Financing, Etc.

[Elio Amazed]

I think Elio Motors is at a do-or-die juncture in their development, and I'm not too confident that they will make it. On the engineering side, they have nailed the concept and implementation. On the PR side, they exude confidence and transparency about how everything will work out (assuming financing). But on the financing side, they seem lost in the weeds. I was very hopeful when they announced in their Sept. 16, 2016 PR that they had submitted an application for the Department of Energy's (DOE) Advanced Technology Vehicles Manufacturing (ATVM) loan program. They suggested that 65,000 reservations might be sufficient to satisfy the DOE requirements. Now that they have over 65,000 reservations, there is silence. I contacted them but they could not comment individually since they are a public company. I am waiting on a press release where they can make a public statement.

I think they may be ready to fold as there is no apparent source of funding for the estimated production costs of 376 million dollars (see here) and very little in their bank account. As a minimal shareholder and SIL holder (#18818) I have full confidence in the design and methodology used to create the vehicle. But my confidence in their ability to pull off this venture is quickly dwindling down to zero. At some point, one needs to be a realist. And I've reached that point.

Welcome. Like Johnny said, we'll have none of that. Realism gets smacked down hard here and has no place around these parts.

 

[Elio Amazed]

http://jalopnik.com/elio-motors-given-an-extension-to-bring-its-three-wheel-1796034610

The SEC document says if Elio receives $25 million in funding by the end of July, then Elio must pay back RACER its overdue bill—now totaled at $1.75 million—and on top of that, the default interest rate of 18 percent will begin to accrue starting in August. But now, Elio has an extra year to pay back the full loan.

So here’s the question: Who’s going to immediately float Elio $25 million?

Hmmm. Elio Motors owes the Racer deal $22 million. The $1.75M sounds close to the amount they still owe to the people who built the engine.
The fines alone in the Racer deal (that really have nothing to do with the loan itself) would have been $7.5M.
Ironically the same amount that Caddo Parish payed for the whole plant.

So... yeah Boo, An injection of $25M might just end up vanishing into thin air like cold water hitting hot pavement in July.

Stranger things have happened.

 

[Watashiwah]

Maybe even with a 25 million dollar band aid Paul can hold off the fines and even put out a few vehicles to get some visibility and traction (punny, eh). Others, that shall not be named, have put working vehicles on the road for way less than 25 million measly bucks. But who, other than our man Stu, will step up at this late juncture?

 

[booboo]

http://www.insidercarnews.com/elio-motors-needs-a-quick-25-million/

 

[Cache Man]

http://www.insidercarnews.com/elio-motors-needs-a-quick-25-million/

Harsh review...

 

[booboo]

Harsh review...

I agree, it is harsh, especially the last sentences.

"The only problem is, who at this point is crazy enough to float Elio’s boat? As a company, Elio has a history of blowing through money, with little to show for it. Even if you believe in the original goal, Elio might not be an appealing investment."

ElioMotors has "blown through" money but it has something to show for it.
1. An engineered from the ground up production ready autocycle.
2. Laws to allow the autocycle to travel all 50 states like a car.
3. A following of folks passionate about this autocycle.

Why would it be an appealing investment ?
$376,000,000 / $500 = 752,000 units.
I think you could have your original investment of 376 million back in several years, then be a big part of a big manufacturer.
This is a very simple example of how it might be an appealing investment.

 

[LillyMayPatterson #1685 & #5648]

I just noticed this morning, Morning Star caught up with reporting the quantitative equity report. It hadn't moved for about a month.