Jalopnik Claims Elio Has Only $100k In Bank, $123 Million In Debt

[W. WIllie]

Maybe this is the "Lull before the storm"?

 

[Inigo93]

Since that's the only source of information, yes, it's all from EM; but I seriously doubt they would lie about it.

At this point in the game, I have no doubt that they would lie about it. The question is *are* they lying about it....

 

[Rabrandt99]

So what does 65k over 63k mean?

I think it's just a way to buy time. Absolutely nothing will change when it gets to 65k. Private investors would have already jumped in by now.

As Coss mentioned, it's never been elaborated, but I'd bet money it's for one reason and one reason only.

When the 65,000 has been reached, they tabulate that with the amount of people who have 'locked in' in order to create a percentage to showcase brand acceptance.

Because if they can go to the DOE and say out of 65,000 reservations total, 87% of them have signed a binding agreement to buy it, that makes a convincing argument that there is money in the Elio concept and the loan can be repaid.

Of course, if it comes back that only 25% of 65,000 reservations have committed to buy it, it guts Elio's argument.

But, at this point they need to prove that the Elio can be a money maker. Showing a high percentage of people are locked-in to buy it at a nice round number will do so quite nicely, so it's a risk worth taking.

I have suspected this to be the reason from the very beginning and I will eat my words if it turns out that hasn't been Elio's plan all along.

In any event, we'll see... it's getting close to that magic number.

 

[Horn]

As Coss mentioned, it's never been elaborated, but I'd bet money it's for one reason and one reason only.

When the 65,000 has been reached, they tabulate that with the amount of people who have 'locked in' in order to create a percentage to showcase brand acceptance.

Because if they can go to the DOE and say out of 65,000 reservations total, 87% of them have signed a binding agreement to buy it, that makes a convincing argument that there is money in the Elio concept and the loan can be repaid.

Of course, if it comes back that only 25% of 65,000 reservations have committed to buy it, it guts Elio's argument.

But, at this point they need to prove that the Elio can be a money maker. Showing a high percentage of people are locked-in to buy it at a nice round number will do so quite nicely, so it's a risk worth taking.

I have suspected this to be the reason from the very beginning and I will eat my words if it turns out that hasn't been Elio's plan all along.

In any event, we'll see... it's getting close to that magic number.

Again the difference between 63 or 64k and 65k is very minimal. To my knowledge, the DOE hasn't mentioned anything of this.

It seems that EM keeps throwing out something new to keep people believing. They were supposed to build 100 prototypes for companies and that never happened.

Want to make a gentleman's bet? I bet nothing significant happens with funding at the 65k mark.

It all just seems like a sales pitch with no real plan on how to make it.

 

[AriLea]

Again the difference between 63 or 64k and 65k is very minimal. To my knowledge, the DOE hasn't mentioned anything of this.

It seems that EM keeps throwing out something new to keep people believing. They were supposed to build 100 prototypes for companies and that never happened.

Want to make a gentleman's bet? I bet nothing significant happens with funding at the 65k mark.

It all just seems like a sales pitch with no real plan on how to make it.

That's kind of a jaded attitude to the point. Just because you think 63k is as good as 65k doesn't mean they should.

Very much the business world is driven by picky thresholds. So yea, if 65k is their requirement, very much anything less won't do.

They also don't simply "trust" Elio Motors, in fact investors and these programs don't trust anyone. That's why they set absolute thresholds and other makers. You either make the number or not, black and white.

 

[Sailor Dog]

Again the difference between 63 or 64k and 65k is very minimal. To my knowledge, the DOE hasn't mentioned anything of this.

It seems that EM keeps throwing out something new to keep people believing. They were supposed to build 100 prototypes for companies and that never happened.

Want to make a gentleman's bet? I bet nothing significant happens with funding at the 65k mark.

It all just seems like a sales pitch with no real plan on how to make it.

Horn...how can I make that bet with you? The 65k causing something significant to happen that is, with regards to funding... ATVM or otherwise.

As to the 100 preproduction...this is predicated on needed funding.

 

[johnsnownw]

If 65k is a significant milestone for funding, why hasn't Elio stated so? That's the only reason I'm skeptical that it's anything more than a marketing strategy.

I'm not stating this negatively, using an ever decreasing number of available reservations is a common marketing strategy. It has also been used as a goal post, but generally it's announced as a goal post.

 

[Sailor Dog]

If 65k is a significant milestone for funding, why hasn't Elio stated so? That's the only reason I'm skeptical that it's anything more than a marketing strategy.

I'm not stating this negatively, using an ever decreasing number of available reservations is a common marketing strategy. It has also been used as a goal post, but generally it's announced as a goal post.

Not looking back again for when EM stated 65K and locked in requirements, but stated it was.

What's wrong with using this common marketing strategy...repeat what works.

 

[johnsnownw]

Not looking back again for when EM stated 65K and locked in requirements, but stated it was.

What's wrong with using this marketing strategy...repeat what works.

Nothing wrong, as I stated it was common. Just saying that it appears to be a marketing strategy, rather than a threshold required to receive additional non-reservation funding.

 

[Sailor Dog]

Threshold required for ATVM funding it is...