Financing Elio Motors Development And Production

[JEBar]

I agree, but I'm granting EM an extension to the 4th of July to have the funding and prototype builds well underway for tooling, testing, and the ride and drive events to meet the deadline.

agree with the funding part .... if funding is in place I believe they could easily hold off on the prototypes for 3 or so more months and still have time for 6 months testing/plant setup and 3 more months to train the factory workers .... I would be surprised right now if ride and drive events occupy a very high place on their things to do list .... while I'm sure they would prefer otherwise, ride and drive events may not come along until sometime after Elios are rolling off the line

 

[John Painter]

and 3 more months to train the factory workers ....

I thought Comau employees were actually going to be assembling the vehicles for the first few months with Elio employees working alongside them until they have the production routine down, then they'll take over.

 

[Jim H]

agree with the funding part .... if funding is in place I believe they could easily hold off on the prototypes for 3 or so more months and still have time for 6 months testing/plant setup and 3 more months to train the factory workers .... I would be surprised right now if ride and drive events occupy a very high place on their things to do list .... while I'm sure they would prefer otherwise, ride and drive events may not come along until sometime after Elios are rolling off the line

That would represent another large disappointment for those with reservations. Drive and rides were to give us an opportunity to make the decision about AMT or standard transmissions, color, and other options. I would consider this another breach of faith on Elio's part and another very negative PR event.

 

[John Painter]

The DOE, and other 'green' oriented people in the administration, are likely to care a lot less about the production line details than they do care about actually meeting, or exceeding, the fuel efficiency target.

So the DOE considers the hallmarks of a "strong application" as including;

•Detailed project narrative and plan with key activities and milestones
•Integrated, dynamic financial model, including cash flow, and a strong NPV for the project
•Three years of consolidated financial statements (audited, if available)
•Significant equity funding at the time of application
•Significant, unencumbered collateral, broken down by asset type
•For suppliers, sale agreement for existing (and/or planned) production strengthens the
creditworthiness of the application
•Control over the proposed project site
•Experienced leadership and senior staff with experience directly related to the proposed project
•Strong operating history of the company, parent, and/or subsidiary

What are peoples thoughts of Elio's current stance weighed against these points?

 

[Rickb]

agree with the funding part .... if funding is in place I believe they could easily hold off on the prototypes for 3 or so more months and still have time for 6 months testing/plant setup and 3 more months to train the factory workers .... I would be surprised right now if ride and drive events occupy a very high place on their things to do list .... while I'm sure they would prefer otherwise, ride and drive events may not come along until sometime after Elios are rolling off the line

If the 25 prototypes are funded and built I think the Marketing Team will begin touring a couple of the production prototypes as planned for the ride and drive events without question. Marketing and getting the real deal Elio out to the Pre-order community to drive is critical to maintaining and increasing the level of enthusiasm and locking in the max pre-order production goal. The Production Team will concentrate on finalizing production details.

 

[Rickb]

That would represent another large disappointment for those with reservations. Drive and rides were to give us an opportunity to make the decision about AMT or standard transmissions, color, and other options. I would consider this another breach of faith on Elio's part and another very negative PR event.

I agree this is critical. The current Marketing Team would hold the ride and drive events in high priority immediately after the first few prototype builds are ready to roll.

 

[RUCRAYZE]

That would represent another large disappointment for those with reservations. Drive and rides were to give us an opportunity to make the decision about AMT or standard transmissions, color, and other options. I would consider this another breach of faith on Elio's part and another very negative PR event.

(Your statement will not go un-noticed by G1 and the other true believers),

This too is not reassuring ,( but will be rationalized away so the idol is not disparaged). There is just so much that can be thrown out there. The end the possibility is governed by a specific date. Sometime (?) if the 1500 workers are not cranking 'em out, there was a big, daily, very large, per-diem penalty, and unless EM secures another extension there is a very specific date that will be unable to PR it away.
All else here is BS, but that date is a reality that cannot be rationalized away.

 

[Anderson Howard]

Actually that was the "Man Prayer". Lodge motto: "Quando omni flunkus moritati" (Pseudo-Latin for "When all else fails, play dead"). Well, until the whole funding thing gets sorted out, Keep you stick on the ice, remember, I'm pulling for you. We're all in this together!

Possum Lodgic

 

[goofyone]

That would represent another large disappointment for those with reservations. Drive and rides were to give us an opportunity to make the decision about AMT or standard transmissions, color, and other options. I would consider this another breach of faith on Elio's part and another very negative PR event.

I have been trying for nearly a year now to set the record straight on this issue as I believe there are many reservation holders who have this belief however as far as I can find EM has never actually promised ride and drive events ahead of production. Instead what EM has consistently said is that they are planning a series of ride and drive events for their reservation holders 'around the start of production'.

Here is a quote directly from EM's FAQ system and I have seen this repeated many times with slightly different wording but always essentially the same:

Q: Are test drives available?
Ultimately, yes. We’re planning a series of events close to the delivery of our first vehicle to let our supporters get the Elio feeling. Once we are in full production, you’ll be invited to one of our ride and drives that will be much more comprehensive, fun and informative than a typical “test drive.”
https://eliomotors.zendesk.com/hc/en-us/articles/203333084-Are-test-drives-available-

Note the fact that this does not specify whether this happens just before or after that first delivery happens. It also does not specify how close which is very important because we have been told that we will be expected to place our orders about two months ahead of delivery. Even if these events begin happening a month before production begins that is very likely still after several thousand early reservations holders have already had to submit their orders.

I hope EM can provide the Ride & Drive events far enough in advance to give everyone a chance to participate ahead of placing their orders however I am aware that as an early reservation holder I may not get this chance and indeed EM has never promised that this would be available to me.

 

[JEBar]

I thought Comau employees were actually going to be assembling the vehicles for the first few months with Elio employees working alongside them until they have the production routine down, then they'll take over.

I have heard that IAV employees will be there to build the motors while training workers at the plant .... no clue how long the training and transition will take

That would represent another large disappointment for those with reservations. Drive and rides were to give us an opportunity to make the decision about AMT or standard transmissions, color, and other options. I would consider this another breach of faith on Elio's part and another very negative PR event.

agree but the reality is, if they started today, they would be hard pressed to hold single, much less multiple ride and drive events in all states .... I believe that they will make an effort to get them going but time and circumstance is not in their favor