raptor213
Elio Addict
Whenever I encounter the possibility of Elio Motors being a scam or fraud or swindle, whether on FaceBook or ElioOwners.com or Reddit or even the breakroom at work full of naysayers, I find myself falling back on one simple debunking defense mechanism:
Elio Motors, the company, with accounts receivable and accounts payable, does not operate in a vacuum. Their business model relies heavily on contracting out preliminary protototyping, engineering, design, testing, validation, and certification processes. Plus like any automotive "like" manufacturer, they rely heavily on suppliers, who themselves are for-profit enterprises that do not work for free. While we are not privy to any contractual arrangements that involve contractors/suppliers and Elio Motors, it is unlikely that they are accepting IOU's or stock options or deferred reimbursements as forms of payment. They have raw material, time, labor, and overhead costs of their own that require liquid cash compensation for providing, or else they risk their own financial solvency.
So Elio, despite not having an original widget of its own, does generate revenue. Who or what do they then spend their incoming resources on? Aside from the publicly listed salaries of Paul Elio and the company directors - that have garnered criticism from some observers - all of Elio's partners expect to receive payment for services or goods rendered. IAV. Aisin. Linamar. Technosports Creative. Roush Enterprises. Continental. RedDot. The Onion. Oppenheimer. Any and all suppliers listed on Press Releases and/or the Elio Motors website.
While frustration, discontent, angst, and impatience with the delays in production are certainly understandable, if not justifiable, I strongly feel it is unfounded to state there is any sort of fraud, scam, or swindling taking place. If there were, then all-in reservationists with $1,000 at stake are a pittance compared to what Aisin bills for transmissions, or IAV for engine development and prototyping, or Linamar for engine sub-assembly line design and tooling, etc. Those players have much more than $1,000 in time and resources involved, and they're not walking away.
Elio Motors, the company, with accounts receivable and accounts payable, does not operate in a vacuum. Their business model relies heavily on contracting out preliminary protototyping, engineering, design, testing, validation, and certification processes. Plus like any automotive "like" manufacturer, they rely heavily on suppliers, who themselves are for-profit enterprises that do not work for free. While we are not privy to any contractual arrangements that involve contractors/suppliers and Elio Motors, it is unlikely that they are accepting IOU's or stock options or deferred reimbursements as forms of payment. They have raw material, time, labor, and overhead costs of their own that require liquid cash compensation for providing, or else they risk their own financial solvency.
So Elio, despite not having an original widget of its own, does generate revenue. Who or what do they then spend their incoming resources on? Aside from the publicly listed salaries of Paul Elio and the company directors - that have garnered criticism from some observers - all of Elio's partners expect to receive payment for services or goods rendered. IAV. Aisin. Linamar. Technosports Creative. Roush Enterprises. Continental. RedDot. The Onion. Oppenheimer. Any and all suppliers listed on Press Releases and/or the Elio Motors website.
While frustration, discontent, angst, and impatience with the delays in production are certainly understandable, if not justifiable, I strongly feel it is unfounded to state there is any sort of fraud, scam, or swindling taking place. If there were, then all-in reservationists with $1,000 at stake are a pittance compared to what Aisin bills for transmissions, or IAV for engine development and prototyping, or Linamar for engine sub-assembly line design and tooling, etc. Those players have much more than $1,000 in time and resources involved, and they're not walking away.
