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Momentum V151

Coss

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Elio Motors Momentum v151



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Today's Momentum looks at two pieces of industry news: how to prepare for the upcoming summer driving season and a potential change in the octane of regular gasoline.



*MSRP excludes destination/delivery charges, taxes, title, registration, and options/installation.

Certain statements in this email including, but not limited to, statements related to anticipated commencement of commercial production, targeted pricing and performance goals, and statements that otherwise relate to future periods are forward-looking statements. These statements involve risks and uncertainties, which are described in more detail in the Company’s periodic reports filed with the SEC, specifically the most recent reports which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. Forward-looking statements are made and based on information available to the Company on the date of this email. Elio Motors assumes no obligation to update the information in this email.



Elio Motors 2942 North 24th Street Suite 114-700 Phoenix, AZ 85016 US


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Coss

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Page 2
Industry News
April 18, 2018

Stay on the RoadThe issue of a vehicle’s reliability is rarely a major concern for drivers. Until, of course, their vehicle is sitting on the side of the road, requiring a tow to the local shop. With the Elio, we will offer a 3 year, 36,000-mile bumper-to-bumper warranty, and we believe that Elio Motors owners will be able to drive their vehicles without worrying too much about reliability. As the summer approaches, and with it the busy summer driving season, AAA recently published helpful information for drivers.


In 2017 alone, AAA fielded over 32 million calls. Not surprisingly, most calls were for older vehicles. According to AAA’s fact sheet, “In 2017, 67 percent of calls AAA received for roadside assistance were for vehicles 10 years and older, while 33 percent of calls received were for newer vehicles (age 9 years and newer). Approximately thirty-five percent of the vehicles AAA responded to at the roadside required a tow to a repair facility. Of those vehicles, 81 percent were 10 years and older.” The most common reasons for breakdowns included battery and electrical issues, overheating, and blown tires.



AAA offered several pieces of advice for the rapidly approaching summer driving season. To avoid spending time on the shoulder, follow your vehicle’s recommended maintenance schedule, regularly test your battery, look out for pooled liquids after you’ve parked, and frequently inspect your tires.

High Octane

According to Automotive News, the automotive industry is currently lobbying to make 95 octane gasoline the new standard for regular gasoline in the United States. 95 octane gasoline is currently the standard in Europe and is cited as a way to improve gas mileage while lowering greenhouse emissions. One automotive executive believes that using 95 octane fuel can increase fuel economy by approximately 3%.



According to the article, “Higher octane enables engineers to raise an engine’s compression ratio. That, in turn, increases horsepower and torque and helps the engine run more efficiently. Raising an engine’s compression may be the most cost-effective — and untapped — way to improve fuel economy and lower carbon dioxide emissions. Increasing compression usually requires a modification to the pistons or the cylinder head’s combustion chambers.”

One major roadblock in changing to 95 octane gasoline is the initial expense. For 95 octane fuel to be affordable, refiners would need to produce a high volume of the fuel. Whether the change will be made remains to be seen, but improved fuel efficiency should always be a major focus for automakers.
 

Coss

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Gee Hi octane gas, what a concept.
Maybe then we'll stop having fuel problems because of watered down gas.
I had my lawn tractor and pressure washer quit because of watered down gas.
(Note- both the lawn tractor and Pressure washer sat in the shed (water tight) all winter)
I ran the check on it, and sure enough, regular was 20 percent water, I didn't believe it.
Premium was 93 octane, and it came out perfect, 100 percent gas, both these came from the same station.
And this was no fly-by-night operation, it was an Arco station.
 

RSchneider

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Regarding the octane, the Elio article needs to be corrected because Elio Motors left out some information to make it seem like we would get 95 octane fuel. Even the AN article needs to explain how octane is calculated. In the end, 95 is what you see in Europe as a base gas. That's the same at 91 here in the US. Both are calculated differently. The 95 that Elio talks about is RON. Your gas at the pump is RON+MON/2, thus the lower number for the same product.

Also I was at this specific talk at the WCX World Congress. It comes down to that the automotive industry want's to make 91 the minimum grade fuel because this will allow them to raise their MPG ratings because it shifts the cost to the petroleum industry and consumer. I have a feeling that it'll never go through.

Also, lower octane gas does not contain 20% water. If you got that, then you got a bad batch of gas. Gas typically has no more than 1% because at that point, it'll separate out and can easily be caught by the water separators in the pumps.

This guy explains it the best when it comes to the Elio Motors mention of 95 octane:
 

Ty

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Gee Hi octane gas, what a concept.
Maybe then we'll stop having fuel problems because of watered down gas.
I had my lawn tractor and pressure washer quit because of watered down gas.
(Note- both the lawn tractor and Pressure washer sat in the shed (water tight) all winter)
I ran the check on it, and sure enough, regular was 20 percent water, I didn't believe it.
Premium was 93 octane, and it came out perfect, 100 percent gas, both these came from the same station.
And this was no fly-by-night operation, it was an Arco station.

This won't stop Ethanol from attracting water and "watering down" your gas. Unfortunately, one of the side effects of having ethanol in gas is that if it sits around, it attracts water which leads you to say "Dang. That station sold me watered down gas" which most likely isn't the case at all.

 
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