Elio Motors @ New York Auto Show 2015

[pistonboy]

The media keeps saying EM needs to borrow $230 million. A while back, this did not make sense to me and goofyone posted this information:


"How much money needed:
The media has finally corrected the $240 million misinformation they had put out earlier. The total cost of the project is $240 million however the amount EM still needs to raise is $175 million. The used equipment EM is selling right now is expected to bring in $100-$120 million so what EM actually needs to raise is only about $75 million.
The truth is that EM's financial situation is not nearly as dire as some are trying to present it. Even without the ATVM loan all EM must do is sell off the used equipment and raise about $75 million via private investment over the next year and they will have all the money they need for volume production of this vehicle. EM's sales broker has already begun selling and advertising this investment opportunity to potential investors."


Over all only $75 million is needed but because it is not known when the equipment sales will complete, the ATVM lone is for $185 Million so all the necessary money will be available immediately.

However the media keeps saying EM still needs to borrow $230 million. Paul Elio needs to use the NY auto show opportunity to clear this up. If people hear $75 Million or $175 Million are needed, they will think it is more doable than if they hear $230 million, and thus will be more incline to invest.

Does Paul Elio use this opportunity to clarify this? Noooooo. He uses the opportunity to talk about Sony Walkmans!

 

[goofyone]

The media keeps saying EM needs to borrow $230 million. A while back, this did not make sense to me and goofyone posted this information:

"How much money needed:
The media has finally corrected the $240 million misinformation they had put out earlier. The total cost of the project is $240 million however the amount EM still needs to raise is $175 million. The used equipment EM is selling right now is expected to bring in $100-$120 million so what EM actually needs to raise is only about $75 million.
The truth is that EM's financial situation is not nearly as dire as some are trying to present it. Even without the ATVM loan all EM must do is sell off the used equipment and raise about $75 million via private investment over the next year and they will have all the money they need for volume production of this vehicle. EM's sales broker has already begun selling and advertising this investment opportunity to potential investors."

Over all only $75 million is needed but because it is not known when the equipment sales will complete, the ATVM lone is for $185 Million so all the necessary money will be available immediately.

However the media keeps saying EM still needs to borrow $230 million. Paul Elio needs to use the NY auto show opportunity to clear this up. If people hear $75 Million or $175 Million are needed, they will think it is more doable than if they hear $230 million, and thus will be more incline to invest.

Does Paul Elio use this opportunity to clarify this? Noooooo. He uses the opportunity to talk about Sony Walkmans!

Instead of getting into large and/or confusing dollar amounts I wish EM would emphasize that what they need now is $30 million from the current round of funding to get all the vehicle testing completed and have a fully developed production ready product. $30 million is the important number at this time with the larger number needed for production being a future goal.

 

[pistonboy]

Instead of getting into large and/or confusing dollar amounts I wish EM would emphasize that what they need now is $30 million from the current round of funding to get all the vehicle testing completed and have a fully developed production ready product. $30 million is the important number at this time with the larger number needed for production being a future goal.

That is a good way of saying it.

I was thinking of saying they need $75 million plus a temporary $100 million.

I believe it would be good to say it your way and work in the word "temporary" when referring to the larger production number showing their financial situation is actually better than portrayed.

 

[Rickb]

I disagree. I think Paul himself speaking is great and is good for the company. Serious investors will crunch the numbers and if they are not able too, will have there advisers crunch them and recommend what to do. Paul not being afraid to answer questions and provide honest feedback would be plus for me in additional to the financial information. I think due to politicians only reading prepared speeches due to they are scared they might say the wrong thing and offend someone has got us all afraid of anyone speaking freely anymore. Paul might fart, which would cause someone that was going to invest 10 million not too, etc. But if he only reads prepared statements or has someone else do the talking, it would seem he isn't serious about his project and has something to hide.

And as a plus, gives us reservation holders better information then the marketing website.

Two kinds of business personalities in the world: the likeable kind I want to have coffee with and talk BS about the Elio that's Paul Elio. I feel I could invite PE for a backyard BBQ.
2. The kind that appeal to the rich and famous with a knack for fundraising that radiate confidence and getting shit done, that's Elon Musk. NO backyard BBQ for him.

In a startup business situation I'd take the Elon Musk personality any day, no need to socialize with the guy, just get some money and get it done. It's kind of confident personality that gets the folks with the money excited to crunch the numbers.

We need a hybrid version of the two personalities promoting EM's PR and funding efforts. I didn't say the likeable Paul Elio should disappear. He should be at events to answer any engineering questions, but let the hot shot, smooth, marketing personality cater to the venture capitalist needs wants, and desires that gets their checkbook open.

It's ok if Paul Elio reads truthfull stuff he prepares and believes in. Elio ended his presentation with, "that's all I have prepared". It didn't seem prepared to me. It needed to be a marketing home run hit, out of the convention center ball park at this point in the ball game.

What will be a head turner for a big future investor is the newly styled EP5 with the roar of the new engine. At that point it looks like a sure thing investment opportunity. Maybe next year.

 

[pistonboy]

How about Paul Elio talking but first being thoroughly taught by a good PR person on what to say, what not to say, and how to say it.

 

[Kuda]

Snipped: We need a hybrid version of the two personalities promoting EM's PR and funding efforts.

I get the perpetual 'Starbucks' I really do, but I'd cut down to a 'Tall' before any public speaking.......

 

[Thomas Maule]

The media keeps saying EM needs to borrow $230 million. A while back, this did not make sense to me and goofyone posted this information:


"How much money needed:
The media has finally corrected the $240 million misinformation they had put out earlier. The total cost of the project is $240 million however the amount EM still needs to raise is $175 million. The used equipment EM is selling right now is expected to bring in $100-$120 million so what EM actually needs to raise is only about $75 million.
The truth is that EM's financial situation is not nearly as dire as some are trying to present it. Even without the ATVM loan all EM must do is sell off the used equipment and raise about $75 million via private investment over the next year and they will have all the money they need for volume production of this vehicle. EM's sales broker has already begun selling and advertising this investment opportunity to potential investors."


Over all only $75 million is needed but because it is not known when the equipment sales will complete, the ATVM lone is for $185 Million so all the necessary money will be available immediately.

However the media keeps saying EM still needs to borrow $230 million. Paul Elio needs to use the NY auto show opportunity to clear this up. If people hear $75 Million or $175 Million are needed, they will think it is more doable than if they hear $230 million, and thus will be more incline to invest.

Does Paul Elio use this opportunity to clarify this? Noooooo. He uses the opportunity to talk about Sony Walkmans!

I agree with everything you have said here except the walkman comment. I think the Walkman is a great analogy and will really help to sell this to investors.

 

[Rickb]

How about Paul Elio talking but first being thoroughly taught by a good PR person on what to say, what not to say, and how to say it.

That's a good idea, but I think that mover and shaker mentality/personality is a natural 'quality' not so much learned. If he was even open ro the idea he may have to hire a styist as well. Paul is pretty ruffled, which is what I like about him along with 40,000 + other resevationists, but we need to snag a big investor. That strategy may be too late.

 

[Ekh]

I think you have it wrong. I think (and therefor I'm right... I think that's how that goes) that Paul believes that once they start producing the Elio, for the first year or 250,000 as he said, they'll sell every car they can produce. That makes sense. It does NOT, however, make sense to think Paul would believe he'd suddenly get 210,000 NEW reservations before ever producing a car.

In another interview, he said "We won't need stores at first. There is no reason to put effort in that direction for at least the first year." No, I don't remember which interview. No, I'm not supplying the link. Someone here will back this up though.

I am certain he meant that by the time they start production, the first year's output of 250,000 cars will have been ordered. While that's going on, they will have the revenue to get the stores operating.

Paul is going to have to delegate some of this. No way round it, the company is going to have to hire senior people and a host of associates. But none of that can happen til there's enough money to get into production.

 

[Ekh]

Another interesting development to consider is that there are some big changes coming to securities, in just 60 days, which change the way small companies raise money so EM may not be planning for a public IPO just yet and could instead be planning to take advantage of these changes in law which are on the way. A public IPO comes with a lot of regulations and strings attaches so I do not believe it would make sense for a company, such as EM, which does not even have a product for sale just yet to do a traditional IPO.

The new SEC regulations, going live in about 60 days, are related to Title IV of the JOBS Act and are actually over due. These rules seriously expand how EM can raise money as they specifically allow for directly investing in companies via equity crowdfunding from non-accredited investors and allow small businesses to raise raise up to $50,000,000 each year, from both accredited and non-accredited investors, before big time SEC reporting rules become necessary.

http://www.forbes.com/sites/chanceb...s-equity-crowdfunding-with-jobs-act-title-iv/

IPOs require balance sheets and income to qualify for even the OTC market, let alone one of the primary markets. Elio doesn't qualify at this time, period, full stop.