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Not Encouraging News For Elio Coin

Discussion in 'In The News' started by Bilbo B, May 10, 2019.

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  1. Bilbo B

    Bilbo B Elio Addict

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    Google pushed this article to me this morning:

    https://www.coindesk.com/hong-kong-...verstock-investment-ends-with-5-million-close

    Some of the more interesting bits:

    "The original deal with GSR, announced last summer, was expected to bring $404 million to tZERO, but was postponed several times and downsized to $100 million in March, and then to $30 million in April."

    "Instead of buying $30 million of tZERO tokens, as previously agreed, the Hong Kong private equity fund invested just $5 million in tZERO equity, in the traditional form"

    "Elio Motors, a car manufacturer that Byrne has previously said was working on a token issuance with tZERO, will not be among the first issuers on the platform, Noursalehi said. Elio wants to code a more complicated functionality into their tokens, like allowing token holders to get their ordered cars faster, and working on that will take more time, he explained. By the end of this year, tZERO hopes to get up to 10 tokens traded on its alternative trading system (ATS)."


    The way I read that, it will be at least 2020 before there is an Elio Coin.

    It would be nice to hear this sort of stuff directly from Paul/EM. Who knows how accurate this is, but it's all we've got. Getting the announcement/update from Elio would ensure they could spin it their way. I don't buy the whole "The SEC won't let us talk about it" bit. tZERO is talking about it.
     
  2. mkiker2089

    mkiker2089 Elio Addict

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    I actually read that as good news. I just posted a dire "sky is falling" response in the stock thread before reading this. It gives us a possible date and confirms that the coins are more like physical ownership instead of just stock. It re-raises questions about the reservation system though. It's known that having so many people locked in is at this point a huge liability instead of an asset. I don't see a way out of it though. If they let token holders skip ahead then it's breach of contract. It's too early to think about that however.

    I said before that no news before fall 2018 and I was giving up. I want the coin thing to generate news but I'm still pretty much giving up. I'm just a little less sure about being right in giving up.

    edit- by possible date I mean Jan 2020. If Elio is really getting ready that should be enough time to work out the legal issues.
     
  3. Ty

    Ty Elio Addict

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    "It's known that having so many people locked in is at this point a huge liability instead of an asset."

    I don't see it that way. Elio had the costs nailed down for 90+ percent of the parts and baked in $1,000 of profit into each vehicle. That included the costs of labor, manufacturing, rent, recalls, etc. That $1,000 profit is above paying everyone and all the bills. PLUS, having tens of thousands of Elios roaming around will be great advertising that is essentially free. I don't see it as a liability at all. At worst, costs will rise to the point it will eat away the initial profit of a base vehicle. Still, accessories will generate 20% profit (per Elio's plan). So, if costs rise 14%, Elio would break even on the base model but still make 20% on all accessories. That includes, btw, the automatic which is thought to be a $1,000 option which would effectively increase profit by $200 on probably 95% of all the vehicles.

    I see this as a good thing.
     
    ehwatt likes this.
  4. mkiker2089

    mkiker2089 Elio Addict

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    I see it as a liability because the money is already spent and now any future hype will create delays. If Elio got them money today, which they won't, and I buy one today then it will be 3 years before they get to me.
     
  5. mkiker2089

    mkiker2089 Elio Addict

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    Let me clarify, I was on my phone before and hate typing on it. Reservations without a product is much like a loan. Short term loans are ok but the longer the term the worse it gets. Refundable deposits are somewhat a liability because the money has to be locked in some sort of liquid account. Elio may be getting interest on that, let's hope so. Non-refundable deposits are free to be spent. Both are, I think, regulated by federal law.

    With a relatively high number of reservations versus demand it's going to be a problem. Why you ask, because even with good press and full funding Elio has pretty much capped the demand for the foreseeable future. Why you ask, because people like myself who have not reserved (I bought stock instead) are going to be less likely to buy one knowing that we go to the end of a long line.

    That's not even getting into the debacle of the ElioCoin. How can you induce people to buy the coin without giving them a car to go with it? How can you let coin holders jump the line without breaching the contract with the 1000 dollar all in reservation holders?

    It's a well known business practice not to accept money until you are fairly close to delivering on that money. These people aren't investors or speculators. They are paying customers with all the legal rights associated with it.

    edit-- I do see your point though and if Elio does get started having a paying customer base to start can be nice. I'd be happier if they had less reservations though because at a certain point a slow supply chain can backfire. I think a good scenario would be if they get funded and can really ramp up production to push through the all-in reservations quickly.
     
  6. RSchneider

    RSchneider Elio Addict

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    You know I like numbers. I can’t find anywhere that Elio plans on making $1K per base car and 20% on options. Plus I can’t find at what price that $1K profit works and how many dollars in options on average that people will spend. I do know what the latest price (over a year old) the car needs to sell for and the breakdown of discounts that most of the 65k will get (by what I posted months ago, Elio will be taking a bath on those non refundable reservations).

    As for demand, it took 52 months for 65k reservations. That’s not high in my book.
     
  7. Maurtis

    Maurtis Elio Addict

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    It might come down to a semantics issue, those all-ins have a spot in line but which line is it? Elio might say those are for the production units and before those get released, ElioCoin holders get their special "Signature Series"? Who knows... Assuming they even sold a single ElioCoin through Jones Trading? I was under the assumption that they were available through Jones Trading last year for accredited investors and a separate deal from tZero.

    But we heard absolutely nothing about that once it started. Seems like something people who hold Elio stock would like to know... "Just read the blog", right?
     
  8. RSchneider

    RSchneider Elio Addict

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    I’m confused about the 10 Eliocoins. What’s an Eliocoin worth? They need $376M so does that mean that the coin is worth $37.6M? Even the $25M they are looking for, that would be $2.5M/coin. No matter what, it better be a fleet of awesome Sig edition Elio for that price. If it’s, buy an Eliocoin, move to the front of the line? If they can pull that off then I’m 1000% for it.
     
  9. Ty

    Ty Elio Addict

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    3 years before they get to you? They'll be able to produce about 550 per day on that line. 80,000 reservations before yours (not close to that yet) would take 160 full-rate production days. If you add the 72 weeks to that, well, I suppose that would be more than 2 years.

    I suppose you could say 3 years from funding to getting a car to a new reservationist.
     
  10. Ty

    Ty Elio Addict

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    Honestly, I can't find the $1,000 profit anywhere either. I KNOW Elio had it in a Blog or Report where they talked about added cost to the vehicles to cover warranty, rework, salaries, rent, $1,000 profit per vehicle, 20% above cost on accessories, etc. But, I can't find it now.
     
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