Solo

[RSchneider]

I don't know all the details, but apparently they had aprox 22,000 x $1,000 deposits, and the over 40,000 rest were $100 deposits.

Just bizzare to me that they aren't selling cars today with $22+ million in deposits, what fantastic mismanagement, or something sinister.

They had 57K in non refundables, the other 8K were ron refundables. It took 52 months to get to the 65K threshold. The reservations took place in Jan 2013 and went for 52 months afterwards. Thus, about 15K per year but it was a pretty good amount in the beginning and then petered off down the road. They also did a commit to buy which was you were required to buy whatever they made as long as you put $1K down and they gave you a $500 bonus. Plus, locked into a $7K purchase price. That means, by 2018, all you had to do was hand over $5500 for the Elio. Which was a great deal. Thus, just less than 21,500 people signed up for that. Smokin deal if you put down $1K back in 2013. It was an inflation proof product.

Around 36K locked in a $7300 price too. So there are about 57K that are waiting for a great deal. The rest are probability in limbo as they never locked into the price. As all of us know, it was an iron clad contract. Longer this plays out, the better it is.

Now we see why Elio is going to make the Elio-E. When they make a huge amount of money on that, the Elio-G will be introduced. Elio changed the rules a bit and everyone is happy. Now we have to wait for the EV version to be a hit, make the company billions and then the ICE version will be rewarded to all of those that waited. From the latest SEC filing, 2023 is when the EV version comes out. I can't wait.

They had about $26M in deposits. All of that money is long gone. They only raised a total f $110M and needed $just over $600M to make the business plan to work. $36M was spent on the vehicle. All of this is in the SEC filings. Good that it is, because you see the numbers as opposed to just guessing as to what happened.

 

[Jambe]

There were at least 2,451 who reported making the $1,000 deposit. I'm sure there were many who did not report their deposit.

 

[RSchneider]

There were at least 2,451 who reported making the $1,000 deposit. I'm sure there were many who did not report their deposit.

Just read the SEC filings and then you'll get the official numbers. 2,451 might have been a number back in 2013 though.

 

[3wheelin]

I don't know all the details, but apparently they had aprox 22,000 x $1,000 deposits, and the over 40,000 rest were $100 deposits.

Just bizzare to me that they aren't selling cars today with $22+ million in deposits, what fantastic mismanagement, or something sinister.

The excitement of owning a fully enclosed ELIO 3wheeler at a bargain price of 7k drove people to make reservations which explained the initial large demand for it. I was one of them supporters early on.

 

[RSchneider]

I love the enthusiasm though and I wish them luck with their ELIO EV.

The Elio EV is only $14,900K. So it's really cheap. Plus, it FUN! How do I know it's FUN? Because, just look at the Elio website and they tell me it is. IT'S FUN! IT'S ELECTRIC!

Then it goes 110mph and only needs to be charged every three days.

 

[3wheelin]

The Elio EV is only $14,900K. So it's really cheap. Plus, it FUN! How do I know it's FUN? Because, just look at the Elio website and they tell me it is. IT'S FUN! IT'S ELECTRIC!

Then it goes 110mph and only needs to be charged every three days.

Wait, didn't you just said you wanted every 3wheelers to fail??? Make up your mind!

 

[Mark BEX]

All of this is in the SEC filings. Good that it is, because you see the numbers as opposed to just guessing as to what happened.

。if one is interested enough one might。

I have a general interest in knowing the rough numbers， but not the details。

 

[RSchneider]

。if one is interested enough one might。

I have a general interest in knowing the rough numbers， but not the details。

There were lots of bad decisions:
1. Leasing the plant in 2013 - Defaulted on first payment and got penalized.
2. Bought the equipment in the plant in 2013 for $25M but took out a loan to do so. Defaulted on the first payment and interest went to 18%.
3. If 1500 weren't employed at the plant by 2015, then it resulted in a fine. Since 0 were employed, $7.5M fine.
4. Reservation system. So, there was a plan that if you did a commit to buy and put down $1K, you locked into a price of $7K. There was a match of $50 too. So today, those people (21,500 of them) would only have to hand over $5500.
5. 57,500 people did a non refundable. $7500 did refundable. Out of the 57,500, take out the 21,500, the rest locked into a price of $7300. All of those first vehicles as of today, come at a massive loss.
6. $16M was raised with the IPO. 25 e-types to be built. Instead, they did a complete redesign on the chassis (went from tube frame and plastic panels to unibody and pressed steel panels), built 2 and used the rest to pay off debt.
7. Spent money developing a new engine when there were at least 10 others they could have sourced.
8. Raised $110M and spent $36M on the vehicle. All the rest went to paying the bills for things like the lease, equipment loan, traveling road show and paying lobbyists to change the helmet law. Overall budget from day on came in to around $600M. Thus $110M was not even close.
9. Reservation system raised $26.5M. When the money coming in on those reservations went down, they were starting to make cutbacks (eliminating everyone but 2 and one is Paul) by the end of 2016.
10. Paul makes $250K per year racking up around $17M in debt a year for the company. It's north of $230M in debt today.
11. Spent time on the Eliocoin
12. Ditched their own engine
13. Announced the Elio-E as a way to circumvent the disaster that is noted in point #5.

 

[3wheelin]

There were lots of bad decisions:
1. Leasing the plant in 2013 - Defaulted on first payment and got penalized.
2. Bought the equipment in the plant in 2013 for $25M but took out a loan to do so. Defaulted on the first payment and interest went to 18%.
3. If 1500 weren't employed at the plant by 2015, then it resulted in a fine. Since 0 were employed, $7.5M fine.
4. Reservation system. So, there was a plan that if you did a commit to buy and put down $1K, you locked into a price of $7K. There was a match of $50 too. So today, those people (21,500 of them) would only have to hand over $5500.
5. 57,500 people did a non refundable. $7500 did refundable. Out of the 57,500, take out the 21,500, the rest locked into a price of $7300. All of those first vehicles as of today, come at a massive loss.
6. $16M was raised with the IPO. 25 e-types to be built. Instead, they did a complete redesign on the chassis (went from tube frame and plastic panels to unibody and pressed steel panels), built 2 and used the rest to pay off debt.
7. Spent money developing a new engine when there were at least 10 others they could have sourced.
8. Raised $110M and spent $36M on the vehicle. All the rest went to paying the bills for things like the lease, equipment loan, traveling road show and paying lobbyists to change the helmet law. Overall budget from day on came in to around $600M. Thus $110M was not even close.
9. Reservation system raised $26.5M. When the money coming in on those reservations went down, they were starting to make cutbacks (eliminating everyone but 2 and one is Paul) by the end of 2016.
10. Paul makes $250K per year racking up around $17M in debt a year for the company. It's north of $230M in debt today.
11. Spent time on the Eliocoin
12. Ditched their own engine
13. Announced the Elio-E as a way to circumvent the disaster that is noted in point #5.

These matters have been discussed and everybody knows about this details. You may wanna refer back to the old ELIO posts. Do you have anything new?

 

[RSchneider]

These matters have been discussed and everybody knows about this details. You may wanna refer back to the old ELIO posts. Do you have anything new?

Read the previous post from mine. I was just updating Mark BEX. That's all.