I wonder if they offered it to lots of ppl. It seems like many ppl are stuck on the fact they were asked to apply. Now if PE had Senator Shitty ask him to fill it out, I would put more into it.
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Anyone Else Think It Wont Happen?
- Thread starter mumblemouth
- Start date
I wonder if they offered it to lots of ppl. It seems like many ppl are stuck on the fact they were asked to apply. Now if PE had Senator Shitty ask him to fill it out, I would put more into it.
Well, yes, that's a good point, we have no idea how many prior applicants were invited. And therefore no idea about the attitude toward EM based on that action alone. Surely we want to know Senitor S-ity 's attitude towards EM. At least SS didn't block it.
--added-- he also didn't block the fast 3wheek turn-around to pass 'step1'
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Smitty901
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The invite was a chance to show your support and channel some major cash their way. In return based on you response you place in line would move up or down. The invite was just way of asking how much are you willing to funnel back to us.
Hmm, that's one way to look at it.
In that case, It could mean too, that the rubberstamp is waiting for EM to make a good enough an offer to pop to the front of approval.
On the other hand, I doubt that a gov agency is that agile or opportunistically business savvy to play that game. They have a process with thresholds, and that's probably about it.
Wanna Green One
Elio Fan
These guys can do it. If I was in a business, and I said to a banker "Well, I don't know if we'll sell any but 40,000 freaking customers already put down thieir money, and I'm guaranteed 40,000 X $6800 = $272,000,000 in sales as soon as I can make them, do you think a $250,000,000 loan would be OK? " I'd think any reasonable banker would probably see the logic there.
I think a banker would argue that you cannot guarantee those all become sales. Also, even if they do, that is revenue. What is the expected profit margin?
Also if any banker thought that was reasonable, dont you think EM would have the money now?
A reasonable banker would want to be certain the cost to manufacture wasn't $272,006,800.00 to produce. LOL
Welcome WGO! The pre-orders are a definite positive for attracting both investors and lenders.
tonyspumoni
Elio Addict
The tenor of the discussion surrounding private equity financing has become waaaaaay more sophisticated lately. Necessity is the mother of invention. Great stuff.
As for Paul being unnecessary or irrelevant that is silly. Paul is what people call "good will". Not good will in the sense of a desire to be do others well, but business good will. Value for something intangible. Think of Apple's value with and without Steve Jobs. Had Steve left Apple for, say, Microsoft, Apple's stock would have lost a quarter of its value even though it would not have altered the number of iPods they would have sold. Paul has vision and the loyalty of those who remain key to the development process. He's not going anywhere and his continued presence is key to securing funding.
As for Paul being unnecessary or irrelevant that is silly. Paul is what people call "good will". Not good will in the sense of a desire to be do others well, but business good will. Value for something intangible. Think of Apple's value with and without Steve Jobs. Had Steve left Apple for, say, Microsoft, Apple's stock would have lost a quarter of its value even though it would not have altered the number of iPods they would have sold. Paul has vision and the loyalty of those who remain key to the development process. He's not going anywhere and his continued presence is key to securing funding.
outsydthebox
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I suspect a banker dealing with loans that size might want to look a bit deeper .... while the above is true, the $272 million in sales has little relationship to the profit generated by those sales .... EM has stated that their pricing is based on $1,000 per vehicle .... on the ones with a $500 bonus, that profit will be cut by 50% .... so giving EM the rosiest projection and ignoring the units manufactured for which they have committed to giving a $500 bonus and figuring each unit with a $1,000 profit :
40,000 X $1,000 = $40,000,000
based on that, a banker considering a $250 million loan might have to do some serious pondering