New Elio email

[johnsnownw]

I didn't read all 12 pages, but this is clearly a play by Elio to take advantage of the tax credit, especially with talk of increasing the rebate. They tried for the ATVM loan before, so it's not a new play so-to-speak.

They may garner some interest again, but I think the majority of people who initially bought into this idea wanted a gas vehicle, so an EV may be a tough sell. Also, they weren't exactly treated well these last few years, so that's another issue.

The market is going to be flooded with BEVs in the next few years, and I'm not sure a $15k 150 mile Elio will be competitive, several 3 wheeled BEV companies have already, or will, beat them to market.

 

[Michael Casey]

Were's my ELIO, Were's my ELIO, Were's my ELIO!!!!

 

[Elio Amazed]

If you are only making federal minimum wage, than why would you be buying a new car or motorcycle? Let alone an electric one? Part and parcel to this conversation is "who are buying new vehicles?"

But minimum wage here is $15/hr, or about $35k/yr. At that rate, a $1500 tax credit would basically wipe out your tax liability for the entire year, so you'd get back everything you paid out in withholding throughout the year.

The point of drawing out a retirement account to incur a tax liability, is that the end result is you get those retirement funds tax-free because the EV credit wiped out the liability. When buying an EV, if the credit is greater than your liability then you lose out on the difference. So might as well take some advantage of that and get some tax-free cash out of an otherwise taxed account.

Part and parcel is you were off base, are still off base, and now you're making excuses for what you posted.

 

[AriLea]

I think RACER will OWN Elio soon.

Given who Racer Trust is.... hmmm.... If they stick to their mandate (remediation), they would first try and find a buyer if they could. I don't think their charter is ever to run ElioMotors for themselves. Although, if they stick to their green mandate and financial interests, the Elio expansion into EV markets makes sense for them. Maybe they would seek a guarantee from a buyer or trust that the EM product be completed to market.

Given a sale, this buyer will, to even play, will have to value the Elio reservations and buyer interests, or secretly desire an Elio still-born squash-out. If that buyer is GM, I would not count on what would happen.

This EV expansion however, would give GM, if they bought EM a fast leg up into Tesla territory. Anyway I don't think GM is that savvy in risk taking. GM most likely will just count on EM disappearing on it's own. Someone starting to seriously bid on an EM purchase would make them re-think, however.

I don't know, but GM owns a number of separate makes, and the Elio product is a completely new segment, even a game changer. So if they changed their stripes, took a risk, yes EM could be a good thing for the GM holding company. But they have never gone to such a place in the past, it would be out of character.

I would not want Racer Trust to take over, unless they were to seek ways going forward to fully finance operations. But at the moment all that equipment that EM is sitting on may look more valuable than when the factory first shut down.

Could Tesla be a plausible buyer?

Let's hope a Racer Trust adversarial acquisition doesn't happen anytime soon.

 

[AriLea]

Does anyone know how many people signed the commitment to buy the Elio at the price (I believe) of $7,400?

The price difference per vehicle is $14,900 - $7,400 = $7,500.
Assuming profit was 25% of the $14,900, this equals $3,725 profit per vehicle.
The loss Elio Motors would take per vehicle would be $7,500 - $3725 = $3,775.

Perhaps Elio Motors would be able to honor the price of $7,400 to those who signed the commitment.

I do not know.

I would like to hear other opinions.

It would be bad public relations if they did not honor these commitments made by their followers.
I am sure Paul Elio has talked about this with expert lawyers.

Best guess is they will honor your deposit and your position in line, but charge the full price for the EV. So full EV price minus your deposit. Maybe at best they will lock in your EV price at some point, but only if they also do that for all new reservations for the EV. So watch for any lock-offers to pop up.

 

[AriLea]

I don't know about you, but the more I think about that email from Elio, the more sure I am they are screwing with us. They have an ulterior motive and it isn't for our benefit.

Very possible at this point. Of course, I will put no more money into that, and I am putting ongoing hope and thought into the BEX project.
Either way, there is nothing material to do until a product comes available form anywhere that it does..
Oh yea, and be honest with others, advise only this, believe it when you see it.

 

[Grumpy Cat]

Given who Racer Trust is.... hmmm.... If they stick to their mandate (remediation), they would first try and find a buyer if they could. I don't think their charter is ever to run ElioMotors for themselves. Although, if they stick to their green mandate and financial interests, the Elio expansion into EV markets makes sense for them. Maybe they would seek a guarantee from a buyer or trust that the EM product be completed to market.

Given a sale, this buyer will, to even play, will have to value the Elio reservations and buyer interests, or secretly desire an Elio still-born squash-out. If that buyer is GM, I would not count on what would happen.

This EV expansion however, would give GM, if they bought EM a fast leg up into Tesla territory. Anyway I don't think GM is that savvy in risk taking. GM most likely will just count on EM disappearing on it's own. Someone starting to seriously bid on an EM purchase would make them re-think, however.

I don't know, but GM owns a number of separate makes, and the Elio product is a completely new segment, even a game changer. So if they changed their stripes, took a risk, yes EM could be a good thing for the GM holding company. But they have never gone to such a place in the past, it would be out of character.

I would not want Racer Trust to take over, unless they were to seek ways going forward to fully finance operations. But at the moment all that equipment that EM is sitting on may look more valuable than when the factory first shut down.

Could Tesla be a plausible buyer?

Let's hope a Racer Trust adversarial acquisition doesn't happen anytime soon.

Doubtful Tesla would by it. Why do I think that? They'd just make their own. They have the guts, they just need to make a body. With that said, Tesla won't build it either because they can't keep up with current demand.

Best guess is they will honor your deposit and your position in line, but charge the full price for the EV. So full EV price minus your deposit. Maybe at best they will lock in your EV price at some point, but only if they also do that for all new reservations for the EV. So watch for any lock-offers to pop up.

I doubt they'd honor it.

 

[JK]

Tomorrow is Friday. If we're going to get a weekly email from EM it will probably be tomorrow. What will they have to say? I wonder....

 

[skychief]

Going electric is a smart move for Elio.

The 1.0 liter 3-cylinder gasoline engine made by Mercedes Benz had serious design flaw in the manufacturing process which would lead to inevitable mechanical failure in a short period of time. The problem was with the coating on the cylynder walls. Instead of cast iron liners (which is time-proven technology for reliable and long lasting engines), they were going to forgo the cylinder liners entirely and just spray some magic coating directly to the aluminum block. Good grief. *facepalm*

It was an idiotic idea, and was doomed for failure and recalls.

Going electric is a smart move.

(But I seriously doubt that Elio will ever actually produce one (other than a few prototypes maybe)

 

[Sethodine]

New Facebook post the other day clarified that their reason for going electric is that's where investors are looking to invest.

The plan is built the Elio-E first, then follow up with the Elio-G gas model.

Reservation holders can use their Spot-in-line for either model.

Not holding my breath though.