me from this nightmare.

"Here there be monsters..."

Wow, this is something new to me too!

 

[Ty]

They spent $141,000,000 and produced nothing in nine years, and need $376,000,000 more to get started?

Game over.

It was a fun ride.

Bye guys, I'm out.

They said, quite clearly in the SEC report, that that they need $33 Million to get started.

 

[johnsnownw]

They said, quite clearly in the SEC report, that that they need $33 Million to get started.

Isn't that to get started on all the pre-production models? That's not to get started on production.

 

[Ty]

Isn't that to get started on all the pre-production models? That's not to get started on production.

Correct. The difference now is that they are saying $33 Million will start the process towards production at Shreveport. We'll start seeing movement there soon.

 

[Elio Amazed]

Correct. The difference now is that they are saying $33 Million will start the process towards production at Shreveport. We'll start seeing movement there soon.

If you look at it that way, they "got started" 9 years and $140M ago.

 

[Ty]

If you look at it that way, they "got started" 9 years and $140M ago.

I was quoting from the SEC report where they said they needed the $33 Million to start the production process at the Shreveport Plant.

 

[Lil4X]

I wouldn't put a lot of faith in Jalopnik's journalistic integrity. Last fall their parent company, Gawker Media filed for Chapter 11 bankruptcy after losing a huge $31M lawsuit to "Hulk Hogan" in a steamy sex scandal that became an extortion case. Now they've recently been scooped up by Univision, but their editorial policy seems to have remained immature. They have a long reputation as more of a supermarket rag-mag than a knowledgeable source.

 

[Elio Amazed]

I was quoting from the SEC report where they said they needed the $33 Million to start the production process at the Shreveport Plant.

Let me also quote from that document...
"At this point, we need to build and test additional prototypes and kick-off long lead production equipment and hard tooling. With
most of the development risks addressed, we need to raise additional capital estimated at $376 million to fund production activities.
We refined our production plans with suppliers to start commercial production on a 76-week schedule, to commence with funding of at least $33 million."

To me that's pretty clear that the first STEP of a 76-week schedule is obtaining funds of $33 million.
In other words, all they're saying is without an additional $33M, they can't even START to tool up, let alone built 158 additional S-vehicles.
And that the big switch won't be thrown on the production line until they have the entire $376 million invested into that schedule.

$376M minus $33M = $343M. It sounds to me that if the $343M doesn't follow the $33M, what they'll have is a wasted $33M...
And nothing but a small dent made in the tooling process. You made it sound like $33 million is going to tool the plant and get them p-ready.
Based on their track record, IMO, as soon as they get their hands on more funding, EM will start hemorrhaging money again.
Right or wrong, if I see it that way, you can betcha that deep pocket investors are going to see it that way too.

 

[Ty]

Let me also quote from that document...
"At this point, we need to build and test additional prototypes and kick-off long lead production equipment and hard tooling. With
most of the development risks addressed, we need to raise additional capital estimated at $376 million to fund production activities.
We refined our production plans with suppliers to start commercial production on a 76-week schedule, to commence with funding of at least $33 million."

To me that's pretty clear that the first STEP of a 76-week schedule is obtaining funds of $33 million.
In other words, all they're saying is without an additional $33M, they can't even START to tool up, let alone built 158 additional S-vehicles.
And that the big switch won't be thrown on the production line until they have the entire $376 million invested into that schedule.

$376M minus $33M = $343M. It sounds to me that if the $343M doesn't follow the $33M, what they'll have is a wasted $33M...
And nothing but a small dent made in the tooling process. You made it sound like $33 million is going to tool the plant and get them p-ready.
Based on their track record, IMO, as soon as they get their hands on more funding, EM will start hemorrhaging money again.
Right or wrong, if I see it that way, you can betcha that deep pocket investors are going to see it that way too.

No, no, no. I didn't intend to indicate that I thought $33M would get the plant production-ready. I just meant that the 76 week timeline doesn't start until they get that first $33M. I agree with what you posted.

 

[CrimsonEclipse]

I wouldn't put a lot of faith in Jalopnik's journalistic integrity. Last fall their parent company, Gawker Media filed for Chapter 11 bankruptcy after losing a huge $31M lawsuit to "Hulk Hogan" in a steamy sex scandal that became an extortion case. Now they've recently been scooped up by Univision, but their editorial policy seems to have remained immature. They have a long reputation as more of a supermarket rag-mag than a knowledgeable source.

Summed up perfectly.

They've always been anti- Elio.