Too Optomistic?

[HonestTex]

A small nugget, maybe insignificant, perhaps I misunderstood, was perhaps not all 100 are accounted for on fleet sales. My impression was that the fleet operators are/were to have a national presence to allow for the large variance in operating conditions.

My impression was that all 100 were accounted for, but the tour member I spoke with didn't know how many would go to which customer. ( did not discuss customer names)

 

[John Painter]

From a previous thread: " they are going to start one production line at 70% capacity or 350 Elio a day for 45 days."

SO, the pre-production 100 in December would be done on day one, do y'all think ours are coming in December also, or does there have to be some sort of a lag before real production starts.

Christmas sounds like such a great time to get my ELIO!!!

The 100 being built in December will be the only ones built this year, and for that matter, the only ones built until EM raises the capital to start mass production. To that end, "producing" 100 production vehicles and "selling" them, is likely believed by EM as necessary for successfully making it to the third stage of the ATVM loan process.

 

[outsydthebox]

The 100 being built in December will be the only ones built this year, and for that matter, the only ones built until EM raises the capital to start mass production. To that end, "producing" 100 production vehicles and "selling" them, is likely believed by EM as necessary for successfully making it to the third stage of the ATVM loan process.

Good point! 100 units "sold/delivered" would make EM an "established" manufacturer, NOT a "start-up" .

 

[Folks]

The 100 being built in December will be the only ones built this year, and for that matter, the only ones built until EM raises the capital to start mass production. To that end, "producing" 100 production vehicles and "selling" them, is likely believed by EM as necessary for successfully making it to the third stage of the ATVM loan process.

I think Paul Elio last said we need 200 million for the 3rd and final phase. When one sees the trillions in US Gov waist with all the belly up fiascos of alternative energy companies, a cool 200 million dollar Gov loan should be a snap for Paul to acquire. But that's just me. Since when is making sense required when the Federal Gov is involved.

 

[John Painter]

I think Paul Elio last said we need 200 million for the 3rd and final phase. When one sees the trillions in US Gov waist with all the belly up fiascos of alternative energy companies, a cool 200 million dollar Gov loan should be a snap for Paul to acquire. But that's just me. Since when is making sense required when the Federal Gov is involved.

Elio Motor's needs aprox $240 million from post testing stage forward in order to get into production. It's pretty clear the two major hurdles EM needs to still clear to be a contender for the ATVM loan are demonstration of ability to pay back the loan and tests that verify fuel efficiency over 75mpg. I think EM will be able to easily surpass 75mpg, I think EM still has some work to do to demonstrate ability to pay back the loan, but they are working like dogs to make that happen.

I attached a good synopsis of the ATVM program, history, etc it's useful to help understand the background of the ATVM program, what it's for and not for, it's practically required reading for members of this forum. https://www.fas.org/sgp/crs/misc/R42064.pdf

 

[John Painter]

Good point! 100 units "sold/delivered" would make EM an "established" manufacturer, NOT a "start-up" .

 

[Elio Amazed]

Elio Motor's needs aprox $240 million from post testing stage forward in order to get into production. It's pretty clear the two major hurdles EM needs to still clear to be a contender for the ATVM loan are demonstration of ability to pay back the loan and tests that verify fuel efficiency over 75mpg. I think EM will be able to easily surpass 75mpg, I think EM still has some work to do to demonstrate ability to pay back the loan, but they are working like dogs to make that happen.

I attached a good synopsis of the ATVM program, history, etc it's useful to help understand the background of the ATVM program, what it's for and not for, it's practically required reading for members of this forum. https://www.fas.org/sgp/crs/misc/R42064.pdf

So John...
As I understand it, EM is asking for a guarantee on $183M worth of loans.
Do you have any theories as to where the rest other $57M will come from?

 

[slinches]

I think they could raise $50 M of that from a second Reg A+ round if they time it just after the ATVM loan is secured. Although, I doubt they'll need to. Plenty of accredited investors will be willing to invest at that point.

 

[Coss]

I think they could raise $50 M of that from a second Reg A+ round if they time it just after the ATVM loan is secured. Although, I doubt they'll need to. Plenty of accredited investors will be willing to invest at that point.

They do have an investor section already live; that happened months before the Reg A+, the information is on EM's page.

 

[Marshall]

From a previous thread: " they are going to start one production line at 70% capacity or 350 Elio a day for 45 days."

SO, the pre-production 100 in December would be done on day one, do y'all think ours are coming in December also, or does there have to be some sort of a lag before real production starts.

Christmas sounds like such a great time to get my ELIO!!!

The lag is going to be there as the E series is a test batch and feedback (and funding) is required before actual production begins.

My guess is April 2017 target start with August 2017 being more realistic, even if all goes well. That gives a 90 day feedback window minimum with 210 days more likely to fix unexpected minor problems. That puts 2017 production right around 50,000 based on current line output estimates with 2018 being the roll out of open competition for the impulse buyers.