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When - Really?

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raptor213

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Call me a skeptic, but the timing could not be more impeccable. It's mid-April. Everything that's been swirling around Elio Motors is about to come crashing down all at once in spectacular fashion:

-- annual shareholders meeting should be scheduled for mid-May based on past trends;
-- SEC report for fiscal period ending 12/31/2018 is due for public release in the coming weeks;
-- 60-day grace period instituted by Louisiana Court of Appeals for acquiring necessary recreational vehicle manufacturer/dealer licenses or else pay imposed daily fines is approaching;
-- Patrick Byrne reportedly delayed launch of first coin offerings on his tZero platform until further notice;
-- a cursory perusal of past SEC reports reveals that in the months of March, April, and May of each year is when Paul Elio is faced with the task of renegotiating his way out of paying all of his creditors, either forbearing, deferring, capitalizing, or otherwise restructuring his debt obligations to RACER Trust, CH Capital Lending, Stuart Lichter personally, among others.

At this stage, based on the fact that existing automakers follow a routine redesign and revamp lifecycle with their products in order to keep them modern, desirable and competitive, I'd expect the Elio vehicle to undergo another iteration. The basic design hasn't been touched, as far as we publicly know, for a number of years, save for decisions regarding routing of exhaust, battery placement, which side features the gas filler, shape of wheel skirts, etc.

But they're back to the drawing board anyway. We've all been complaining about how the design is beyond its prime and is in desperate need of a refresh. It'd certainly be refreshing to see an Elio 2.0 unveiled, with more modern styling, the new power train packaged together, all of the reported enhancements and design modifications addressed, and perhaps some modern safety features and creature comforts comparable to what's becoming standard equipment in legitimate passenger vehicles today.
 

RUCRAYZE

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Call me a skeptic, but the timing could not be more impeccable. It's mid-April. Everything that's been swirling around Elio Motors is about to come crashing down all at once in spectacular fashion:

-- annual shareholders meeting should be scheduled for mid-May based on past trends;
-- SEC report for fiscal period ending 12/31/2018 is due for public release in the coming weeks;
-- 60-day grace period instituted by Louisiana Court of Appeals for acquiring necessary recreational vehicle manufacturer/dealer licenses or else pay imposed daily fines is approaching;
-- Patrick Byrne reportedly delayed launch of first coin offerings on his tZero platform until further notice;
-- a cursory perusal of past SEC reports reveals that in the months of March, April, and May of each year is when Paul Elio is faced with the task of renegotiating his way out of paying all of his creditors, either forbearing, deferring, capitalizing, or otherwise restructuring his debt obligations to RACER Trust, CH Capital Lending, Stuart Lichter personally, among others.

At this stage, based on the fact that existing automakers follow a routine redesign and revamp lifecycle with their products in order to keep them modern, desirable and competitive, I'd expect the Elio vehicle to undergo another iteration. The basic design hasn't been touched, as far as we publicly know, for a number of years, save for decisions regarding routing of exhaust, battery placement, which side features the gas filler, shape of wheel skirts, etc.

But they're back to the drawing board anyway. We've all been complaining about how the design is beyond its prime and is in desperate need of a refresh. It'd certainly be refreshing to see an Elio 2.0 unveiled, with more modern styling, the new power train packaged together, all of the reported enhancements and design modifications addressed, and perhaps some modern safety features and creature comforts comparable to what's becoming standard equipment in legitimate passenger vehicles today.
Well, you asked- I'll call you a skeptic?
 

Elio Amazed

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OK, first, Paul is alive. Second. The prototype is still running. Third. No mention of financial aid. Fourth. Elio could sell off more equipment from the Louisiana plant and move production to another state. Fifth. They still couldn't sell it in Ohio directly because of franchise laws.
Still, something may come of it. Perhaps I got a little hope back? We will see.
Nope. Most of the equipment that was sold to Elio that is not needed for production has already been sold for pennies on the dollar. They actually lost a significant amount of money on that deal. Throwing in the penalties and whopping interest on the $25M loan, they lost a LOT of money on it. And no-one seems to want the rest. If that weren't the case, every last piece of equipment not needed for production would have been gone by now. Apparently the governor of Ohio hasn't read Elio Motor's SEC reports.
 
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Elio Amazed

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I think it's a brilliant move! Amazon does that when they try to build a new headquarters... eventually, cities are pitted against one another till they start offering tax incentives, seed money, whatever. Louisiana has money to get things started as is evident by the way they bought the plant in the first place. Perhaps Ohio will offer some kind of incentive to get Elio (A-lio, apparently) to move into town. It may not be a guarantee of Elio success but it's one hell of a lot better than what we've been hearing from Elio. I'm a little disappointed that we heard it from a link here first before Elio told us though.

It's also pretty good to see Elio in the news in a positive light. that won't hurt any kind of financing deal. Seeing the Elio up in Ohio with Paul and talks of using a factory up there shows that Paul hasn't thrown in the towel just yet and THAT is indeed a VERY GOOD thing!
Comparing Amazon to Elio Motors...
 

RSchneider

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Nope. Most of the equipment that was sold to Elio that is not needed for production has already been sold for pennies on the dollar. They actually lost a significant amount of money on that deal. Throwing in the penalties and whopping interest on the $25M loan, they lost a LOT of money on it. And no-one seems to want the rest. If that weren't the case, every last piece of equipment not needed for production would have been gone by now. Apparently the governor of Ohio hasn't read Elio Motor's SEC reports.
Elio bought that equipment for pennies on the dollar but the reality is, it was only worth that anyway. For tax purposes, you overvalue the equipment then take the depreciation over the next few years. It's just being smart with taxes and keep you from paying full boat. Even at that they only sold around $2M of the equipment and that's it. they only have a few hundred grand still up for sale. At this point, it just peanuts.

If I was Elio, I'd go bankrupt. Then they can walk away from that loan and the other mess they are in. Create a new company and get OH to fund part of the purchase of the equipment for the equipment in the Lordsville plant. That way, Elio 2.0 gets a fresh start and it makes the company look 1000% better for investors. Elio just needs to manipulate the system to get this to work and with OH being desperate for getting that plant going again, use that to your advantage. Elections are coming up in 2020 and if you can get Elio in there with the OH taxpayers footing most of the bill, it will result in jobs that are needed right now.

This is a win win situation for OH and the 65K reservation holders. Just do whatever you got to do to get Elio in production.
 

Ty

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Comparing Amazon to Elio Motors...
Amazon to Elio? Not even close. I WAS, however, comparing the tactics of them. I would also suggest that Elio follow Amazon's tactics at least as far as getting cities to offer something to move in. I mean, come on, Shreveport fined Elio for not having a manufacture license before they even produced anything. "Welcome to our city. We can't wait for you to start producing cars and hire a bunch of our citizens in this piss poor part of the country. As a thank you, please accept this fine."

Amazon: Hi, there. We are thinking about building a new HQ. "We'll give you billions in tax breaks. Please come work here."

Hmm... big difference there. If Elio could just get any kind of incentives, it would show up on a future balance sheet and make Elio look much more attractive to potential investors.
 

Ty

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Elio bought that equipment for pennies on the dollar but the reality is, it was only worth that anyway. For tax purposes, you overvalue the equipment then take the depreciation over the next few years. It's just being smart with taxes and keep you from paying full boat. Even at that they only sold around $2M of the equipment and that's it. they only have a few hundred grand still up for sale. At this point, it just peanuts.

If I was Elio, I'd go bankrupt. Then they can walk away from that loan and the other mess they are in. Create a new company and get OH to fund part of the purchase of the equipment for the equipment in the Lordsville plant. That way, Elio 2.0 gets a fresh start and it makes the company look 1000% better for investors. Elio just needs to manipulate the system to get this to work and with OH being desperate for getting that plant going again, use that to your advantage. Elections are coming up in 2020 and if you can get Elio in there with the OH taxpayers footing most of the bill, it will result in jobs that are needed right now.

This is a win win situation for OH and the 65K reservation holders. Just do whatever you got to do to get Elio in production.
I was actually surprised that the Caddo Parish didn't put some money into the Elio venture to get them producing. It seems to me that had gone all-in with some interest-free loans (even if there were stipulations that it be spent there in Caddo), we'd be driving Elios by now.
 

RSchneider

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I was actually surprised that the Caddo Parish didn't put some money into the Elio venture to get them producing. It seems to me that had gone all-in with some interest-free loans (even if there were stipulations that it be spent there in Caddo), we'd be driving Elios by now.
Back in Decenber of 2012, it was a priority 1 to get that plant back up and running. As of today, I don't think they care because it's been so ling. With Ohio, it's a priority 1 to get that plant up and running. So, Elio needs to leverage that as much as they can. This is because they learned from Pontiac, MI and Shreveport , LA. So now they have the experience to make this work without having a deal that makes them liable. This is what you do in business. Learn from your mistakes and capitalize on others that are desperate. This is where Elio has the upper hand and can make this into a positive as opposed to the current negative.
 

airforceguy6

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For those who saw the "Building in Ohio" article...
Screenshot_20190419-164035.png
 
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