Is Elio Still Saying Mid 2016 To Start Production?

[Rickb]

Well, this is gonna be a somewhat scary and exciting moments for all of us and depending how one entertain it! EM have less than a year now to meet their production target Q4 2016! A lot of hurdles ahead, but they've come this far and we've waited this far! I hope all goes well on the E-series build and testing phase. The results may well be the key to the money (funding)!

Yes, I agree! We are all on the same train to Elioville and hoping all goes well along the way. I hope EM wraps up the P5 Build and gets started on the E builds/testing.

 

[Rickb]

If I recall, the actual wording is something like 'have a reasonable expectation to meet the repayment terms' rather than "prove they can pay back the loan". It's an important distinction in that there is no burden on them to prove beyond any doubt, but instead just have to indicate there's a strong chance of success if the loan is granted. Considering the current number of reservations would provide revenues greater than the loan value should they reach production, I think that hurdle is fairly achievable. All it should take is showing that the Elio will meet (or come close to) the cost, mileage and safety goals that those reservation were based on.

I would like to agree with that scenario, but Elio states that they do not guarantee production and are under no obligation to deliver vehicles in both the EM pre-reservation agreement and in the EM SEC Filing Document. Both documents state high risk venture.

The ATVM loan should not be needed to guarantee EM's ability to 'start' production, but rather allow EM to scale to increase production numbers to help guarantee the startup's continued success. If a startup company is debt ridden, facing contract penalties, has no sales history or product to sell, with only the 'promise of future sales', makes it difficult to believe that any lending institution to include the DOE would approve a $230 million dollar loan. I don't blame the DOE for the slow progress. The P5 isn't complete and tested, the E builds/testing may not have even started and those milestone events have nothing to do with the need for ATVM loan funding, but only aid the approval process.

The best option would be to get the money to start production from private venture capital, start building the $300 Million in pre-orders with deliveries generating sales revenue. Perhaps after generating some proven sales revenue along with a surge of new orders after the Elio hits the streets, actually qualify for the ATVM loan approval to ramp up production demand. Expressing my opinion only and not trying to sell it.

 

[slinches]

I would argue that while EM is under no obligation to produce vehicles at this point, there's no doubt whether they would follow through if they were able to secure the necessary funding. And I can see why the DOE would want to have hard data on the viability of a product prior to granting the loan, but I see no reason why that loan couldn't be used to fund the initial full scale production run. Demand on the scale of the loan value is already established, the only questions left are whether the Elio will match the sales pitch (thereby validating the reservations) and whether EM can execute their production plan. They have the production facility and tools in hand and people with proven expertise to spool up and manage the line, so that seems like a low risk venture given they have the funds.

I understand why some might disagree. There's all sorts of political motives that cloud the issue and there's enough wiggle room in the language to deny anyone if the DOE just doesn't like them. I just do not believe it's a foregone conclusion that the ATVM loan won't be granted. If that were the case, why would it be specifically mentioned in the SEC filings and in PE's public comments about funding sources?

 

[Rickb]

I would argue that while EM is under no obligation to produce vehicles at this point, there's no doubt whether they would follow through if they were able to secure the necessary funding. And I can see why the DOE would want to have hard data on the viability of a product prior to granting the loan, but I see no reason why that loan couldn't be used to fund the initial full scale production run. Demand on the scale of the loan value is already established, the only questions left are whether the Elio will match the sales pitch (thereby validating the reservations) and whether EM can execute their production plan. They have the production facility and tools in hand and people with proven expertise to spool up and manage the line, so that seems like a low risk venture given they have the funds.

I understand why some might disagree. There's all sorts of political motives that cloud the issue and there's enough wiggle room in the language to deny anyone if the DOE just doesn't like them. I just do not believe it's a foregone conclusion that the ATVM loan won't be granted. If that were the case, why would it be specifically mentioned in the SEC filings and in PE's public comments about funding sources?

I don't think it's a forgone conclusion that the ATVM Loan won't be granted, just that there are milestones that need to be completed to meet the qualifications to be approved. I personally don't think it's required even if EM was ready start production, it's just a cheap low interest funding source that would be preferred.

 

[WilliamH]

I don't think it's a forgone conclusion that the ATVM Loan won't be granted, just that there are milestones that need to be completed to meet the qualifications to be approved. I personally don't think it's required even if EM was ready start production, it's just a cheap low interest funding source that would be preferred.

If milestones are required they should be published and clearly defined. Not developed on the fly to screw with people. If they aren't put in writing where they can be looked at it is a form of blackmail and extortion. It's the kind of thing that organized crime people were incarcerated for. Sort of what the RICO statutes were implemented for.

 

[DAVID BROWER]

THIS IS GOOD NEWS !

SINCE I WAS LAID OFF IN SEPTEMBER , I DON'T HAVE THE MONEY TO PAY FOR THE CAR
OR ANY SORT OF A COMMUTE TO WORRY ABOUT .

THIS GIVES ME PLENTY OF TIME TO HOPEFULLY STRAIGHTEN THINGS OUT .

 

[Coss]

If milestones are required they should be published and clearly defined. Not developed on the fly to screw with people. If they aren't put in writing where they can be looked at it is a form of blackmail and extortion. It's the kind of thing that organized crime people were incarcerated for. Sort of what the RICO statutes were implemented for.

Sounds you have never had to deal with government agencies that give you things; not knowing the milestones are very typical.
When I went through retraining after an L&I injury I had to deal with one government office that was suppose to help you; how did I find out about them? Someone that had been through an L&I retain told me; and the items I was entitled to? You have to know what to ask for because they won't tell you; you can have an allowance for clothes of up to $1,200.00 to get you back in the work force, and if sitting is a problem, they'll buy you an orthopedic office chair; transportation? They will pay for that both ways for a year; if public transit isn't available, they'll buy you a car plus gas and maintenance. And the list goes on; how do you find that list? You have to know what to ask for, because no one there will tell you what's on the list.

 

[WilliamH]

Sounds you have never had to deal with government agencies that give you things; not knowing the milestones are very typical.
When I went through retraining after an L&I injury I had to deal with one government office that was suppose to help you; how did I find out about them? Someone that had been through an L&I retain told me; and the items I was entitled to? You have to know what to ask for because they won't tell you; you can have an allowance for clothes of up to $1,200.00 to get you back in the work force, and if sitting is a problem, they'll buy you an orthopedic office chair; transportation? They will pay for that both ways for a year; if public transit isn't available, they'll buy you a car plus gas and maintenance. And the list goes on; how do you find that list? You have to know what to ask for, because no one there will tell you what's on the list.

It's called political corruption and it's part of the reason that Civil Service should not be unionized.
All your argument does is say that Washington is corrupt and implies that we should accept it.
And yes, I tried to get the paper work done to get a 501c3 for a VFD so I have a real good idea.

PS -- What's an L&I injury?

 

[Elio Amazed]

It's called political corruption and it's part of the reason that Civil Service should not be unionized.
All your argument does is say that Washington is corrupt and implies that we should accept it.
And yes, I tried to get the paper work done to get a 501c3 for a VFD so I have a real good idea.

PS -- What's an L&I injury?

Please keep your political opinions to yourself.

Kidding... Jusssst kidding.

 

[Elio Amazed]

THIS IS GOOD NEWS !

SINCE I WAS LAID OFF IN SEPTEMBER , I DON'T HAVE THE MONEY TO PAY FOR THE CAR
OR ANY SORT OF A COMMUTE TO WORRY ABOUT .

THIS GIVES ME PLENTY OF TIME TO HOPEFULLY STRAIGHTEN THINGS OUT .

I'd be personally bummed to learn that D.B. couldn't add an Elio to his collection.