lkptpete
Elio Aficionado
Elio needs a big cash infusion? Any some national exposure? Try to get on Shark Tank! Maybe a deal with "Mr. Wonderful (Kevin O'Leary) without an equity stake. Some type of royalty deal.... Hmmmmmm
-
Welcome to Elio Owners! Join today, registration is easy!
You can register using your Google, Facebook, or Twitter account, just click here.
Shark Tank
- Thread starter lkptpete
- Start date
zelio
Elio Addict
I believe this has been discussed elsewhere and the general consensus was, as I understand it, Paul Elio does not want to give up that much of his baby. I'm not familiar with the program since I don't watch any TV so have never seen it, but I get the impression the "sharks" are people who will help for a piece of the pie. My first instinct is not a good idea. I want Paul Elio in control because his dream is part of what I have been drawn to and a big influence on why I made my reservation. As you will note, I am not the least bit shy about stating my opinion and I don't ever consider it humble. LOL :-) Z
Last report I read............somewhere on this site I believe..............is that Elio has adequate funding to move ahead with their production plans.
lkptpete
Elio Aficionado
You understanding of the show is correct. There is a panel of 5 "sharks" (not always the same 5) who are big money players. People pitch investment opportunities to the sharks. Often the investment is for some % equity stake (part ownership) in the company. But SOMETIMES deals are structured with little or no equity stake, but with some kind of ongoing royalty agreement. For example: I invest $X and I get $Y back per car sold until my initial investment is paid back, then it reduces to $Z per car sold in perpetuity (forever). Also, just being on the show, even if no deal is made, would be huge exposure for the companyI believe this has been discussed elsewhere and the general consensus was, as I understand it, Paul Elio does not want to give up that much of his baby. I'm not familiar with the program since I don't watch any TV so have never seen it, but I get the impression the "sharks" are people who will help for a piece of the pie. My first instinct is not a good idea. I want Paul Elio in control because his dream is part of what I have been drawn to and a big influence on why I made my reservation. As you will note, I am not the least bit shy about stating my opinion and I don't ever consider it humble. LOLZ
zelio
Elio Addict
Thanks for the explanation. :-) Z
Elio Amazed
Elio Addict
- Joined
- Jun 30, 2014
- Messages
- 3,507
- Reaction score
- 4,630
The last I heard was that they are fully funded to build 25 prototypes and I've heard nothing beyond that.
What I'm wondering is how do you sell off mfg equipment (to raise funds) that you do not yet own? The last thing I heard was about a lease agreement for the plant. Kind of a "hold" on it, at least until someone else seriously interested in actually buying the entire plant pops up again.
Also, the way I understand it is that EM will not use anywhere near 100% of the plant and, through the board member that does the largest industrial property brokering business in the US, will be looking for related and/or unrelated business to lease the unused space in the plant? Kind of like a strip mall. Anyone have any information or insight on all that?
Last edited:
zelio
Elio Addict
From what I understand the equipment has been bought and therefore can be sold by EM. EM is not responsible for seeing to the occupancy of the entire facility. That is the business of the brokering business. EM is only responsible for occupying the part of the plant they intend to lease by a certain date (I think 2016). :-) Z
Let me help clear up some points as best as I can (I apologize for no reference links but I am sitting at an airport using my tablet and can't really easily search for references):
I agree that the only part of the funding process which we have heard is complete is the portion needed to complete the vehicle development program. As you mentioned this involves the buildout and testing of roughly 25 pre-production vehicles in preparation for production.
As Zelio mentioned all the plant equipment was actually purchased by EM in a deal separate from the property and EM expect to generate a significant amount of revenue from the sale of the portion of the equipment which they do not need. I know we have links to more details about this somewhere on here if someone would search.
The plant lease deal did experiences some major issues however as of May 1, 2014 IRG has a signed lease giving them sole control of the property. I hope someone searches and finds the articles or even the news video we have seen of this being confirmed directly by a Caddo Parish commissioner.
As you alluded to IRG is owned by Stuart Lichter who is an Elio board member, and investor, and they are a huge industrial property broker. Elio Motors does intend to only use about 1/3 of the entire plant complex so IRG is giving Elio Motors favorable lease terms in exchange for making money by leasing the rest of the space. The Caddo Parrish website has a copy of the actual lease so the terms are public and we have an EM business plan that even shows what EM has planned to pay IRG as a lease payment which if I remember correctly is nothing for the first year.
Hotscoots
Elio Addict
Paul Elio should go on Shark Tank for no other reason than to get some free TV exposure . He doesn't have to accept any of the Shark's offers .
Don't know how many people watch the show , but a segment on the Elio will undoubtedly create interest and additional pre-orders .
Don't know how many people watch the show , but a segment on the Elio will undoubtedly create interest and additional pre-orders .