Less Than $7,600, No Sooner Than 4th Qtr 2016

[Devilstower]

From today's Elio email...

I'm assuming this is already covering in one of the mega-threads (like the 222 page and counting crowdfunding thread), but for those who don't want to wade the sea...

There are two key pieces of information that we’d like to point out. One, the price listed in the Preliminary Offering Circular is “less than $7,600.00.” Second, we state that we do not expect to start delivering to customers until the fourth quarter of 2016 at the earliest.

Regarding the $7,600.00 statement, I have stated on previous occasions, the vehicle cost would be close to $7,300.00 if we went to market today. Our collective goal has always been and will remain focused on engineering the Elio to the $6,800 price point. You don’t earn a Gold Medal in the Olympics by aspiring and training to win Bronze. To achieve huge accomplishments you must work diligently towards big goals. We will continue to work closely with our supplier partners to find ways to reduce costs to accomplish our $6,800 goal.

As for the production date, I have frequently communicated it is driven by our fundraising efforts. The supporters that have made reservations for both vehicles and equity shares, and supported us through the 506c offering have made a huge impact on our progress. This is not an easy task, but it is very much moving forward, so as the funding picture becomes clearer, so does our production date.
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[Neal]

Awesome, another delay. I am in it for the long haul. But that is disappointing news for sure.

 

[Texconsin]

"Training" for $6,800 ("gold"), would be $7,300 ("silver") today, but telling the SEC $7,600 ("bronze").

Still a great price, but there goes my all-in bonus (as of today) and another $300 if the filing is ultimately accurate.

And, of course, there's also inflation between now and then...

 

[Florida Guy]

Hey Texconsin....do you realize that inflation most likely works in your favor? If they keep to the worst case estimate and sell the Elio for $7300 at the end of next year you actually benefit from inflation. Just put the $7300 into some interest bearing account now and when you need to write the $7300 check to buy the car the interest the account earns will be a bonus to you.

 

[Ian442]

A decent new compact sedan is double the price and double the car...I went all in for $100 this morning. I've spent that in lottery tickets over a few years.

I just have to baby my car longer lol.

 

[Rickb]

"Training" for $6,800 ("gold"), would be $7,300 ("silver") today, but telling the SEC $7,600 ("bronze").

Still a great price, but there goes my all-in bonus (as of today) and another $300 if the filing is ultimately accurate.

And, of course, there's also inflation between now and then...

Perhaps the SEC $7600 considers the average Elio sale/cost to include options. The options will be platinum for EM and it's investors and needs to be factored in sales and profit potential. Frankly, most Elio's will include the AMT which adds as I recall $1000 to the base $6800.

 

[Rickb]

This news can't be surprising to anyone based on the status of the P5 Build, EBuilds/testing, and current funding level. The positive key point is "it is very much moving forward". EM's tone was much more confident on production dates early on to stimulate pre-orders, when the funding picture was even less clear at the marketing campaign pre-order kickoff.

 

[Ty]

Paul said they were currently at $7,600 for the base model but were going to continue to work towards their $6,800 goal as per the email they sent out today.

From the letter:
There are two key pieces of information that we’d like to point out. One, the price listed in the Preliminary Offering Circular is “less than $7,600.00.” Second, we state that we do not expect to start delivering to customers until the fourth quarter of 2016 at the earliest.
Regarding the $7,600.00 statement, I have stated on previous occasions, the vehicle cost would be close to $7,300.00 if we went to market today. Our collective goal has always been and will remain focused on engineering the Elio to the $6,800 price point. You don’t earn a Gold Medal in the Olympics by aspiring and training to win Bronze. To achieve huge accomplishments you must work diligently towards big goals. We will continue to work closely with our supplier partners to find ways to reduce costs to accomplish our $6,800 goal.

 

[Ty]

The costs are skyrocketing, the delays are mounting. This will never happen. Everyone is stupid. Paul lies. This is a Ponzi scheme.

There, I wanted to beat the doomsdayers to the punch.


EDIT:

The gas cap is on the wrong side. The Lord Elgin dash is horrible (though I've never seen it in the car and it might actually be okay and definitely not worth the effort of removing). There is no YELLOW!!!

 

[Neal]

The costs are skyrocketing, the delays are mounting. This will never happen. Everyone is stupid. Paul lies. This is a Ponzi scheme.

There, I wanted to beat the doomsdayers to the punch.


EDIT:

The gas cap is on the wrong side. The Lord Elgin dash is horrible (though I've never seen it in the car and it might actually be okay and definitely not worth the effort of removing). There is no YELLOW!!!

Funny! I can hear it now. I'm still a strong believer, just a little disappointed for the day. Mainly because I know i will grow tired of hearing all the things you just mentioned.