Waffling On Base Price. Can They Make $6,800?

[skygazer6033]

Still doesn't explain how they're going to sell the first 46000 or so vehicles at a loss. Realistically the base price for a manual transmission car needs to be $7600 just to break even. The $1000 all in people (me included) have already paid EM their $1000 profit plus EM has to deduct another $650 to $850 in incentives form the price. Where's that money coming from?

 

[JEBar]

Still doesn't explain how they're going to sell the first 46000 or so vehicles at a loss. Realistically the base price for a manual transmission car needs to be $7600 just to break even. The $1000 all in people (me included) have already paid EM their $1000 profit plus EM has to deduct another $650 to $850 in incentives form the price. Where's that money coming from?

with projections of producing well over 250,000 +/- vehicles in their first year, I doubt they are sweating the 46,000 .... given that they have already spent the "All In" reservation money, that's part of doing business .... the "Want In" money hasn't been spent and will be at their disposal once they go into production.... they will use other funding to cover the gap in initial production cost and I find it hard to believe that EM's bean counters have worked it out

 

[outsydthebox]

Still doesn't explain how they're going to sell the first 46000 or so vehicles at a loss. Realistically the base price for a manual transmission car needs to be $7600 just to break even. The $1000 all in people (me included) have already paid EM their $1000 profit plus EM has to deduct another $650 to $850 in incentives form the price. Where's that money coming from?

Can you please show us where and how you arrived at the "$7600 break even" figure? Especially since, (in the beginning) EM will not have the "overhead" of the retail locations, salaries & commissions for salespeople, and workers at the marshalling centers?
These and other expenses have all been "figured in" to the $1,000 profit margin.

 

[WilliamH]

Still doesn't explain how they're going to sell the first 46000 or so vehicles at a loss. Realistically the base price for a manual transmission car needs to be $7600 just to break even. The $1000 all in people (me included) have already paid EM their $1000 profit plus EM has to deduct another $650 to $850 in incentives form the price. Where's that money coming from?

Tax, title, destination charge, dealers prep, options.........
Not saying that's the case, but you need to consider those things.

 

[Coss]

with projections of producing well over 250,000 +/- vehicles in their first year, I doubt they are sweating the 46,000 .... given that they have already spent the "All In" reservation money, that's part of doing business .... the "Want In" money hasn't been spent and will be at their disposal once they go into production.... they will use other funding to cover the gap in initial production cost and I find it hard to believe that EM's bean counters have worked it out

Of those 46,000 only 15,000 are All In $1K, the other 31,000 are all "something else"

 

[skygazer6033]

Can EM Make up for $650 to $850 in bonuses by not having the additional overhead of the retail stores and distribution centers? When will the funds from the "want in" folks be available? I'm not really a financial kind of guy but the numbers I'm seeing just aren't giving me a warm fuzzy feeling. Oh, the $7600 figure is $6800 + $650 to $850 in bonuses. Actually $7450 to $7650 break even. Keep in mind that the $1000 all in money has been used in day to day operating expenses.

 

[JEBar]

Oh, the $7600 figure is $6800 + $650 to $850 in bonuses. Actually $7450 to $7650 break even.

its easy to build all kinds of scenarios when one has only part of the relevant facts .... the reality is, none of us know very much about the financial in and outs under which EM is operating .... therefore, none of us can make educated comments as to how they plan to address this and other issues .... if you are really concerned, you might consider contacting EM directly via one of their media portals or as per instructions on their website at this link .... if you do, let us know what you find out

 

[Rickb]

My greatest speculative speculation is that will the Elio get to production close to the base price, not speculation on what's the profit made on each Elio and Elio option. Let Elio speculate on the financials. As of today, based on Elio's speculation that they expect the P5 to be at the LA Auto show..........I speculate the greatly anticipated P5 reveal may be delayed much like the delayed production dates and the delayed engine reveal. I hope I'm wrong.

 

[Ekh]

The Magic 8-Ball says: "Outlook uncertain."

 

[Jeff Porter]

The Magic 8-Ball says: "Outlook uncertain."

LOL, nice! Also available: "Ask again later."