The Aftermath

[Donnyboy]

I think they underestimated costs and got wrapped up over-engineering the prototypes, but I really never felt it was a scam.

Maurtis I think you hit the nail on the head! I think they underestimated the difficulty in getting the ATVM loan, and they spent all their time making plans to become the next Ford on day one. I also do not consider it a scam. They were trying to hit a home run, but they struck out. If they got the financing we'd all be calling Paul a genius. Hindsight is 20/20.

But now the question is can they still produce some cars on a small scale and start off like many others who build things in their garage and slowly build a loyal following. People buy kit cars and build them in their garage all the time. Elio tried to become a big automotive company before they even got a single car into anyone's hands. What happens if you start building small batches of cars and shipping them out. What happens if the Elio owners love driving them, and tell their friends about 80 mpg, etc. You would have so many orders coming in that there would a line of big investors around the block to finance them.

So I think the only option for Elio now is the small garage style operation. 65,000 reservations for a product that will probably average about $9,000.00 after options is $585,000,000 in sales. I think I would find some way to start building that product in my garage! Even if I had to install parts of the car myself I'd find someway to have it built! This ain't a Lexus! It's a cheap, fuel efficient, A to B car. Time to clean out your garage Paul!

 

[acentre]

Maurtis I think you hit the nail on the head! I think they underestimated the difficulty in getting the ATVM loan, and they spent all their time making plans to become the next Ford on day one. I also do not consider it a scam. They were trying to hit a home run, but they struck out. If they got the financing we'd all be calling Paul a genius. Hindsight is 20/20.

But now the question is can they still produce some cars on a small scale and start off like many others who build things in their garage and slowly build a loyal following. People buy kit cars and build them in their garage all the time. Elio tried to become a big automotive company before they even got a single car into anyone's hands. What happens if you start building small batches of cars and shipping them out. What happens if the Elio owners love driving them, and tell their friends about 80 mpg, etc. You would have so many orders coming in that there would a line of big investors around the block to finance them.

So I think the only option for Elio now is the small garage style operation. 65,000 reservations for a product that will probably average about $9,000.00 after options is $585,000,000 in sales. I think I would find some way to start building that product in my garage! Even if I had to install parts of the car myself I'd find someway to have it built! This ain't a Lexus! It's a cheap, fuel efficient, A to B car. Time to clean out your garage Paul!

Maybe contact Storm Sondors, or Electrameccanica, as they are getting vehicles to market or development, faster and less expensive than Paul.

 

[Donnyboy]

No thanks on the bike or anything electric. I've got my $1,000.00 all in #5763 reservation on the Elio.

 

[Karg]

What about the agreement some of us signed to get our Elio for 7K? If the car is going to cost me 9K, I want my money back now!

 

[Donnyboy]

Sorry if I confused anyone with the $9,000.00 comment. That was only based on my assumption for an average selling price AFTER options are added. The price is still 7K. But I know I'm adding automatic transmission, speakers, etc. so mine will go over 9K.

 

[DailyLunatic]

It's true that Elio calls itself a "vehicle design and manufacturing company" in its SEC filings:

"Motivated by the belief that America can engineer and build a high quality, reliable, safe, eco-friendly and affordable vehicle for everyone, engineering veteran Paul Elio founded Elio Motors, Inc. in October 2009 as an Arizona corporation. Today, Elio Motors is an American vehicle design and manufacturing company committed to providing safe, affordable and efficient vehicles. Leveraging existing technology, Elio Motors has designed a revolutionary front engine, front-wheel drive, two-seat, gasoline-powered vehicle, with two wheels in the front and one wheel in the rear – the Elio. Its unique design makes the vehicle more aerodynamic with significantly higher gas mileage than standard vehicles.

Elio Motors hopes to make a game-changing impact beyond sales; creating thousands of jobs, reducing dependence on foreign oil, reducing emissions, and favorably affecting the trade deficit by reducing foreign oil purchases, exporting vehicles, and providing a significant return for investors." (Form 10-12b filing, https://www.bamsec.com/filing/121465916012757?cik=1531266).

With that said, the rest of the filing makes it clear that Elio is definitely no closer to manufacturing than the prototype/pre-production phase. Calling yourself a manufacturer doesn't help with the Commission, but it doesn't make it true, either...at least not yet.

So, call them guilty... and fine them for each vehicle they have manufactured. Zero!

-sterling

 

[Ty]

I hate to say it but Paul has lost the confidence of the people who invested and believed in what he was trying to do.
Have you noticed the the reservations have stopped and so has new news of what 's going on and coming up about the car.
I think the dream of owing a elio is over and a lot of people got bilked out of their money. We all should have learned a important lesson.

False. At least not all of us have lost confidence.

 

[Coss]

False. At least not all of us have lost confidence.

Thank you Ty, agreed, there are still a number of us that still believe.

 

[Ian442]

I still believe. And I come here every day to read. However practicality had me replace the car with something other than an Elio.

 

[Coss]

I still believe. And I come here every day to read. However practicality had me replace the car with something other than an Elio.

Me too, but the Elio was never going to be the primary vehicle, it was supposed to be my --and--- vehicle.
And with age winning the war on me, it was a new one this time. I figure it's going to be the last in a long, very long, list of vehicles I've owned.
But this one is new, only the second time in my life I had a NEW car. So the Elio was always intended to be the "spare" vehicle, and pretty much the "fun" car.