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

[JEBar]

reminder : civil discussions of positives and negatives are welcome on this forum .... if/when it degenerates into an argument, it will be closed .... second reminder : stating opinions is one thing but presenting opinions as facts with no valid supporting data isn't permitted.... lastly : charges of misconduct based solely on opinion have no place in this community

 

[johnsnownw]

Threshold required for ATVM funding it is...

I do think that's a possibility, but it's speculative. Elio stated that the DOE was requiring lock-ins, but they never stated that 65k was the threshold (as I remember it).

 

[WilliamH]

In re-reading the entire story, I have to wonder if "the weekend editor" has any understanding of finance, debt in particular.
One of her quotes comes from a person (the mayor) who shows absolutely no understanding of the agreements between RACER trust, IDG, and IRG, or any of the history of these agreements.
Her figures on the number of reservation holders is off by over 10 thousand.
The amount the reservation holders have to put up is wrong on the low and high ends.
And, I wonder how much she owes compared to what she has in savings.
I think Jalopnik should do better research.

 

[Elio Amazed]

I think Jalopnik should do better research.

That's a given.

 

[Horn]

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.

This would be like betting on the Browns when they get a different QB. Something always happens. Lol.

This bet means that one of us has to make a post saying. "X was right about the funding. I was wrong. I will take him more seriously even when I disagree. "

MODS - this is a civil gentleman's bet.

Also, the bet has to mean that either the ATVM loan is approved or a dark horse comes in with a boat load of money due to the 65k.
I'm not talking about an extension on the application or someone giving them 1million. I'm talking game changing.

 

[AriLea]

Ahhmm. does Jump-the-Shark come into play here? :-)

 

[wizard of ahs]

Threshold required for ATVM funding it is...

Actually it's not....
It's a self imposed number that EM put on themselves.... of course we will never really know what goes on between EM and the DOE !!

 

[Horn]

Actually it's not....
It's a self imposed number that EM put on themselves.... of course we will never really know what goes on between EM and the DOE !!

Yeah, I'd like to see something published from the DOE that mentions 65,000.

 

[Officespaced]

This is a repost from another thread. Just in case you missed it.


Elio is not closing the doors.


Elio Motors is not going out of business any time soon. Aside from personal assurances I have received, here are objective reasons not to believe the rumor. And it is a rumor.


1. They are in the Detroit auto show.

2. No officer has sold any stock, including Paul Elio. Stock sales by officers must be reported, and there have been none.

3. This whole thing is based on the SEC filings, written by lawyers to cover all possible contingencies. The filings do say (and I’m paraphrasing) “if any of these [funding related] things should fail to occur, we might have to constrain our operations.” At no time has Paul Elio said he was closing the doors, or even that that was a risk. And what the SEC filings do not say, and IMO should say, is HOW LIKELY is it that the company won’t get its funding.

Jalopnik and his evil cousins have taken the probability to be very high, and are trumpeting that around the nation. But the SEC filing does not say anything of the sort. This is malicious mischief, not reporting, by a small group of Elio-haters. We should not be sucked in by this.

4. We have not heard of any suppliers cutting their ties with Elio.

5. They have not sold any prototypes. That is a lie.

6. Paul Elio is one of the most stubborn men on the planet. He is also not underhanded or sneaky.

7. I have been utterly unable to find any “interview” or “meeting” or other event where Paul Elio said anything about shutting down. Not one trace of it.


So – might Elio eventually fail? Yes, of course. Any company can fail. Is closing down the operation on any visible horizon? No. Is it immediate? Absolutely not.


This is a challenging period for Elio. They are so close to getting it done, but the hill is steepest just before the summit. That’s where they are, and they are not quitters. They are not frauds. They are incredibly hard working and very honest people who are deeply hurt by allegations of fraud and dishonesty.


So, let’s just stop this. Stop it now. And when you find people who have heard the attacks, tell them what I’ve just said in this post.[/QUOTE

It can just as easily go bye-bye without immediate funding. They need $185 million to get started and don't have it without ATVM loan and/or Angel Investor(s). Paul and other officers make $250K/year to beat the drum with or without funding. Suppliers have no coin in the gamble. Personally, it makes sense to make less than a dozen appearances/year for $250K/year.

 

[Officespaced]

Technically, mpg testing on a fully-equipped, production-ready vehicle is not even required to qualify for the ATVM loan. Under its ATVM guidance, DOE says,

"Qualification [10 CFR 611.101(c)]: A detailed explanation of how the proposed project qualifies under applicable law to receive a loan under 10 CFR 611, including vehicle simulations using industry standard software such as DOE’s Autonomie (previously PSAT) or similar model to show projected fuel economy." (Emphasis added.)

Quoting are we? Hmmm, let's get down to the basics then:

"In order to be financially eligible for an ATVM loan, an applicant must be financially viable without the receipt of additional federal funding for the proposed project."

https://energy.gov/lpo/services/atvm-loan-program

Fail!