Anyone Else Think It Wont Happen?

[harlan stephens]

Like say $1001 ?
Muhahaha

 

[wayne kemp]

Could all in reservationists buy extra t-shirts and re-sell them to anybody at a huge profit margin?

If they sell them to you with no strings attached you can do whatever you want with them. You just can't print them yourself and resale them. Good luck on the profit part. If you could get them at what they pay for them (which is around $5.00 to $6.50 each) you may make a couple bucks.

 

[BaldGuy]

Here is an interesting question. Assume they had all the money they needed at this point. Its only 1 year till they are suppose to start building Elio's. Is a year enough time to go thru all the engineering testing, crash testing and getting it approved by the government, etc?

Years go by awfully fast. (seems faster each year one gets older)

 

[Craig]

Here is an interesting question. Assume they had all the money they needed at this point. Its only 1 year till they are suppose to start building Elio's. Is a year enough time to go thru all the engineering testing, crash testing and getting it approved by the government, etc?

Years go by awfully fast. (seems faster each year one gets older)

Crash testing by the government is not done prior to cars going on sale. They cherry pick off different lots around the U.S. and then test them.

 

[tonyspumoni]

And yet another...lol
Ill get it back on topic and not troll!
Em faces some major chalanges with funding on the government loan program.
And to say funding on a start up of any type is not an issue is absurd.
Some reading on the subject
http://jalopnik.com/56-of-the-carmakers-who-asked-for-government-green-l-510296228

Here is an interesting question. Assume they had all the money they needed at this point. Its only 1 year till they are suppose to start building Elio's. Is a year enough time to go thru all the engineering testing, crash testing and getting it approved by the government, etc?

Years go by awfully fast. (seems faster each year one gets older)

Very apt question, BaldGuy. I actually think one of the more difficult decisions they'll face is whether to rush production in order to meet their own target timelines or take their time and ensure they get it right.

I do not doubt in the least they will secure their startup funds but I share your misgivings regarding EM's Q3, 2015 first-car-first-customer goal. If they do manage to pull it off I'd be very surprised - delighted, but surprised - if the first vehicles did not have major quality control issues. Perhaps someone more familiar with the typical design timeline for vehicles can comment on this.

 

[tonyspumoni]

The other big decision that plays into all of this is The Loan. That loan isn't going to fund in 2014 - they'll be fortunate indeed to get the loan at all and if they do to get it funded in early 2015. If they are to have a chance to meet their production timeline they'll need a cash infusion in 2014. Probably wouldn't need to be all $185M - a really ballpark guess would be $60M in a first tranche (investor speak for "chunk" of capital) - but would need to be enough to (1) get their pre-production work fully funded; (2) hire and begin training key folks at the plant; and (3) convince all the remaining potential pre-IPO capital providers to hop on the train or stay at the station.

It has always been my view - just my opinion of course - that they'll use private equity for the $185M they need and then use the $185M from the loan if it funds to buy that equity back if any of those providers want an early exit.

 

[harlan stephens]

One thing is sure...
Start ups will be over budget, and behind schedule. ..would be the exception otherwise.
I was involved in a 2 mil. Wait 2.5 mil wait 2.7 mil project that just begain cash flowing a year ....wait two years later.

I can only think of one that came in under...in 40 years.
Also the gov. Loan guarantee program has not approved anything since 2011 paul faces serious challenges here. Political black eyes have happened here on this program.
I am sure paul is doing the best he can.
And is one frustrated man.
And 1 year could well be 2 or 3 .
Bad thing is time is not on your side intill products are cash flowing, and bringing money in.

 

[tonyspumoni]

Starting from scratch may be a real advantage for them, though I agree that unless they get a cash infusion in 2014 there is zero chance they get cars out by fall. For a company with existing product lines and production facilities there are always huge compromises to be made to move a new product along. Imagine building a new town on a vacant site - lots of freedom to lay the pipes cheaply. Now imagine having to lay those same pipes in, say, downtown Boston. That's why that damn tunnel system of theirs took so long. It wasn't like they could just roll up in a bunch of trucks and start digging. But EM does have that advantage: one product, one factory, total focus, no distractions.

 

[Dustoff]

One thing is sure...
Start ups will be over budget, and behind schedule. ..would be the exception otherwise.
I was involved in a 2 mil. Wait 2.5 mil wait 2.7 mil project that just begain cash flowing a year ....wait two years later.

I can onky think of one that came in under...in 40 years.
Also the gov. Loan guarantee program has not approved anything since 2011 paul faces serious challenges here. Political black eyes have happened here on this program.
I am sure pual is doing the best he can.
And is one frustrated man.
And 1 year could well be 2 or 3 .
Bad thing is time is not on your side intill products are cash flowing, and bringing money in.

paul and pual, funny

 

[outsydthebox]

Starting from scratch may be a real advantage for them, though I agree that unless they get a cash infusion in 2014 there is zero chance they get cars out by fall. For a company with existing product lines and production facilities there are always huge compromises to be made to move a new product along. Imagine building a new town on a vacant site - lots of freedom to lay the pipes cheaply. Now imagine having to lay those same pipes in, say, downtown Boston. That's why that damn tunnel system of theirs took so long. It wasn't like they could just roll up in a bunch of trucks and start digging. But EM does have that advantage: one product, one factory, total focus, no distractions.

IIRC, they will have a cash infusion from the sale of unneeded equipment. About $70m