Reservations: 65341 As Of 6/20/2017

[Coss]

I suspect you are right. It might be that Elio is not at liberty to discuss the fine details of the ATVM application, but I have not seen any official mention that 65,000 was something the DOE asked for but more what was offered up by Elio. I think it is just a way to artificially create demand. And it works, I find myself tempted to put down a $100 all-in to lock in $7,000 even though I am not interested in the first year non-turbo.

If you recall, we were told that number, and the commitment sign on were worked out between EM and the ATVM people. Why or for what they never said.

 

[Maurtis]

If you recall, we were told that number, and the commitment sign on were worked out between EM and the ATVM people. Why or for what they never said.

Were we told that the ATVM was actually involved with working out the 65,000 number? I remember us speculating a lot about where it actually came from. Elio mentions the ATVM and needing binding commitments, along with the 65,000 number here: https://www.eliomotors.com/elio-motors-locks-in-its-price/

But I am missing where they actually say the ATVM wanted 65,000 reservations (and I assume a certain percentage locked in). At the time they were at 56,000 non-binding and that was not good enough. The ATVM could have said "get us around 10,000 more and if 30% or more are binding, we are golden", but those details were not disclosed

 

[Coss]

From that article:
Based on our current engineering models and materials calculations at this juncture, we will lock in the base price for “non-refundable” reservation holders at $7,300* until we reach 65,000 total reservations (all reservations, both non-refundable and refundable). Given the current expectations, this price supports our vision and provides the most affordable vehicle option on the market.
And
Until we reach 65,000 total reservations, “non-refundable” reservation holders will receive the following:

• Locked Price: $7,300* for a base model vehicle for “non-refundable” reservation holders, until we reach 65,000 total reservations. No action required if you currently have a “non-refundable” reservation.
• Special Incentive to obtain Lower $7,000* Locked Price: Until we reach 65,000 total reservations, an added incentive for “non-refundable” reservation holders will be a locked price of $7,000* for a base model vehicle for “non-refundable” reservation holders that make a binding commitment to purchase.

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  Hmmm so the 65K is the calculated break even point? Or the point that will let them meet the cost effective point? Where did the 65k come from? EM or ?

 

[wizard of ahs]

........

• Hmmm so the 65K is the calculated break even point? Or the point that will let them meet the cost effective point? Where did the 65k come from? EM or ?

I have looked, but can not find it, but I'm sure "somewhere" I read that Paul came up with the 65,000 number as the number for the first year of production . Again, I can't find where I read that, but it HAS been 4 years ago

 

[TCBronson]

First year or first model year of production sounds reasonable for the reason 65000 was chosen, along with meeting ATVM loan requirements. Who really knows? I do hope there is some good news when reservations finally hit the "magic" 65000 mark.

 

[Johnny Acree]

From NY Times
Mr. Elio said that 90 percent of the content in the front-wheel-drive production car would come from North America. The company has raised $50 million for the venture from private investors, he said, outlining a production goal of 250,000 vehicles per year.

 

[Sethodine]

First-year production might still be far below what full-capacity production numbers are. Even if it would only take a few months to get up to 250k, there might be a funding issue that they are projecting will prevent them from ramping up quite so fast. Such as, they won't have the cash on hand to build the tooling, and will be repaying current debts for a while before they can get that second line going. Or maybe there is an investor waiting in the wings that wants to see proven market acceptence/profitability before they will spring for the tooling for additional production lines.

 

[Coss]

I have looked, but can not find it, but I'm sure "somewhere" I read that Paul came up with the 65,000 number as the number for the first year of production . Again, I can't find where I read that, but it HAS been 4 years ago

Well, no; the 65K only surfaced last year. Before that I had asked the tour group about "Paul being fair" as when are they going to lock the reservations, so the $100 & $250 people and all of the "Want in" don't get pushed back to oblivion. It was on my list of questions when I went to see the P4 in Portland.

 

[Marshall]

Just speculating -
Government bureaucracies usually have a checklist of items that need to be checked off before a loan application can receive approval. I suspect they worked out a deal that indicated that 65,000 reservations and a subset of commitments to purchase them when produced allows them to check that item off the list.

It is almost never a situation where meeting any one particular requirement is the complete solution to getting approval, but any one particular item which is NOT met is often enough to prevent approval.

 

[RSchneider]

How about this. The powers here present Elio with this marketing plan. Have a contest where current Elio All-Ins on this site will submit a two page presentation on how they could promote Elio. This would be because Elio would build 100 pre production cars and have them ready in March. They would be given out to the people in various geographical areas of the country that have the best proposals. In trade for getting a pre production Elio, they have to go to various events and promote the product. Then just go for a drive on the weekends and hang out where many people are. When they come up, you talk up the product (this is what many car companies do right now). You have to post regularly on social media as to what you are doing. You get to keep the car until production starts in 2018, then you get a free production unit and they take away the pre production unit.

Cheap marketing and it really gets the word out.