Atvm Loan Progress

[pistonboy]

I fear the ATVM loan may not be enough. Just as it is easy to underestimate the time to do something, it is also easy to underestimate the money require to do something.

The number $185 Million is a number from a few years ago. Costs may be a little higher now.

 

[Coss]

I fear the ATVM loan may not be enough. Just as it is easy to underestimate the time to do something, it is also easy to underestimate the money require to do something.

The number $185 Million is a number from a few years ago. Costs may be a little higher now.

But they also have additional funds for the 2 stock sales, plus who knows how much from new vendors in promised discounts, plus the equipment sales and whatever else they have going on. So the $185m is just part of it.

 

[bunchathrees]

And, you all are clearly discounting my willingness to cough up a few more thousand.

 

[John Painter]

But they also have additional funds for the 2 stock sales, plus who knows how much from new vendors in promised discounts, plus the equipment sales and whatever else they have going on. So the $185m is just part of it.

Listen to the ROTH Conference, I'd post the PowerPoint but it was clearly marked against that. At any rate yes, PE describes several ways of getting the capital for production (including of course looking for VC at ROTH), interestingly to me, also a plan to attract a huge number of new reservation holders.

 

[Charles Stanley]

You are not going to find any public information telling the status of the ATVM loan. The ATVM board do not give out that info. I will say this,.... One of the requirements we know of is that the Elio (or any other vehicle being considered for a loan) must get at least 75MPG highway. While the test figures said some time ago that they were at 81.6MPG highway, these numbers must be proven. At the Perry, GA showing of the P5 I heard one of the Elio Employees mention that the wheel cover on the P4 had a small curve at the back where it dropped down the back of the wheel. The P5 does not have that curve. The cover makes a sharp corner where it meets the back side. Wind tunnel testing said that curve on the P4 wheel covers was costing them 1 MPG. The same thing was found about the flairing of the body where the opening for the front suspension is. The P4 had a flaired opening. the P5 does not. Bottom line here is the 25 E vehicles will prove the highway MPG (which can only help the loan process). And Elio is still tweaking everything to improve the MPG.

 

[floydv]

You are not going to find any public information telling the status of the ATVM loan. The ATVM board do not give out that info. I will say this,.... One of the requirements we know of is that the Elio (or any other vehicle being considered for a loan) must get at least 75MPG highway. While the test figures said some time ago that they were at 81.6MPG highway, these numbers must be proven. At the Perry, GA showing of the P5 I heard one of the Elio Employees mention that the wheel cover on the P4 had a small curve at the back where it dropped down the back of the wheel. The P5 does not have that curve. The cover makes a sharp corner where it meets the back side. Wind tunnel testing said that curve on the P4 wheel covers was costing them 1 MPG. The same thing was found about the flairing of the body where the opening for the front suspension is. The P4 had a flaired opening. the P5 does not. Bottom line here is the 25 E vehicles will prove the highway MPG (which can only help the loan process). And Elio is still tweaking everything to improve the MPG.

I would point out that the published ATVM loan application guidelines do not, on their face, explicitly require the demonstration of actual gas mileage. Indeed, it says "achieves" but then clarifies that later by explicitly allowing for the use of acceptable modeling:

1. Qualification [10 CFR 611.101(c)]: A detailed explanation of how the proposed project qualifies under applicable law to receive a loan under 10 CFR 611, including vehicle simulations using industry standard software such as DOE’s Autonomie (previously PSAT) or similar model to show projected fuel economy.
   
   The qualification section should contain a detailed explanation how (i) the vehicle/component satisfies the technical eligibility requirements for ATVs/qualifying components set forth in Section I(1) above and (ii) the applicant satisfies the technical eligibility requirements set forth in Section I(2) above. Information regarding Autonomie can be found at http://www.autonomie.net.
   [Emphasis added.]

http://www.energy.gov/sites/prod/files/2015/02/f19/ATVM_Guidance_for_Applicants_11.4.14.pdf.

So that's the published guideline, which DOE is presumably following since it's their own, unless DOE is requiring Elio Motors to demonstrate actual mpg in private communications with EM. That would not only be inconsistent with their own published guidelines, but it would also arguably be an underground regulation in violation of the Adminstrative Procedure Act, exposing DOE to potential lawsuits.

Note: One potential rub is whether there are "industry accepted modeling" for three wheeled vehicles like the Elio, and Elio used that modeling, or whether Elio's possibly proprietary modeling would fall into the "similar model" clause.

 

[HonestTex]

Posted this in the stock thread (due to thread wonder) from page 4 of the 1-U filed in Feb. 2016
Looks like mpg is good, now to prove they can repay the loan.

Elio Motors has completed the first stage by submitting an application for a loan of approximately $185 million, the proceeds of which would be used to partly fund the purchase of equipment and equipment installation into the Shreveport facility prior to and ramp up after the start of production. As of January 15, 2015, the Department of Energy (DOE) has confirmed that the Company has achieved the technical criteria for the loan. Due diligence has been pending upon the confirmation of the Company’s financial backing, which includes the proceeds from the Regulation A offering.