Funding Refused By Paul Elio

[TexasTesla]

I’m certain that potential “deep pockets” investors were very puzzled with regards to why Elio Motors had assumed the financial liability of leasing a huge manufacturing facility long before they had any Elio vehicles that were production ready...

I think the term is...putting ” The cart before the horse“...

....

 

[BADBOY]

Perhaps it’s the fact that the main glimmer of hope is that Paul and Hari continue to take ‘reservations’ for ‘spots in line’; yet another self serving situation with little downside. These new ‘reservationists’ are (hopefully) looking to the internet for accurate, honest, and verifiable information, not ‘blue sky.’ The way it is now, without any news, SEC filings, ‘leaked’ videos, press releases, or ‘pop ups,’ Elio Motors doesn’t even need the protection of ‘Forward Looking Statements.’ If they don’t, can’t, or refuse to do it, it is incumbent on us ‘veterans’ not to gloss that over.

We all have our theories, but one common denominator is that Elio Motors is not, and has not, provided ANY viable updates for well over a year, if not longer. This Public Forum certainly can invoke its own rules but also has a responsibility to hold the principals of Elio Motors and their benefactors such as ESG Engineering to account: EM is not even remotely concerned with enhancing their image, why should they be protected?

For me it's like having a child diagnosed with terminal cancer. You know short of a miracle and I do believe in those, there is little hope. The 'little' depends on the individual. I am in the position purchasing 2018 Altima 14 months ago. I don't need two cars and the Nissan fits my needs. In addition another 5500 to payoff Elio if production were to start would impact my income tax. Also a tight budget does not allow for 2 car payments. Eli has now become an ego for me; not a problem solver.

 

[BADBOY]

Impact... hmm, some numbers, conservatively, (BTW, I refinanced my cars and other loans into my house. $800/mo savings)

17.5 million cars are sold every year in the USA. On the average each Elio purchased displaces a sedan purchase, no mater what EM says about that, at least somewhere during the life cycle of a driver.

Average cost of a sedan, $25k. Average MPG, 25mpg, $400/year to service maintain and repair.
average daily use 30miles, 312 days/year (weekends as one day)
If gas is $3/gal, and Elio sells 100,000 units at $8K each year and they get used 50% of the driving days.
If Elio's get 80mpg, and go out of service at 10k attrition rate each year, Elio cost half or $200 less to service/maintain each year on the average....

At 50% use, 100k units each year;
The US public would save $2 billion the first year, but by year ten the total savings would be 17.3 billion.
One person saves $17.8k the first year and $23,2k by year ten if the Elio is still in the game.
But for some people, at 100% use,
One person saves $19.6k the first year and $29,8k by year ten. Buy a new one, repeat.

No pain, all gain.

Ow..i now have pain in my head, vertigo and my eyes burn. We're you a mathematics teacher in your past?

 

[BADBOY]

I found it. Instead of a mystery source of information about funding, I went to the horses mouth where's it's documented. I found that Elio Motors was privately funded back in early January 2013. So it was funded and production should start in June 2014.
Q: Where's the funding coming from at this stage:
PE:Stu Lichter of IRG is backing the purchase of the plant in this round of funding and then we have a capital stack that everyone is comfortable with and it's all privately funded

Q: When will people be able to take this on the road?
PE: We should start production in 18 months, so June of 2014.

You can see Paul Elio say it right here:
https://www.cnbc.com/id/100373460

I ask this. With Elio privately funded back in January 2013, why did they start taking non refundable reservations? With private funding, you take refundable and show how this was an excellent investment. Plus, why did Elio have do incentives for those reservations (50% discount, SIL's and fixed prices). With private funding you just say, "1K refundable and it'll cost $7500 with 84 mpg." Since we needed to get Americans back to work plus really high gas prices, there should have been 100K reservations in a month. No risk for the reservations holders and it saves the American public billions. Slam dunk if you ask me. Plus, why do an IPO#1 and IPO#2 and Eliocoin of it's all privately funded?

Then this thread starts 2 years later with someone who claims Elio turned down funding and then another, that Elio has offers and it's not if but when. Does anyone see how none of this makes sense. What happened in January of 2013 because the tune sure changed. Did Paul turn down the funding in 2013 and then turned it down again in 2015? Maybe there was no funding at all but just interest in funding but the phone never rang with the good news?

That's the video interview that I saw years ago and have not been able to find since. Thanks for posting I have saved it to my cache.

 

[Made in USA]

I’m certain that potential “deep pockets” investors were very puzzled with regards to why Elio Motors had assumed the financial liability of leasing a huge manufacturing facility long before they had any Elio vehicles that were production ready...

I think the term is...putting ” The cart before the horse“...

....

I think the "plan" was to sell the excess equipment and pay for the lease while the engineering and production could start. They did in fact sell some equipment but you have to wonder what kind of shape it's in now after having sat for so many years without running. I speak from experience that equipment that has been sitting around usually has some problems. Even things like programming software become dated. Then there is the problem of finding experienced technicians to get it all running. I wonder if they are going to sell the rest of the equipment before closing shop.

 

[Samalross]

I think it would be scrap value by now.

 

[RSchneider]

I think the "plan" was to sell the excess equipment and pay for the lease while the engineering and production could start. They did in fact sell some equipment but you have to wonder what kind of shape it's in now after having sat for so many years without running. I speak from experience that equipment that has been sitting around usually has some problems. Even things like programming software become dated. Then there is the problem of finding experienced technicians to get it all running. I wonder if they are going to sell the rest of the equipment before closing shop.

Last time I checked from the SEC filings for the equipment. They took out a $25M loan, sold $3M of the equipment they did not need, have $3.9M left on the loan (as of June 2018) and devalued it to around $11M (for tax purposes).

Then they have been making lease payments on the plant ever since around 2014. They have reduced the square footage to reduce the lease payments but even at that, it's just over $200K/month for those payments.

In conclusion, they have about 5 years of making payments on a plant and equipment they have never used. They needed the plant and equipment as it showed all of the naysayers and future investors that they were a legit company and have a plant and equipment to build a vehicle at 250K units per year. Think about it, would you have given them $1K if they never had any of that? I suspect the rate of reservations would have been much less if they didn't have it. As we all know, the rate of reservations was not enough to show interest, especially the $1K all in ones. It was a move to see if it would help but now it's come back to haunt them as all of the money they raised in reservations has been spent on lease payments, equipment payments, the $7.5M fine, that $0.5M fine and the default 18% interest they pay because they were late on the equipment loan payments.

If Elio raises that $25M in Eliocoin, they can pay everything off and then be in better shape for future investors. When the Eliocoin comes out is anyone's guess as Elio still has not filed the form with the SEC when it comes to doing this.

 

[TexasTesla]

If Elio raises that $25M in Eliocoin, they can pay everything off and then be in better shape for future investors. When the Eliocoin comes out is anyone's guess as Elio still has not filed the form with the SEC when it comes to doing this.

At this stage in Elio Motor's business cycle...who would purchase $25 million of "ElioCoins"...what would be the the financial benefit to "ElioCoin" investors?

IMHO..."ElioCoin" was just another one of Patrick Byrne half-baked financial fantasies...there's not even a remote possibility that the SEC would ever approve of a Elio Motors STO offering...

Paul Elio made a huge credibility mistake by becoming involved in the debacle that Patrick Byrne created for Overstocked.com shareholders...

Elio Motors will certainly be a topic of interest in the class action lawsuits that have been filed recently against Patrick Byrne for security fraud...

https://thetokenist.io/tzeros-future-uncertain-as-overstock-com-is-sued-for-securities-fraud/amp/

...

 

[RSchneider]

Jones trading is placing those Eliocoins. They were doing it through October 15, 2018 (which was a year ago). Hopefully they got that $25M filled and the Eliocoin can go live come December.

 

[Made in USA]

Without a CFO (Connie Grennan) or an external financial company to verify the finances, Elio Motors doesn't stand a chance of getting financial investors to invest, ElioCoin to get appoved, or the SEC's blessing. The OTC still lists Elio Motors as PINK.

My guess it that they will give all the equipment to the Parish for past fines when they file for bankruptcy.

Still, you never know. Perhaps Paul is busy playing the lottery and might win. That would be interesting.