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Anyone Else Think It Wont Happen?
- Thread starter mumblemouth
- Start date
I'm not 'taking you to task' on this, just wanted to look at the parts and maybe differ in opinion.
Irrelevant is not what I would say across the board. But I can agree that the main focus is not the Paul personality PR, it's now only about investor relations. However, what Paul does and is, what happens with the Engine and the crash testing, yes this still affects investor relations and therefore the viable status of the Elio. So not completely irrelevant. In some ways you could have typified the case as 'the other issues have already been won'. And that IS another form of irrelevant, or as you say, 'idea sold'. I don't think it's as gloomy as all that.
'No money' taken when out of your context, that's not substantiated. Granted, it has always been true, they didn't have enough $$ to produce the first car. They never did. It was a unspoken truth, investment would be needed. But from a PR stand point it's been played down.
From the start what had actually been true is, they have enough money to continue the development, but will need more.
Everybody has big-theories about how far they can go on what they have, but that is secret number2, and always has been.
Secret number1 has always been the risk factor for getting all the funding over time.
Failed? He simply hasn't succeeded yet. I suppose you can say every year the full 240m is not in the account, that's a failed year. But don't think for a second he's quit and failed overall.
I get it, you are simply saying you have no confidence the money will come in from private investment.
You are kind of play negative PR of your own with that statement. The source of information will come from PE and his staff. Yes the public PR will not be a basis for investment, the real prospects of the business plan will. But,
I get it, you are simply saying you have no confidence in the business plan, or rather you think the investors won't.
True, PE has already said last year, there is no redesign. However, that's a bit muddled, because we already know the nose and width at the front is changed, including the headlights. And also the roof over the passenger is roomier.. So in a big way, that IS a P5, or a Year1 as I call it.
Hmm, that's just pessimism. Money has indeed been handed out to individuals like Paul's company. You are welcome to speculation in this area, and that is indeed speculation. But that does have a bit of conspiracy theory to it. And you are welcome to that too.
From this standpoint, Paul is not Paul, it's his company and board of directors that comes into play. IF those people don't know the right people, then maybe your supposition could come into play. Seriously, who do ya 'have to' know.
The gov agency 'invited' Elio motors to resubmit, so obviously some one at least knows EM at the agency.
Well that's more conspiracy theory. But I'm also not qualified to unravel that, but I think it can be debunked.
True, always been true. It's how he got the first $65mil.
Really? Fer-Real? No where near? As based on what? IMHO, That one can be tossed out, no problem.
For how many is 240mil pocket change? Yea sure, the 1%. Political spending has FAR out spend that level of investment.
It's important to note, EM has not been selling the plan for just the car. It's whole package including building a brand and all the other opportunities associated. There is much higher profit in the aftermarket and accessories, even the possibility of a sport-model Elio.
That planning is definitely reserved for the investors eyes only. All I know for sure is it's better than the car by itself.
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In the immortal words of Strother Martin: "What we've got here is failure to communicate"
This is a chicken & egg scenario: Getting the ATVM is predicated on Elio Motors
proving/demonstrating that thay can produce their vehicle to a perceived market.
That means they've got to make the ones they've sold folks................Therein
lies the rub. Get enough $'s to to build the reservationist's Elio's & then you
really are in business. Everything else is vapors. That is why Paul has hired a
bank/investment firm he has been doing business with for 30 years to drum
up some cash to offset the machinery/slow sell off. Remember 40-60K Elios
cruising the HOV lanes is money pure & simple. They will pluck control of his
project out of his cold dead hands.
PS: COMAU should talk to these guys: http://www.globalmachinebrokers.com/
proving/demonstrating that thay can produce their vehicle to a perceived market.
That means they've got to make the ones they've sold folks................Therein
lies the rub. Get enough $'s to to build the reservationist's Elio's & then you
really are in business. Everything else is vapors. That is why Paul has hired a
bank/investment firm he has been doing business with for 30 years to drum
up some cash to offset the machinery/slow sell off. Remember 40-60K Elios
cruising the HOV lanes is money pure & simple. They will pluck control of his
project out of his cold dead hands.
PS: COMAU should talk to these guys: http://www.globalmachinebrokers.com/
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Or sale of control, with PE as a minority owner.
Snipped: It's important to note, EM has not been selling the plan for just the car. It's whole package including building a brand and all the other opportunities associated. There is much higher profit in the aftermarket and accessories, even the possibility of a sport-model Elio.
That planning is definitely reserved for the investors eyes only. All I know for sure is it's better than the car by itself.[/QUOTE]
That planning is definitely reserved for the investors eyes only. All I know for sure is it's better than the car by itself.[/QUOTE]
When you are dealing with start-up funding, there are lots of ways to skin the cat. When it comes to raising private money, the structuring alternatives are endless (debt, equity, debt that acts like equity, equity with debt characteristics, etc.) that don't result in a loss of control. You can set milestones, so that if the company fails to meet objectives, the management loses some control. Everyone should understand that private placement money can be very expensive both for the cash expenses, time required and in loss of control. Its probably at least 15% cash off the top in sales commissions, fees and legal expenses, not counting EM's costs for time and money for investor presentations, travel, entertainment, etc. If they are lucky, they may net 80%; probably less.
With regard to government assistance, AVTM is the most valuable to EM, but there are probably state and local job creation programs that can assist, once they start hiring. There may also be state and federal tax breaks that may apply. (Of course, tax breaks only work if you have taxes to pay.)
I assume EM is mining every possible private and government source for funding. I'm not familiar with Corporate Fuel, but I assume they have institutional investor clients able to make substantial investments. I'm pretty sure they are not promoting this to individuals, not even high net worth individuals. Its just too difficult to raise that much money from individuals, even if the minimum investment is $100K.
With regard to government assistance, AVTM is the most valuable to EM, but there are probably state and local job creation programs that can assist, once they start hiring. There may also be state and federal tax breaks that may apply. (Of course, tax breaks only work if you have taxes to pay.)
I assume EM is mining every possible private and government source for funding. I'm not familiar with Corporate Fuel, but I assume they have institutional investor clients able to make substantial investments. I'm pretty sure they are not promoting this to individuals, not even high net worth individuals. Its just too difficult to raise that much money from individuals, even if the minimum investment is $100K.
Dusty921, I agree. I look at the funding options as life preservers. Elio may need them all to meet the 2016 production deadline. If Elio misses the first one they drown. If they miss any after that they drown. I hope somebody throws them a life preserver very early so the EP5s can be built and tested. That would be a huge relief as testing for me is a critical step in the process.
It came directly from the gov agency itself. We're talking about the re-application in this.
The original was initiated from EM with out prior invitation.