Anyone Else Think It Wont Happen?

[goofyone]

The operative word being "truthfully".

I have yet to see any evidence of lying. Accusing PE and EM of lying about funding and/or possible production dates really does not mean much without evidence.

We all know circumstances change and funding which was thought to be committed may not be there forever so there are plenty of perfectly valid reasons why these statements would need to change over time. Much of this information is also highly confidential and not able to be discussed publicly. Along with that publicly shaming your investors, even if no name is used, is also not exactly a smart move for a company seeking new investors. Investors are the life blood of a start-up so it is in EM's best interest to fully honor their commitments to their investors and to keep negative comments about investors private even if an investor may have really screwed them over.

As for the production timeline, everything I know says this vehicle could actually still be built this year if development money begins showing up in the next couple of weeks and the production funding begins showing up in the next couple of months. While I doubt EM will push this hard, as they have now bought more time with the plant extension and don't necessarily have to rush, as long as they have running engines about four months from now they can still have six months of testing under their belt before entering production in the 4th quarter and during this same six month testing time period they can likely get the plant online and be ready for production as Comau has already mapped out what needs to be done.

 

[tonyspumoni]

Elio Motors is not working on an IPO but instead what they are doing is a 'private placement' or private stock offering. In some ways they are similar, as they both involve selling equity positions in the company for cash, however the private placement is much less expensive and much less regulated as it is mostly a matter of whatever can be negotiated between the parties.

A private placement has been a part of EM's funding strategy all along and this is not even EM's first attempt at a private placement. If you search the forum you will find it mentioned up to a year ago however the last one collapsed due to the protracted problems with securing the Shreveport plant. If you read what EM says about how long this current private placement has been in the works you will find this process has actually been under way for months now. EM has already told us that Corporate Fuels did 90 days of due diligence and preparation before offering the placement publicly this month and I am sure there was a period of time for EM to decide on Corporate Fuels and negotiate with them before that.

Goofyone,

Strategy is what happens before the battle begins and tactics what comes after. Elio Motors is at a point of seeming existential threat. They need cash and soon. They will thus be considering all options, regardless of whether those options were part of their original plan. Private capital is what they want, preferably atop a nice bank loan guaranteed by DoE, but what they get is what money is willing to give them. Paul has his name slapped all over this effort, so if he is compelled by forces beyond his control to choose between private capital and losing control or trying an IPO and keeping it, he will absolutely explore that option. It isn't the best one and not the one they like - we agree on that - but it is an option.

 

[CompTrex]

I have yet to see any evidence of lying.[snip]

The one thing that comes close is on Monday saying "we're on track to begin production in 2015", then on Tuesday, push off until 2016. I can't believe that on Monday, they didn't know what was going to happen on Tuesday.
That being said, I don't necessarily fault them for this, as this is a part of business, but if we want to call out what may be a lie, this is it.

 

[Jim H]

Yes. And actually had it... but then there is something unexpected occurs. I have had money with plans and then a car issue happened or house appliance broke. Then the money wasn't available for use.

I do not know what occurred to have Paul change his tune. I am aware of what was said also. I don't believe it was to cheat us Elio autocycle fans. Maybe the engine development cost more or the $25,000 per month for the Shreveport facility on top of the development. Or maybe the extension cost. Or was there another cost that wasn't disclosed or new equipment that was needed and not anticipated. I don't know. All we can see is there was a delay.

You mean ANOTHER delay.

 

[JEBar]

The one thing that comes close is on Monday saying "we're on track to begin production in 2015", then on Tuesday, push off until 2016. I can't believe that on Monday, they didn't know what was going to happen on Tuesday.
That being said, I don't necessarily fault them for this, as this is a part of business, but if we want to call out what may be a lie, this is it.

the fact that, for whatever reason, no explanation was provided for such a major change can't help but giver rise to questions of credibility

 

[goofyone]

The one thing that comes close is on Monday saying "we're on track to begin production in 2015", then on Tuesday, push off until 2016. I can't believe that on Monday, they didn't know what was going to happen on Tuesday.
That being said, I don't necessarily fault them for this, as this is a part of business, but if we want to call out what may be a lie, this is it.

However it was not really one day to the next as CES happened a week before the Caddo Parrish meeting and from what was said in Caddo Parrish and the Town Hall we know that between those two events all the senior management met and there was an EM board meeting. So while their was a possibility of the change in date happening it was not likely actually decided on until those meetings. Also see my above comment about production as what changed was the target was extended and not necessarily what is possible depending on funding.

 

[goofyone]

the fact that, for whatever reason, no explanation was provided for such a major change can't help but giver rise to questions of credibility

Yes it unfortunately does. Even if EM is not lying and something changed that they can not, or should not, discuss this leaves them stuck between a rock and a hard place. This is just the way things go at times.

 

[eddie66]

Yes it unfortunately does. Even if EM is not lying and something changed that they can not, or should not, discuss this leaves them stuck between a rock and a hard place. This is just the way things go at times.

Kinda like us, between the rock and the hard place. Still a fan, but shine has tarnished a bit.

 

[John Painter]

Kinda like us, between the rock and the hard place. Still a fan, but shine has tarnished a bit.

I'm curious how people who went "all in" interpreted the level of risk with the adventure otherwise known as Elio. Did/do people expect the process of Elio getting off the ground to be like waiting for the new iPhone 7, or that there's a more significant gamble with a new company getting their product off the ground. Just curious.

 

[eddie66]

I'm curious how people who went "all in" interpreted the level of risk with the adventure otherwise known as Elio. Did/do people expect the process of Elio getting off the ground to be like waiting for the new iPhone 7, or that there's a more significant gamble with a new company getting their product off the ground. Just curious.

Most of us based our decision on information being provided, and assumed it was factual. I'm not so sure the results would be the same with the information being currently provided. My personal opinion is there would be more "want in" reservations than "all in" nonrefundable reservations if the information of the financing and anticipated delays where available. I personally would not have pulled the trigger as fast as I did, with the currently available information. Doesn't mean I have changed my mind, but now that all the real world facts have come out, it does give one reason for pause. The gambler in me probably would have gone all in eventually, but that was when I was thinking I would be driving the thing by the end of this year.