January 15, 2015 Delay And Delay Repercussions Discussion - All Others Will Be Combined!

[JEBar]

I don't know what they are taking but I know Jerome and Pam sold their house to travel with the Elio road show.

great example .... I openly admit that conversations of having to raise $240 million are totally out of my comprehension .... for me to have a chance of figuring things out, I have to look at much smaller bits of information .... Jerome is the VP of EM, second only to Paul .... he knows what's behind the curtain and his being willing sell his home so as to work toward getting EM into production speaks volumes to me .... the day I see him bail is the day I'll figure things are about to go down hill in a hurry

 

[Ty]

great example .... I openly admit that conversations of having to raise $240 million are totally out of my comprehension .... for me to have a chance of figuring things out, I have to look at much smaller bits of information .... Jerome is the VP of EM, second only to Paul .... he knows what's behind the curtain and his being willing sell his home so as to work toward getting EM into production speaks volumes to me .... the day I see him bail is the day I'll figure things are about to go down hill in a hurry

Jerome, Pam, and their Son is on the tour, right? They have a lot riding on Elio's success.

Play the naysayer's game... How much does 40,000 reservations earn each if they split it and ran? Well, the "want in" people are held away from Elio's grasp. 30,000 at the $1,000 level means $30M... minus tour costs, prototype costs, engine development costs, etc... divided by... how many of them would be "in on it"? 4? Count Stu, 5?... $20M /5 is $4M each... IF the costs so far were under $10M. I don't see it. They'll see this through. We may have more delays than we like. The vehicle may end up costing more than we like but it'll get done.

 

[CrimsonEclipse]

At this point, it's about money. 230-240 million Dollars worth.
Frankly, $240 million is not a lot in the grand scheme of business. Many companies and investment groups routine break 1 billion dollars on long term investments.
The idea is solid, a simple and reliable car, no dealerships. It's generally agreed that the Elio Car is a good idea.

From an investment point of view it may not be as attractive as they want/need for their Return On Investment standards.

This is a time for a company like Google to swoop in and take a risk. (do we know anyone at Google?)

We are now waiting on the government loans. When those are approved/rejected, that's when the investors will act by jumping on the band wagon or fleeing.

As for the surplus equipment, it's hit or miss. It has no worth unless someone buys it. If I see that you're in financial trouble (real or perceived), I'm going to offer the lowest price possible. Even if it ALL sells, at the requested price, it's still insufficient funds for the start of production.

To the point:
EM needs the government loans or a White Knight investor like Google or Elon Musk or it's over.

We invested in an idea that steps on a LOT of toes. We should expect it to be a long and dangerous road.

 

[Gas-Powered Awesome]

I can't imagine another production auto manufacturer risking using used equipment.

Capital equipment is frequently bought and sold in manufacturing. There is little risk. These aren't disposable appliances like your iphoney, this equipment lasts for decades, sometimes generations. Big equipment is often serviced and maintained by the OEM under contract, so used/new makes little difference except for big savings in the purchase price.

watching to see how that gazillion pound two story piece sitting in sand- fits on a flatbed !!

Um, same way it fit when they brought it to the plant?

 

[Cache Man]

I agree with CrimsonEclipse about toes. If the big USA auto manufacturers need a piece of equipment and it isn't at a "stolen" price, I wouldn't think they would buy it from Elio. To make my point, I don't know what the mood is of the big three manufacturers in regards to Elio and if they think Elio is a "fly". If the big three automakers feel Elio is a threat to their market shares then they must know that buying the equipment will help Elio. I hope this isn't the case and I have seen cooperation between the auto manufacturers. Lets hope they will cooperate here or another industry in the USA needs the equipment fast.

Expensive equipment doesn't sell fast in any case. The sales are more likely going to be over seas... As the USA looses or moves it's manufacturing.

 

[JP]

Some of you all must be real fun at parties

 

[Cache Man]

Some of you all must be real fun at parties

Waaahhhooooo!!

 

[JP]

Waaahhhooooo!!

This is more like some of the people on this forum lately

 

[Rickb]

I'm not sure I want the government involved with the funding, but whatever it takes to get this company producing an awesome little car! That said I wonder what Paul and Board of Directors are taking off the top for salaries and per diem? Looks like I'll be waiting till Fall of 2016 (only $100 all in, was going to upgrade to $500, but will pass for now!) for my delivery, but realistically for me it will be 1st quarter 2017! I do hope I'm wrong, but feel they won't start production until 3rd quarter 2016, as a 2017 model.

Don't want the government involved? It's a loan program to encourage alternative or high mpg vehicles. A loan payed back with interest. Part of an investment portfolio our government actually profits from a win win. Do you think it's a giveawayprogram?

 

[Gas-Powered Awesome]

Do you think it's a giveaway program?

For the $192,000,000 of taxpayer money given to Fisker automotive it was. I don't think the interest earned on the paid-off $465 million loan to Tesla is enough to cover that loss. (We won't talk about the $650,000,000 in our money lost in other unrecovered handouts to Solyndra and others.)

I don't like the .gov picking winners and losers. I would prefer Elio succeed without government interference, but reality is the m/billionaires running the government have so distorted the markets it's hard to get honest investment and financing without it.