Elio Crowdfunding

[NSTG8R]

Insurance isn't relegated to "motorcycle" and "car" categories. If Ferrari made a $450,000 trike, you can bet it would cost more than $100 a year to insure. The Elio will cost appropriately. Motorcycles are generally cheap to insure because they are only ridden 11 months of the year and not many miles (Oh, that's 2 months a year for you Harley guys ) .

Good point. At $6800 a pop, and if they achieve their self-imposed safety standards, the insurance premium might reflect that. I'm really not too concerned about the insurance costs, but a penny saved...

 

[Ekh]

I think firming up is partly for SEC but much more for DOE as they are evaluating whether they think Elio Motors is a good bet for the loan.

This interpretation I find doubtful. Government agencies are not known for talking to one another. Let alone taking each others needs into account. Been there, consultant to that, and know for sure that they don't communicate.

 

[Rickb]

I think firming up is partly for SEC but much more for DOE as they are evaluating whether they think Elio Motors is a good bet for the loan.

I don't think the DOE is in a betting/gambling mode after a couple of loan approval failures. I think the DOE requires verification that can only happen with the complete P5, the Crowd source funding in the bank, E builds and testing completed that locks in an actual production Elio. Otherwise it is just Elio Pie in the sky statements made on EM's ATVM application form. The DOE should require verifcation that there is a production Elio ready to manufacture if they approve the loan and confirm EM has the resources to repay that loan.

 

[John Painter]

I don't think the DOE is in a betting/gambling mode after a couple of loan approval failures. I think the DOE requires verification that can only happen with the complete P5, the Crowd source funding in the bank, E builds and testing completed that locks in an actual production Elio. Otherwise it is just Elio Pie in the sky statements made on EM's ATVM application form. The DOE should require verifcation that there is a production Elio ready to manufacture if they approve the loan and confirm EM has the resources to repay that loan.

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All loans are a bet, otherwise they're just a withdrawal from the bank.

 

[John Painter]

This interpretation I find doubtful. Government agencies are not known for talking to one another. Let alone taking each others needs into account. Been there, consultant to that, and know for sure that they don't communicate.

I don't believe they communicate at all. I do believe there are comparable vetting processes to determine if an applicant has their fiscal house in order.

 

[Ekh]

All loans are a bet, otherwise they're just a withdrawal from the bank.

Which is exactly the point of an ATVM loan guarantee! With zero risk and the possibility of profit, watch those lenders crawl out of the woodwork.

 

[John Painter]

Which is exactly the point of an ATVM loan guarantee! With zero risk and the possibility of profit, watch those lenders crawl out of the woodwork.

If they get it I agree. I think Elio Motors knows there's a lot riding on getting the SEC approval and then building the 25 engineering vehicles.

 

[Ekh]

I found this bit of the SEC prelim filing really interesting because it answers quite a number of questions that have bounced around this Forum. Here's the chunk in question:

Engineering and Development, to Date; Prototype Build and Design Validation .... Technosports Creative is the Livonia, Michigan-based prototype maker that is partnering with us to build 25 Elio prototypes using a combination of fabricated and soft-tooled and off-the-shelf components provided by the Elio suppliers. Supplier components will take six to eight weeks from engineering drawing release. Computer-aided design models or physical hardware are in place for over 90% of all non-off-the-shelf components. Once the components are available, the actual vehicle builds will likely take four to six weeks. The vehicles will be built on a pilot manufacturing line to simulate the production build. During the prototype build process, issues will be tracked and reported back to the component and vehicle engineering teams to be addressed.​

So, yes, they're using a the prototype builds to model the actual production building process. Yes, they will be producing these things in a batch. Cautionary note: when the document states CAD models or physical hardware are in place for over 90% of the non-off-the-shelf components (in other words, "custom components"), that gets a little sketchy. It's some distance between having a CAD program and having parts in-hand -- and the amount of stuff that exists only in CAD form could be up to 89% of all the custom components. That's certainly not the case, but it could be. Even if it's only 30-40% that's CAD-only at this point, that represents a pretty large possible delay in the prototype program.

 

[Rickb]

All loans are a bet, otherwise they're just a withdrawal from the bank.

Yes, but a relatively secured bet. Loans I've received over time required a down payment, the actual purchase as collateral (Home/Auto), and I had to prove an income source to insure I could make the monthly payment.

If the DOE approves EM's ATVM Loan application today and EM fails is the DOE going to reposses the partially completed P5?

 

[Coss]

Anyone else get this today?



August 28, 2015


Hello Coss,

Today is one of the most important and exciting days in Elio Motors history. We just filed our offering statement with the Securities and Exchange Commission (SEC) to seek authorization to make a formal stock offering to support our $25,000,000 equity crowdfunding raise.

We began the “testing the waters” phase of an equity crowdfunding initiative on June 19. We have surpassed our goal of $25 million, and are now at more than $30 million in non-binding expressed interest from over 8,300 investors. The quick and enthusiastic response from potential investors is further evidence for the support and enthusiasm for Elio Motors.

The equity crowdfunding initiative was made possible by amendments to Regulation A mandated by the 2012 JOBS Act, often referred to as Regulation A+. These new rules make it easier for start-ups to seek investment from non-accredited investors. Filing the offering statement is the next step in this process.

Regulation A+ is intended to allow entrepreneurs and start-ups easier access to capital. It also allows the average person to invest in a potentially hot growth company.

Given the potential positive impact Regulation A+ will have on startups and individual investors, we are proud to be one of the first companies to use this strategy. It’s innovative. We’re innovators. It’s a perfect match.

Our filing also means that Elio Motors’ company information will be more accessible than ever. Our Preliminary Offering Circular, which is part of our offering statement filed with the SEC, is available for review at www.eliomotors.com/equity (under Reserve My Elio button). One of our core principles from the beginning has been transparency, so we welcome the opportunity to share more about our mission with our fans and supporters.

There are two key pieces of information that we’d like to point out. One, the price listed in the Preliminary Offering Circular is “less than $7,600.00.” Second, we state that we do not expect to start delivering to customers until the fourth quarter of 2016 at the earliest.

Regarding the $7,600.00 statement, I have stated on previous occasions, the vehicle cost would be close to $7,300.00 if we went to market today. Our collective goal has always been and will remain focused on engineering the Elio to the $6,800 price point. You don’t earn a Gold Medal in the Olympics by aspiring and training to win Bronze. To achieve huge accomplishments you must work diligently towards big goals. We will continue to work closely with our supplier partners to find ways to reduce costs to accomplish our $6,800 goal.

As for the production date, I have frequently communicated it is driven by our fundraising efforts. The supporters that have made reservations for both vehicles and equity shares, and supported us through the 506c offering have made a huge impact on our progress. This is not an easy task, but it is very much moving forward, so as the funding picture becomes clearer, so does our production date.

We get that you want your vehicle. We understand. Frankly, no one wants to get these vehicles in production more than the Elio Motors team.

At the same time, our excitement continues to grow as our progress continues to gain momentum. We have hit several important milestones in the past six months as we have:

• Completed our engine design;
• Successfully reached our goal of $25M during the “testing the waters” phase in our crowdfunding efforts;
• Started the build for the P5 prototype;
• Recently completed another successful supplier summit;
• Begun putting together what will ultimately become our final production timeline;
• Become one of the first companies utilizing an equity crowdfunding platform to file with the SEC based on the most recent Regulation A+.

Elio Motors is a big idea. We are literally changing the world. Big ideas take time. Henry Ford, for example, took 17 years to go from prototype to mass production. It took Tesla nine years. We’ve been on this journey for seven and in the process have not compromised our original intent. Instead, we remain committed and hungry, and are making progress every day.

So, today, we choose to celebrate. Our SEC filing is a significant step in the right direction and gets us closer to our goal. We hope you will celebrate with us, and as always, thank you from the entire Elio Motors team for your support.

Paul Elio

No money or other consideration is being solicited at this time, and if sent in to Elio Motors, will not be accepted. No offer to buy securities of Elio Motors can be accepted and no part of the purchase price can be received until Elio Motor’s offering statement is qualified. Any such offer to buy securities may be withdrawn or revoked, without obligation or commitment of any kind, at any time before notice of its acceptance is given after the qualification date. Any indications of interest in Elio Motor’s offering involves no obligation or commitment of any kind. Elio Motors filed its offering statement with the Securities and Exchange Commission on August 28, 2015. To obtain a copy of the Preliminary Offering Circular which is a part of the offering statement, go to www.eliomotors.com/equity.




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