Financing Elio Motors Development And Production

[Jim H]

I think Paul is doing everything he can to move EM forward without losing control of his company to the venture capitalists. I want him to succeed, and I want my Elio. Here's how I think this could be accomplished - Paul should gift every first year reservationist a small amount of EM stock when the future owner pays the full $6800 up front. This money would be fully refundable up to the first day of production. Let's say Em is capitalized at 1,000,000 shares, and up to 6 percent is dedicated to the potential 60,000 1st year reservationists. That's 1 share per autocycle. If EM can get to the point of building 250,000 Elios per year ($250 M profit), then the company will be worth a very conservative 2.5 billion, and that one share will be worth $2,500. What does this do for EM? 60,000 reservationists X $6,800 = $408 M in the bank waiting for production to start. Don't you think they might be able borrow substantially (as opposed to giving up equity) against that collateral? Paul could even make things more interesting by committing all 60,000 shares no matter how many reservationists take part. In other words if only 1 person plunks down the $6,800 then when production starts they'll get all 60,000 shares. In addition, maybe the people who participate in this program might become eligible to become citizen salesmen with compensation. We know a lot of people will be showing off their Elios and giving test rides. They might as well get paid for it.

Maybe Paul is just another greedy hustler, but he's never come across that way to me. The more collaborative a relationship he can have with his first year customers, the better off EM will be.

Bob Gregg, welcome to the forum and congratulations for jumping in and providing your input. I'm sure the members will have comments, both positive and negative (there's always some of that). We are an active bunch with diverse backgrounds and experiences. We look forward to your comments, opinions and questions and hope you enjoy both the Elio experience and the journey.

 

[RUCRAYZE]

Welcome Bob, from Tennessee, presently the frozen north. RUCRAYZE pretty well summed it up. Althou we do ocassionally discuss the gas cap location, and the dash

Bob, so it starts, don't listen to the gas cap discussion I"M telling you it's on the right side- listen not to false profits-(price is always a factor!! BTW in the true sense there is no gas cap!!!!

 

[Bert]

Bob, so it starts, don't listen to the gas cap discussion I"M telling you it's on the right side- listen not to false profits-(price is always a factor!! BTW in the true sense there is no gas cap!!!!

I'll stick with MY choice, it belongs on the OUTSIDE!!

 

[wizard of ahs]

I think Paul is doing everything he can to move EM forward without losing control of his company to the venture capitalists. I want him to succeed, and I want my Elio. Here's how I think this could be accomplished - Paul should gift every first year reservationist a small amount of EM stock when the future owner pays the full $6800 up front. This money would be fully refundable up to the first day of production. Let's say Em is capitalized at 1,000,000 shares, and up to 6 percent is dedicated to the potential 60,000 1st year reservationists. That's 1 share per autocycle. If EM can get to the point of building 250,000 Elios per year ($250 M profit), then the company will be worth a very conservative 2.5 billion, and that one share will be worth $2,500. What does this do for EM? 60,000 reservationists X $6,800 = $408 M in the bank waiting for production to start. Don't you think they might be able borrow substantially (as opposed to giving up equity) against that collateral? Paul could even make things more interesting by committing all 60,000 shares no matter how many reservationists take part. In other words if only 1 person plunks down the $6,800 then when production starts they'll get all 60,000 shares. In addition, maybe the people who participate in this program might become eligible to become citizen salesmen with compensation. We know a lot of people will be showing off their Elios and giving test rides. They might as well get paid for it.

Maybe Paul is just another greedy hustler, but he's never come across that way to me. The more collaborative a relationship he can have with his first year customers, the better off EM will be.

Thank you for your "Common Sense".



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[Ty]

Did that last summer. Maybe it's time to write them again. Even if the car can't be legally sold in my state.

I know cars can't be legally sold directly from the manufacturer in Ohio but how about motorcycles?
If they are also illegal, I wonder if Elio would consider opening a couple of dealerships... Non-commissioned, bare bones, no repair shops necessary, franchised dealerships. Maybe the dealership makes a little per vehicle it sells but that's it... no price change allowed, no haggling... Maybe Ohio would unfortunately carry a $200 delivery to dealer charge...

 

[Ty]

Isn't that the plan everyplace in the U.S.? A store with the options on the walls, a few outside for test drives, get the OTD price, come back next day to close the deal and take possession of your E

The problem is that the Manufacturer can't own the stores in Ohio.

 

[Ty]

I have every faith that the Elio will be as safe as they claim it will be, But a strategy of going low in an accident sounds like a horrible idea. I destroyed my Camry a couple years ago by hitting the trailer hitch on a Tacoma. Tore right through my radiator and sheared off the mounts. Now imagine a lower vehicle with a shorter hood. Imagine hitting some urban cowboy in a jacked up Ram or F150. I can see that hitch going through the windshield instead.

In the offset-frontal impact that I was referring to, I envision the Elio being pushed to the side rather than under something. I'm with you about going under something... no thanks.

 

[WilliamH]

Take a look at the Fisker and Solaris loan amounts, you may have to squint to see them, not a big % in comparison to others. Many more succesful loans even on the Solar side than failed which is why the DOE program has made money on providing that low interest venture capital. It seems we focus on the 2 small failures and don't look at the overall success. Even private venture capitalists took a hit on Fisker and Solyndra. Can't win them all. Elio's loan request smaller yet. My money is on ATVM loan approval.

View attachment 4919

Can you give us the URL that the attachment came from? It's very interesting.

 

[JEBar]

In the offset-frontal impact that I was referring to, I envision the Elio being pushed to the side rather than under something. I'm with you about going under something... no thanks.

in looking at posted pictures of the EM roll cage, I tend to believe that the closeness of the front window post will offer a good bit of protection .... I too don't like the concept of failing to stop and running up under a semi so I'm not trying to say they are an end all .... in our area, vehicles hitting a deer and having it roll up on the hood, then hit the windshield aren't unheard of .... even without the air bag, I believe that an Elio's frame construction will offer pretty good protection .... far better than any motorcycle that I've ever seen ..

 

[Ty]

in looking at posted pictures of the EM roll cage, I tend to believe that the closeness of the front window post will offer a good bit of protection .... I too don't like the concept of failing to stop and running up under a semi so I'm not trying to say they are an end all .... in our area, vehicles hitting a deer and having it roll up on the hood, then hit the windshield aren't unheard of .... even without the air bag, I believe that an Elio's frame construction will offer pretty good protection .... far better than any motorcycle that I've ever seen ..

LOL. That's true. I was just thinking that with the front wheels sticking out if there were an impact to the left pod and slightly to the hood, the Elio would be pushed to the right while whatever was being hit would slide right down the left side of the Elio... keeping the driver safe from the impact.