The entire loan doesn't have to have received guarantees, but enough will need to be shown that the revenue stream is likely to produce sufficient revenue to pay back the loan. That loan is not due on the first year anniversary.So it looks like EM and the ATVM folks have been discussing EM's application. And EM seems to have gotten the impression that full binding commitments at $7000 will satisfy the requirement that the applicant demonstrate the ability to pay back the ATVM loan.
But 65,000 X $1500 (I think this was the projected profit per vehicle) = $97,500,000. The loan application was for $185M. So where is the remaining $87,500,000 coming from? I wonder if EM has some investors willing to co-sign on the loan and would be responsible for making up the gap?
I was actually thinking the projected profit was only about $500 per vehicle which would produce profits of $125,000,000 per year (on gross revenues of $1,750,000,000) when producing the anticipated 250,000 vehicles per year. That is certainly sufficient to pay back the ATVM loan and the supplemental loan required for startup over the first few years.
ps I do not foresee demand for $7,000 vehicles to be a problem in the foreseeable future.
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