100 Preproduction Elio's To Be Built In December!!

[Rickb]

I think this is great news. Personally I don't want to be a beta tester.

A couple days ago all the reservationists were going to be beta testers.

 

[Trusting]

Somehow, this seems the time to repost this...

 

[Elio Amazed]

What gets me is the wording saying they need to sell the 100 for the revenue. Maybe it was just odd wording, but the profit from selling just 100 is so small compared to the stock sale. I like the idea of have 100 beta units in the wild, just smells funny selling them.

Unless they are being sold for WAY over $7k.

I wonder if Roush insisted on 100 E-series instead of 25, needing the higher number of units to get the tuning down?

And no crash testing before production?

Hmmm.
Let's see...
Let's say it's going to cost just $60,000 per unit to build these.
Let's say they sell for $20,000 each (collectables).

Explain to me how this increases revenue.

Must be the new PE math.

Also...

If I'm reading this right, the e-series is now kaput...
And there's not going to be jack sh*t built or tested until Q4.

Maybe I need to apply the new math to that too.

 

[Elio Amazed]

Maybe the DoE people have caved in on their requirement for a complete engineering test run before they grant the loan? I don't know.

Seriously doubt it.

 

[Elio Amazed]

Conspiracy Theory Alert:

What if EM used the P5 to complete the testing required to meet the DOE loan requirements and are closer to approval than we think??

Again...
Seriously doubt it.

 

[Elio Amazed]

The tests EM needs to conduct to satisfy DoE will require more than one sacrificial vehicle. Paying back the loan as DoE requires, will take demonstrating the ability to generate revenue from sales, 100 vehicles to start, will nicely do.

All a continuing part of due diligence.

 

[Elio Amazed]

While this probably isn't the Fleet customer, it would be nice if it were Pep Boys so they would be getting first hand experience with the potential repair issues before regular production begins.

If you're talking about giving the Pep Boys "engineers" and knuckle-busters training and experience during these phases, then no.

Why waste the time and money on expensive training and then expensive re-training?
I'm sure the equipment and the procedures will change as EM gets closer to the production vehicle.

 

[Elio Amazed]

The initial plan would have produced no revenue at all and now it will produce about $680,000 if purchased at the target price. I'm certain the funding is not from profit, but from receiving funds for vehicles which would not have produced revenue at all.

I suspect neither scenario indicates a profit on these vehicles will occur. They are loss leaders and part of the development cost.

I think they can use the time to work out production kinks prior to hiring the regular production workers. I also suspect this build will be simultaneous with the E-Series build or at least overlap it.

I also think they are working out ways to shorten the critical path by parallel, rather than sequential testing.

By $680,000, are you suggesting that EM will get the parts for free?

 

[Elio Amazed]

You as a "purchaser" are representing your company (if this is what you do) rather than a consumer (see above definition). Even though you may "consume" items purchased by and for your company... it is again, by definition for your company and its for business activities. You as an employee consume items as you perform activities you were hired to do. This is not for freely open "personal use" by grabbing a few roles of toilet paper to "consume" at home. I would think your company would frown on this.

So save your money and use the toilet paper at work.

Technicalities and trivialities.
You guys really need to get a room.

 

[Elio Amazed]

No-where does anything say that these 100 pre-productions are already SOLD!
The article says, "We now intend to sell the first 100 pre-production vehicles built..."

Uh, OK. And I'm supposed to be impressed why?

According to the SEC filing, they said they were going to build an unspecified # of these anyway.

I'm truely sorry to say that I think everyone can safely stand down now.
Admirable diversion and PR spin on a delay announcement but in reality much to do about nothing.