As the excitement builds up for the eventual P5 reveal this November followed by the 25+ engineering series which no one knows if funding has been secured to build it- will EM have enough time to get everything in place to finally start production by 4th quarter of 2016 as being advertised right now? Or are they facing yet another delay? It is our hope that if they ever get to the point of actually start testing these E series, everything holds up the way they're designed and engineered to perform per their computer simulations. Hope for the best, prepare for the worst as the saying goes, if "some" tests do not meet their expected results, it's back to the drawing boards for more adjustments, refinements, etc. which will cost more money and more delays! IMHO, 2016 is a long shot but not entirely impossible. Infusion of funding will decide but no guarantees how soon production will begin.
-
Welcome to Elio Owners! Join today, registration is easy!
You can register using your Google, Facebook, or Twitter account, just click here.
No Guarantees...
- Thread starter 3wheelin
- Start date
cantwait
Elio Addict
Take a look at the SEC resubmission thread. Elio has a 15-month plan for production starting with the Regulation A+ funding being received. At this point that would indicate production starting January or February, 2017. As you state, there are always variables that cannot be completely accounted for.
Even the SEC plan 'assumes' they can attract another $240 Million in funding. That doesn't seem trivial to me, and funding has been the major hold up so far. I've seen very few product introductions that went 100% according to plan. Only takes one sub contractor with problems to shut the whole thing down. I'm guessing it will be closer to 2 years from now than it will be 1 year.
WilliamH
Elio Addict
........."Even the SEC plan 'assumes' they can attract another $240 Million in funding"...........
If you didn't think you could execute the entire plan it would be pretty stupid to try to issue stock in support of getting to the part of the plan that you didn't think you could execute.
Finally someone else caught the point that they are actually part way into that 15 month schedule besides me.
Good going BlioKart!
And if anyone else recalls, PE hinted that funding is all but assured when all of the other announcements were coming out.
We talked about it, but let it go when there isn't enough information released to be sure that's what PE was hinting about.
cantwait
Elio Addict
Finally someone else caught the point that they are actually part way into that 15 month schedule besides me.
Good going BlioKart!
And if anyone else recalls, PE hinted that funding is all but assured when all of the other announcements were coming out.
We talked about it, but let it go when there isn't enough information released to be sure that's what PE was hinting about.
The 15 month plan is the most clear information that we have. The resubmission clearly states that the 15 month period starts when the money is received - "We are in the process of refining our production plans with suppliers to start production in 15 months from the completion of this offering."
While the offering in certainly underway, it has not been completed, and the 15-month period has not started. They are pretty clear that the $25 million is needed to built and test the E's, which will take six months if all goes according to plan. Then they need an additional $240 million to build and test the S1's, build and test the S2's, and ready the plant for production, which will take another nine months. While this is great news, if there are delays in either the funding of the $25 million or the $240 million, or if the testing of the E's, S1's, or S2's reveals any serious flaws, there will be additional delays. The same would be true if there are supplier or plant issues.
All the years of planning and design are about to be started to be executed. This is an exciting time, and we need to be prepared for any bumps that may still be in the road. Well, Elio needs to be prepared. We are mostly just sitting back and watching.
Only about $18.6 Million needed to build the E's with $6.4 Million being earmarked for advertising.
cantwait
Elio Addict
Actually, if you look at page 10 "USE OF PROCEEDS", your will see "Prototype building and testing" is "only" $7,451,000 and advertising will be $414,000 to 1,625,000. The page 10 numbers are for the Regulation A+ money, and the page 25 numbers include both Regulation A+ money and the $240 million to be raised later.
From Page 10 - Sorry for the format - it's much cleaning in the official document:
The net proceeds of this offering will be used primarily to fund the effort for the next stage of our development plan, which is
to build and analyze 25 prototype test vehicles. The prototype test vehicles will be used in rigorous experiments for safety and
performance, among other things. This stage is anticipated to take four to six months.
Accordingly, we expect to use the net proceeds as follows:
Minimum Offering Maximum Offering
Amount Percentage Amount Percentage
Prototype building and testing $ 7,451,000 65.7% $ 7,451,000 32.8%
Engineering design and development 2,100,000 18.5% 8,232,000 36.2%
Advertising 414,000 3.6% 1,625,000 7.1%
Working capital (1) 1,385,000 12.2% 5,432,000 23.9%
TOTAL $ 11,350,000 100.0% $ 22,740,000 100.0%
(1) A portion of working capital will be used for officers’ salaries.
Last edited:
What's left to engineer, design, and develop? $2 Million minimum to $8 Million maximum is quite the range. I wonder what additional engineering design/development funding they actually need for tweaking, if any, that's required based on testing results.
The EXPECTED net USE OF PROCEEDS (minimum/maximum) makes no sense beyond prototype building and testing which is the same amount whether the offering is MIN or MAX.