Financing Elio Motors Development And Production

[Horn]

Fully refundable is meaningless in bankruptcy, ask GM.......

EXACTLY!!!!! That is why very few people are offering money to Elio.

Elio has a lot of news...but no real progress.

 

[Horn]

Why doesn't Elio just get a few of these cars on the road?

I mean get 50 or 100 out there. That alone would do wonders for getting people to really buy in. It would be way better than their tour and reach many people. If I had an elio at a racetrack, walmart, or even at work, there would be a crowd around it. Also those people wouldn't have to set their calender for one date.

 

[Kuda]

Why doesn't Elio just get a few of these cars on the road?

I mean get 50 or 100 out there. That alone would do wonders for getting people to really buy in. It would be way better than their tour and reach many people. If I had an elio at a racetrack, walmart, or even at work, there would be a crowd around it. Also those people wouldn't have to set their calender for one date.

As has been referenced before on this forum, the ist production Elio is the most expensive, somewhere around 200 million+. Each subsequent Elio brings the cost down. It was ever thus in MFG., particularly in a "Start-up". That's just the real world folks & the Elio team is very acquainted with the realities, don't kid yourself. If the Elio has a chance of success
(& I'm betting it does) it will be because the Elio team has convinced the BIG MONEY BOYS that this concept has legs & can give a ROI....................that is the not so simple truth.

 

[Kuda]

As has been referenced before on this forum, the ist production Elio is the most expensive, somewhere around 200 million+. Each subsequent Elio brings the cost down. It was ever thus in MFG., particularly in a "Start-up". That's just the real world folks & the Elio team is very acquainted with the realities, don't kid yourself. If the Elio has a chance of success
(& I'm betting it does) it will be because the Elio team has convinced the BIG MONEY BOYS that this concept has legs & can give a ROI....................that is the not so simple truth.
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PS: The real money for Elio's investors will be off of the IPO that will come after not before. First
comes the private placement to fund the start-up. Once Elio goes nationwide & shows the potential
to go export, that's when the IPO will happen for two reasons. The first-ins (PP Investors) will
make a bundle on their shares & Elio will recapitalize to go into export, most likely Canada &/or
Mexico. Notice I said export not move offshore. Elio will hold to their core philosophy as long as
Paul has something to say about it...............

 

[Elynde]

Elio needs and perhaps has venture capital funding to reach production goals which seems so close! Is it speculation that Elio short funded? The average Elio enthusiast can only show their support with a pre-production reservation at levels they can afford and we are doing that. It's otherwise up to the local politicians that want to create jobs and boost their economy and Venture capitalists who just want to make even more money to keep the ball rolling and it is still rolling. IMHO

I agree with Rick's posting. I am rather leery of such a young company even thinking of going public, as stock holders often mean board member roles filled with self-important, share-holding trustees. As I have seen many companies stray from their original goals by cow-towing to such boards, I would much rather Elio remain a privately owned business for the time being. (All in my opinion, that is.)

However.... Somewhere much earlier in this thread there was a mention of KickStarter. Something like that does have merit, if it is made clear any pledges are helping to bring the item to market...not buying stock or necessarily reserving a place in line. There are quite a few KickStarter campaigns that are simple pledge drives, others offer incentives (sale a few more of those bumper stickers and t-shirts Elio already pedals for reservations). Why couldn't Elio state their case there, open an account for pledges, and offer links to the official reservation page? At worst, more people see the Elio. At best, any needed funds are raised and we get our Elio's that much sooner.

 

[DBN477]

Was it because each car cost $16,000 to build but they sold them to dealers for $5,000 to keep them in business or was it because he hired his dad as Vice president of engineering or maybe because he hired his mom as head of public relations or maybe because of the political scandal that ended further government spending on the company? Who knows... I'm glad that Elio is hiring real experts to get this project off the ground.

Exactly. start ups fail. Now Elio needs to hire a finance person. They have $55m, need $200m and have said nothing about how they will get the money. In the Elio email that resevation holders got, no mention of funding due to delay, but in an article Paul Elio states delay due to funding. Real experts? Yes, I guess it's better to bring them in AFTER you sold people on concept, than not have them at all.

 

[creekstone]

Now Elio needs to hire a finance person. They have $55m, need $200m and have said nothing about how they will get the money. In the Elio email that resevation holders got, no mention of funding due to delay, but in an article Paul Elio states delay due to funding.

Do you really think Elio doesn't have a financial officer?

As a privately held company, I think Elio Motors has been fairly transparent.
They owe you nothing. But they share enough to make "the ride" interesting.

 

[Kuda]

Do you really think Elio doesn't have a financial officer?

As a privately held company, I think Elio Motors has been fairly transparent.
They owe you nothing. But they share enough to make "the ride" interesting.

I concur. Elio's sales rep. said they were doing a "private placement". If that is the case delays in funding are common.
The legal folks will not rush any part of it (fearing malpractice). Skepticism isn't a fault per se, probably wouldn't
want to play the ponies though or bet on Elio either for that matter. I just happen to think Elio is a better bet...............

 

[goofyone]

Exactly. start ups fail. Now Elio needs to hire a finance person. They have $55m, need $200m and have said nothing about how they will get the money. In the Elio email that resevation holders got, no mention of funding due to delay, but in an article Paul Elio states delay due to funding. Real experts? Yes, I guess it's better to bring them in AFTER you sold people on concept, than not have them at all.

What Paul Elio wrote in the letter to reservation holders and what he is quoted as saying in the article due in fact match up. In both cases he gives a delay in funding, or simply written another way 'timely closing of financing commitments', as a reason for the production delay. He also goes on in the article to explain that Elio Motors can not start the next round of funding until the $7.5 million from IRG is in hand which likely matches up with what Kuda has mentioned in the preceding post about a 'private placement' and answers the question about how they will get more money.

We also know from the article, and previous articles, that the IRG lease, which was eventually signed in December, was immediately suspended and did not actually take effect until this month. This delay in IRG assuming control of the Shreveport plant also likely delayed the $7.5 million IRG was supposed to provide Elio Motors even further.

The other reason Paul Elio gave in the letter to reservation holders, a delay tied to the evaluation of the plant, is very likely tied to the fact that they did not have control of the site until the beginning of this month.

This is a few months later than anticipated, with the delay tied to the evaluation of the plant as well as the timely closing of financing commitments.

http://us6.campaign-archive1.com/?u=24b371802c83d81776b06aa68&id=0d2e95dfd4

Elio said production — previously planned to start by March 2015 — was set back because of a funding delay last year.

Stuart Lichter, an industrial developer leasing the plant, was set to invest $7.5 million in Elio Motors in conjunction with the purchase of the facility for the same amount by Caddo’s Industrial Development Board (IDB). The proposal received a green light from the Caddo Commission in August, at which time Elio believed the deal would be finalized, wrapping that round of funding. However, it was delayed until December.

Elio said he could not start the current round until Lichter’s money was in hand. He said if funding falls into place “unbelievably quickly” there could be no delay. However, if it takes the time he initially allotted, production will be delayed until the second quarter or the third quarter if that funding process takes longer.

http://www.shreveporttimes.com/article/20140519/NEWS0503/305190007/Elio-production-delayed-mid-2015

 

[Devilstower]

It wasn't the government that killed the 100mpg carb it was big oil buying the patent and burying it. And Ty if you are reading this, that technological bit was well before your diapers were dry all day.

Sorry, much as we'd all like to believe that fabulous mileage is hiding in Warehouse 13, there never has been a 100 (or 200, or 300 depending on who tells the story) carburetor.

http://www.snopes.com/autos/business/carburetor.asp

"As sometimes happens in the world of urban legends, desire for something to be true transforms a rumor into certainty that this very thing is fact. Over the years, our legend about a 200 mpg car has bobbed to the surface in community after community, been debunked in numerous respected publications, and bobbed right back up in the wake of those debunkings. The need to believe in this wondrous technology and the evil car manufacturers who are deliberately withholding it from the market appears too strong to combat. "