Exciting News - Sec Resubmission

[Coss]

Throw it away when the gas tank is empty?

Nope, they'll do it like the propane tanks; bring in an empty, grab a full one.
No danger of spilling when filling up; racing it, the pit stops would be a breeze; give tanks of fuel coupons as gift certificates; store a few for when the zombies start surrounding the encampment, ............

 

[pistonboy]

On page 25 of the revised SEC document, it says that "EPA/CARB certification complete" will happen during month 14. Is this motorcycle requirements they must meet at the federal and California levels?

 

[Rickb]

On page 25 of the revised SEC document, it spells out allocation of money to be spent during the 15 month period. Included is $6,450,000 for advertising.

Why? I would think they would advertise to the general public when they have something to sell to the general public, and that will not be until the reservations are filled, which will be 5 to 6 months after production begins. This money is to be spent during the 15 month period. Who are they targeting?

Pistonboy, good question! The $6,450,000 is no doubt for in house advertising to support Team Elio and the P5 Tour Schedule. It's not a good allocation of the minimal crowdsource funding being solicited to get the Elio to production, but good for EM. You are spot on in saying that It would be better business practice to earmark funding for advertising when there is a product consumers can actually buy and use the Crowdsource investor funds for production goals, not marketing.

In reality since 2008 most if not all of the money spent to date has been for marketing and 4 prototype builds.

 

[BlioKart]

On page 25 of the revised SEC document, it says that "EPA/CARB certification complete" will happen during month 14. Is this motorcycle requirements they must meet at the federal and California levels?

Yes it is http://www3.epa.gov/otaq/roadbike.htm

 

[Muzhik]

On page 25 of the revised SEC document, it spells out allocation of money to be spent during the 15 month period. Included is $6,450,000 for advertising.

Why? I would think they would advertise to the general public when they have something to sell to the general public, and that will not be until the reservations are filled, which will be 5 to 6 months after production begins. This money is to be spent during the 15 month period. Who are they targeting?

Simple: They're targeting you, me, and anyone else that Google Adsense senses that you might be interested in something like the Elio, and throws one of the ads in its cache into the webpage you're viewing. How do you think I found out about the car and about this forum? They may expand or extend the demographic parameters a bit -- start advertising on websites that cater to single women, DEFINITELY hit the web sites that cater to high-schoolers and college students.

Think of it like the iPhone: how many people camp out in front of the store to get the newest, latest, and greatest even if the reviewers say "meh." They don't do that by waiting until the actual new iPhone is in the stores before advertising it.

(I've never understood that "camping out" bit for an iPhone. Now if it involved camping out for something important, like REO Speedwagon tickets, yeah, I can see that. But an iPhone?)

 

[slinches]

The point of advertising is to expand awareness and the size of the reservation list and therefore increase the likelihood of securing the production funding. Advertising acts to facilitate a feedback loop of interest and funding that, if effective enough, can get a new product into production. I don't begrudge them using my investment funds for any advertising spending EM thinks is best. It should only improve the chances of success, eventually getting me an Elio in my driveway and a positive return on my investment.

 

[wheaters]

Not sure all the funds raised so far will have gone on marketing and prototypes.

Those directly involved will be on a salary, won't they?
Not benefits or "charitable donations".....or are they?
Those T shirts are looking more expensive every day....

 

[Bilbo B]

On page 21 of the revised offering they state they've spent $5.7 Million in 2014 and $6.9 Million in 2013 on "engineering, research and development activities". So not all the money has been for the tour and Prototypes (unless the P3 and P4 are in those costs, which is quite possible).

 

[Rickb]

Not sure all the funds raised so far will have gone on marketing and prototypes.

Those directly involved will be on a salary, won't they?
Not benefits or "charitable donations".....or are they?
Those T shirts are looking more expensive every day....

Exactly my point on all funding to date (to include P builds) has gone to marketing. Elio Motors is a Marketing Company receiving marketing funds for the daily marketing operation since there is no product to sell.

 

[JEBar]

Exactly my point on all funding to date (to include P builds) has gone to marketing. Elio Motors is a Marketing Company receiving marketing funds for the daily marketing operation since there is no product to sell.

OK, if all the money they have taken in has gone into marketing, who is funding things like :

designing and building their own motor

legislative efforts on the national level and in all 50 states

initial engineering and design of the P series

the ongoing engineering/design refinements/of the P series

legal fees fighting a legal battle against a person trying to kill the company

legal fees associated every aspect of the project from day one

building a supplier network

etc, etc, etc

in short, much more than marketing has been and continues to take place