250,000 Units Per Year ?

[wayne kemp]

"He has stated "from his mouth" that if they went on sale today it would be 7300,'

Then someone needs to tell him to STOP saying $6800.00 when he's on TV.
Both side of the mouth won't get it today.

 

[Truett Collins]

"He has stated "from his mouth" that if they went on sale today it would be 7300,'

Then someone needs to tell him to STOP saying $6800.00 when he's on TV.
Both side of the mouth won't get it today.

It is still his goal to reach 6800 and I for one believe he will........you see there in lies the difference, I am a glass half full kind while you appear to be a glass half empty.....

 

[goofyone]

I think he'll take a financial hit just to deliver the car to the reservation holders at $6,800. That way he'll save face.

I don't think he'll hit the 84 mpg mark myself.

I agree with you about the price in terms of there being a good likelihood EM will sell these things at a very low base margin to reservation holders just to keep $6,800 price. The good news is that as far as I am aware EM's goal is still $1K margin per base vehicle so EM breaks even for $1K all-in people with the 50% match even if the price should be $7300. That number also includes estimated costs of running the stores and such which will not actually exist when the reservation vehicles are being produced so this adds to the margin they can spare on the first year vehicles. Once the retail stores open I can easily see the base price jumping to the $7500-$8000 range.

I believe many people will be shocked at the final fuel mileage numbers. From the independent calculations I have seen 80+ mpg should not be difficult and 84 MPG is a possibility just depending on exactly how the engine performs and the exact final aerodynamics.

Personally I believe it is entirely realistic to see this vehicle hit the retail stores for $8000 or less and with 80+ MPG. Even if the numbers are exactly 80 MPG for $8000 those numbers will still be much better than anything else on the road in this country.

 

[wayne kemp]

If the ones with a deposit up now have to pay 8k you will see Elio fold due to false advertising. Sales will hit bottom.
People don't like to be lied too.

 

[LockMD]

If the ones with a deposit up now have to pay 8k you will see Elio fold due to false advertising. Sales will hit bottom.
People don't like to be lied too.

Argh! so negative I've seen you be positive or on the fence before. Is this a self protection thing........expect the worse hope for the best so if it turns out bad you won't be too shocked, but ecstatic if it does? (just curious not meant to come off as an attack)

 

[wayne kemp]

Argh! so negative I've seen you be positive or on the fence before. Is this a self protection thing........expect the worse hope for the best so if it turns out bad you won't be too shocked, but ecstatic if it does? (just curious not meant to come off as an attack)

LOL........You will see if people have to pay 8K after being told 100's of times $6800.
I think Paul is smarter than that to let that happen. Right now he is a trusted man and for the good of Elio Motors he will have to stay trusted.
I can see the price going up once production has gone a year or so but the price will be announced first and with no surprises.
It's just good business.

 

[Ty]

LOL........You will see if people have to pay 8K after being told 100's of times $6800.
I think Paul is smarter than that to let that happen. Right now he is a trusted man and for the good of Elio Motors he will have to stay trusted.
I can see the price going up once production has gone a year or so but the price will be announced first and with no surprises.
It's just good business.

I can see a scenario where Elio is close to their stated production price and eat the cost difference for the reservationists as long as they don't dip too far into their profit per vehicle. Say they do get the cost down to $7,500 per vehicle with $1,000 profit in there. They already lose $500 of that matching our $1,000 all-in reservations which only leaves them $500 to profit. If they sold them at cost as a good will jester (or to ensure we continue to support them and are happy so we keep advertising free), the car would then be at $7,000. Most people will get a few options added on and with a little creative accounting, the base car could still be $6,800 but the accessories would then make up the difference. It's doubtful that Elio could manage that because without profit, they'd be relying on green credit sales to carry them through that first year. At full tilt, they COULD build about 500/day on one line which means that the "no-profit" time period would be about 6 months. Which, if they do like most manufacturers, could carry them far enough into 2016 to introduce the "New, 2017 Elio with larger trunk, improved aerodynamics, automatic remote latte maker, only $7,650* ". The "first year" production could be however long it takes to build all the reserved cars. Anyway, sorry I rambled...

 

[goofyone]

I can see a scenario where Elio is close to their stated production price and eat the cost difference for the reservationists as long as they don't dip too far into their profit per vehicle. Say they do get the cost down to $7,500 per vehicle with $1,000 profit in there. They already lose $500 of that matching our $1,000 all-in reservations which only leaves them $500 to profit. If they sold them at cost as a good will jester (or to ensure we continue to support them and are happy so we keep advertising free), the car would then be at $7,000. Most people will get a few options added on and with a little creative accounting, the base car could still be $6,800 but the accessories would then make up the difference. It's doubtful that Elio could manage that because without profit, they'd be relying on green credit sales to carry them through that first year. At full tilt, they COULD build about 500/day on one line which means that the "no-profit" time period would be about 6 months. Which, if they do like most manufacturers, could carry them far enough into 2016 to introduce the "New, 2017 Elio with larger trunk, improved aerodynamics, automatic remote latte maker, only $7,650* ". The "first year" production could be however long it takes to build all the reserved cars. Anyway, sorry I rambled...

I do have to make a little correction as the full $500 subsidy only applies to All-In $1K's before September 2nd which is only about 11,000 vehicles. So if EM can manage to break even on these at $6800 then every other first year vehicle will have at least some margin and the no-profit time period would likely be under 3 months.

 

[JEBar]

The good news is that as far as I am aware EM's goal is still $1K margin per base vehicle

$250,000 vehicles per year at a profit of $1,000 per vehicle = $250,000,000 profit per year ...

Jim

 

[goofyone]

$250,000 vehicles per year at a profit of $1,000 per vehicle = $250,000,000 profit per year ...

Jim

That does not even account for the profit from options, accessories, and replacement panels and such!

I do believe Paul Elio has a pretty good idea going, we just all hope he can push this project over that finish line and actually start generating that profit for his investors and himself.