What Is Elio Stock Trading For Today?

[RSchneider]

They'll have to go back to court to get the fine deferred and/or a higher court to appeal it altogether.
Then it's up to a judge and/or eventually judges plural. Again. More money in legal fees.

I never realized they were taking the $7.5M fine to court because there has never been any mention of that. That's new news. The last info I heard was this:

On May 31, 2017, we amended our agreement with Racer Trust pursuant to which our commitment to create 1,500 jobs by July 1, 2017 has been extended to September 1, 2019. This commitment carries a penalty of $5,000 for each full-time, permanent direct job that falls below the 1,500 target. At December 31, 2016, the Company recorded an accrued liability of $7,500,000, and the expense is included in general and administrative expenses in the Statement of Operations. On May 31, 2017, the Company entered into a third amendment and extended the deadline of this agreement to September 1, 2019. At that time, the Company has reclassified the estimate as an other long-term liability. The Company will continue to monitor the jobs creation agreement.

https://ir.eliomotors.com/all-sec-filings#document-380-0001140361-18-042917

 

[Elio Amazed]

I never realized they were taking the $7.5M fine to court because there has never been any mention of that. That's new news.

What fine are you talking about? I'm talking about the fine from the dealer's association.
Oh yeah, OK, The fine about the jobs in the contract with RACER trust. Yep. I agree. It'll be deferred.

 

[RSchneider]

What fine are you talking about? I'm talking about the fine from the dealer's association.
Oh yeah, OK, The fine about the jobs in the contract with RACER trust. Yep. I agree. It'll be deferred.

In my mind, $7.5M is a much bigger deal over the $545K dealer fine. The dealer fine can be paid off over many years. The $7.5M fine will be deferred up until Elio gets that big check. Then the lease payment has been reduced because they are leasing 150K less square footage than before but that costs $211K/month. Then there's the $173K/month for the equipment loan.

Elio racks up $384K/month in just loan and lease payments. I doubt that a structured settlement of $545K is not something Elio worried about. I would not put too much into the $545K fine. That's easy, it's the rest that will come back to haunt them unless they declare bankruptcy.

 

[Made in USA]

Paul Elio may have a bigger problem with Louisiana (maybe Ohio and some other states too). If Elio Motors continues to take deposits from residents of Louisiana without a franchise license then the judge(s) may find them guilty for each new case. It is possible that Paul could end up in jail unless the laws are changed, they quit taking reservations, or they agree to sell to franchised dealers.

 

[Ty]

Paul Elio may have a bigger problem with Louisiana (maybe Ohio and some other states too). If Elio Motors continues to take deposits from residents of Louisiana without a franchise license then the judge(s) may find them guilty for each new case. It is possible that Paul could end up in jail unless the laws are changed, they quit taking reservations, or they agree to sell to franchised dealers.

It's ALSO possible that Louisiana will not be able to fine someone for not having a manufacturers license when they don't manufacture anything. I mean, if this continues to be the case, I'd better warn my in-laws because they live in Louisiana and they ALSO don't manufacture vehicles. I suppose they will face a fine as well...

 

[RSchneider]

It's ALSO possible that Louisiana will not be able to fine someone for not having a manufacturers license when they don't manufacture anything. I mean, if this continues to be the case, I'd better warn my in-laws because they live in Louisiana and they ALSO don't manufacture vehicles. I suppose they will face a fine as well...

Do your in-laws take money for something they have never produced over the last 6 years? If i took $1K from you and promised to build you a house, would you be OK with it, if after 6 years that I haven't done a thing and you will never be living in said house no matter what, for the next 76 weeks? 76 weeks from now is sometime in mid October 2020 and that's just 76 weeks from I don't know.

 

[Husker1]

Do your in-laws take money for something they have never produced over the last 6 years? If i took $1K from you and promised to build you a house, would you be OK with it, if after 6 years that I haven't done a thing and you will never be living in said house no matter what, for the next 76 weeks? 76 weeks from now is sometime in mid October 2020 and that's just 76 weeks from I don't know.

Unfortunately Elio never “promised” anything!

 

[Elio Amazed]

I believe that part of the judgement against EM was that they the fine will increase substantially if they do not purchase a mfg license and dealer license 90 days from whenever the current appeal was turned down. That 90 day deadline was actually established because the case was in the process of being appealed. That's the only reason it was moved forward. Otherwise the deadline would have already passed and additional hefty fines would have already been levied on top of the $535K. I also believe I read that they have something like $200+K in court costs and lawyers fees to pay on top of the $535K.

 

[RSchneider]

Unfortunately Elio never “promised” anything!

Elio actually has. Here's one example:
Reporter: If I have my name on a reservation Paul, will I get that car in 2018?
Paul: Yes
https://www.cnbc.com/video/2016/12/27/elio-motors-reinvents-the-car.html
It's at the 4:00 mark.

 

[RSchneider]

Another example.

This is from the press conference at the Shreveport Plant in January 3, 2013 (on the Elio Motors YouTube Channel):

Paul: In the next 18 months we will actually be doing it (in reference to building the Elio in the Shreveport plant, which would be June 2014)

Paul: Before the decade is out, we will build vehicles in this facility and ship them to Europe, we will build vehicles in this facility and ship them to South America, we will build vehicles in this facility and ship them to China. (the decade will be out, December 31, 2019)

(look at the 8:30 mark onward)