Paul Elio Speaks! 05-11-18

[RSchneider]

The STO as I understand was $2.5 million of which an unknown [to us] amount will pay some bills.

$2.5M was cash for stock. So, Overstock owns 4% of Elio Motors now.

Elio coin really expected to bring in enough cash to start building 12-18 months from now?

It's 76 weeks plus a few. Then Elio will be building cars. I never heard Elio talk about waiting for the Eliocoin STO to get the 76 weeks plus a few to commence. So, I don't know what "a few" means as it could be 3 weeks or 5 weeks. That "few" weeks is to dust off the project to get it back up and running. From reading between the lines, the money from the STO is already there and they "Elio" are full steam ahead with no financial delays at all. Jones trading seems to have taken care of getting that funding.

 

[PaulCPiper]

Paul also said that 150 would be built and delivered in October. Assuming those are probably fleet vehicles for some real world testing. So with that, shouldn't we be seeing some activity at the plant, surely they'll need to hire a bunch of people right away. I think once we all see those jobs posted (today?), a lot of this nay-saying nonsense can stop. I've been looking into the past history of the project with respect to funding struggles, and never before have firm dates like these been given out.

 

[Ace]

Paul also said that 150 would be built and delivered in October. Assuming those are probably fleet vehicles for some real world testing. So with that, shouldn't we be seeing some activity at the plant, surely they'll need to hire a bunch of people right away. I think once we all see those jobs posted (today?), a lot of this nay-saying nonsense can stop. I've been looking into the past history of the project with respect to funding struggles, and never before have firm dates like these been given out.

This is what I am looking for so that I can feel confident of the seemingly impending start of production. When we see activity at the plant, and people being hired there, is when I start getting ready to buy my Elio.

 

[larryboy]

I wish we were privy enough to bear witness to the numbers Elio executives are crunching as they continue to execute their business plan. Here's what I mean --

Last Friday in Caddo Parish, Paul Elio stated more than once (perhaps first in his prepared remarks and a couple times later in framing answers to media questions) that the 66,xxx existing reservations translates indirectly to over $700,000,000. He broke it down further by explaining how there's margin built into the base price of the Elio plus the markup on accessories and options.

That's all fine and good, except that I feel his audience of reporters misinterpreted the meaning and took his figures out of context when drafting their stories and news releases.

When you say you still need some undisclosed dollar figure less than $376 million to reach cash-flow positive, and back that up by implying that the existing reservations translates to $700 million in order to justify corporate viability, it's entirely misleading.

This is a classic example of the general public not understanding the difference between revenue and profit. Let's say there's $1,000 of profit margin built into the price of the Elio. Great, the company exists to make money. And there's a 25% markup on add-ons with the typical buyer adding $3,000 of options and accessories (remember the AMT transmission is about $1k on its own!), of which $750 goes into Elio's pocket. That means the average profit from an Elio purchase transaction is $1,750.

Well, for the duration that it takes Elio Motors to build and deliver Elio vehicles to the backlog of 66,xxx existing reservation holders, they are likely averaging a loss on every transaction. Everyone has qualified for various bonuses, incentives, deposit match offers, etc, but as an example, I'll provide my situation:

List Price: $7,450
-- except I locked in at $7,000, cheating Elio of $450...
-- Non-refundable reservation deposit of $1,000 which had been spent by Elio Motors years ago but they still have to honor it by deducting that amount from my transaction...
-- 50% deposit match of $500...

So if I represent the average Elio buyer, and that translates to $1,750 in profit, but they have to deduct $1,950 from my purchase transaction, they're selling me my Elio at a $200 loss. When I take delivery of my Elio, it costs them money to hand me the keys.

Profitability and reaching cash-flow positive is not attainable until well after the first 66,xxx vehicles roll off the assembly line. Understanding that basic math should make all of us pause and reflect on why the investment capital hasn't been infused into the project yet. Do I stand by the vehicle, the vision, the four basic tenets, the potential good that the Elio could provide to society? Of course. But the business plan has flaws.

Not all the people with reservations have the same good deal as you and I have. It will take a while for Elio to start generating profits but that is true of nearly every startup I think that supplier meeting consisted of Paul saying to his suppliers "If you give me 3 thousand tires, 1000 engines, 2000 seats and so forth I will assemble them into vehicles and ship them. They are already sold and there are buyers waiting to take the vehicles if anyone wants to forfeit their SIL. I will have the cash in hand within two weeks. When I pay for the first batch of parts ship me enough to assemble 2000 vehicles. Again, since they are presold I can move them in two weeks or less." Each Elio that goes out the door will act as a moving billboard and generate more reservations/sales. I have half a dozen friends who I think might buy an Elio if they were available. At some point Paul's suppliers should be sufficiently confident in his ability to make and sell Elios that they will start shipping components on a regular basis and Paul will be sending them checks on a regular basis and everyone will be happy. I know I will be. Some of the Negative Nellies and Debbie Downers on this forum will have to find some other parade to rain on.

 

[AriLea]

I think there is zero chance Elio would have a problem with sales up to their proposed maximums, at least until initial interest is satisfied. But their 68k/yr rate is good for the long haul.

True, the original 65k population is a bit stale, but that is just a indicator of what is reasonable to expect. The public is pretty much the same make-up as a few years ago. For every one dropping out by attrition be it age or changing needs, there is a new comer (or 10) out there who will jump in.

 

[84mpg]

When they get the vehicle in production and if they can keep the price reasonable (as opposed to today’s cars and trucks) - Elio Motors won’t be able to make them fast enough to satisfy the demand. If gas goes up like I bet it will - the Elio will be number 1 on car theft list .

 

[ElioWallSteet]

.From reading between the lines, the money from the STO is already there and they "Elio" are full steam ahead with no financial delays at all. Jones trading seems to have taken care of getting that funding.

At the present time...the ElioCoin STO is just a theory at best...

STO offeings are now fully regulated by the SEC...and Elio will have to apply to the SEC to issue a STO...the process is really no different than Elio’s last failed NASDAQ IPO attempt...

Bottom line...currently Elio has raised no funds from any STO (ElioCoin) offering...

At this time...ElioCoin is just an imaginary unicorn...and there is no proof that investors would even have an interest in purchasing them...

My grandpa used to say...if something is too good to be true...it probably is!

I don’t expect the ElioCoin proposal to solve Elio’s funding problems...

 

[Rob Croson]

So if I represent the average Elio buyer, and that translates to $1,750 in profit, but they have to deduct $1,950 from my purchase transaction, they're selling me my Elio at a $200 loss.

You do not represent the average Elio buyer. Somewhere around approximately 1/3rd of the reservationists made the $1,000 all-in deposit. However:

* Not all of those got the 50% match
* Not all of those locked-in for the $7k price
* 90%+ of them will go for the automatic transmission
* A (probably significant) percentage of them will get options.

Profitability and reaching cash-flow positive is not attainable until well after the first 66,xxx vehicles roll off the assembly line.

That's certanly not true. Even assuming that all SIL holders got the same deal you do (some of us actually have a little better, with the early reservation holder extra bonus), that only accounts for around 1/3rd of all reservation holders. After that, the margins go up quite a bit. Given the options sales, I doubt they will be losing much per delivery.

Of course, that doesn't count the inevitable inefficiencies of a new manufacturing start-up.

 

[Thomas Malkin]

I wish these people would invest in some microphones!

with what money??

 

[Thomas Malkin]

Just one post...you wouldn't know it but we'll just say, we knew that all the Elio haters were going to get it wrong. So where are they now...still waiting for the reactions from You Tubers Joekker88 & Rusty. Or the many ELIO forum trolls. If you think it's negative here, check out the comments on green car reports or on the forums on Facebook & elsewhere. Nattering nobobs of negativity. Some will go silent...others will go into cognitive dissonance mode. We know that ELIO is going to be the latest $150+ a share stock that we've had. Never had a losing investment... Ever! We'll say it again...never had a losing investment... Ever!!! ELIO...Will... Be... The... Next... Big...Thing...Like Apple, like Keurig... Check out the 10 year chart for NVIDIA...what's up with that! Sit on your hands or join the tri-revolution...ELIO & XTI!!! Now back into hibernation

Well...the idea was never about getting rich. Selling low margin low price cars for Everyone Else is a calling, more like the old days when someone wanted to have a company and a decent living, rather than today, when it's all about the IPO and making billions. That's why no one wants to invest in Elio Motors; you can make more more profit on capital leaving it in derivatives and other money games. Manufacturing is just not profitable enough for big capital. That's why the ATVM program was started in the first place - to fund that which can't get private funding - not enough, anyway.