Reservations: 65341 As Of 6/20/2017

[AriLea]

I was thinking of doing a cost analysis on number of units needed to break even but decided the answer might scare me right out of here.

Given the claims of $1k profit each, about 4 years at 60k units/yr.
At one time in the past, 7 years was considered the threshold decision point for return on investment in new Automobile models. Over that, forget it, under that, start to consider it more.

Can't really figure that actually, because we don't know the cost of parts (and labor) versus the cost of infrastructure (and it's labor). But if 4years covers the 240mil, maybe 7 will cover the gross cash spent to produce 7 years of autocycles. (oops corrected to 7)

 

[Ty]

Given the claims of $1k profit each, about 4 years at 60k units/yr.
At one time in the past, 7 years was considered the threshold decision point for return on investment in new Automobile models. Over that, forget it, under that, start to consider it more.

Can't really figure that actually, because we don't know the cost of parts (and labor) versus the cost of infrastructure (and it's labor). But if 4years covers the 240mil, maybe 7 will cover the gross cash spent to produce 7 years of autocycles. (oops corrected to 7)

They've told us $1,000 per vehicle profit as you've said. They've also said they think they'll produce 250,000 per year... That's $250M profit right there. Now, they said there'd be $1,000 per vehicle profit... We'll see how that shakes out. Plus, there MAY be carbon credits per vehicle that they can sell to other manufacturers which could be quite considerable.

 

[goofyone]

$1K per vehicle is the base vehicle profit margin. On top of that EM will be able to generate additional profit from options, accessories, insurance, extended warranties, financing, and who knows what else.

I do not know how many of you are aware of this however EM provided Caddo Parrish with a financial plan which was apparently originally prepared in early 2012. There are of course some changes which have been made since then, such as the asking price being increased from $5,959 to $6,800, however the document does provide some good insight into what EM is planning even if the details have changed some in the last three years.

https://docs.google.com/spreadsheets/d/1nELCf_-Ngd-Q4SLivFvv8vMCb09YtvO8Y8_zfdzj2gA

 

[Ty]

... And here are my monthly figures.

 

[goofyone]

... And here are my monthly figures.
View attachment 4972

Well it is now official, according to the reservation numbers February was EM's best month for reservations since September. This is despite the fact that February only has 28 days.

If this is what a PR disaster looks like I guess EM just needs to continue with the disaster as it apparently helps.

 

[Ty]

Well it is now official, according to the reservation numbers February was EM's best month for reservations since September. This is despite the fact that February only has 28 days.

If this is what a PR disaster looks like I guess EM just needs to continue with the disaster as it apparently helps.

I think the "PR disaster" only looks so bad because we are all so close to it. In the big picture, it matters very little if Elio shows the motor soon or right before production. Truth is, most of the reservation holders will buy even if the engine wasn't disclosed very early. Then, once they are on the road, the Elio will sell itself for the most part. 10 years from now, these 10 or so months won't matter at all. I know... reservations matter right now in getting this project off the ground... That's true... but really, how many reservations do they need in order to "prime the pump". Once people see 40,000 Elios running around, orders will flood in. I'd be surprised if Elio even needs to bother with stores for years.... Well, at least for several months.

 

[JEBar]

I think the "PR disaster" only looks so bad because we are all so close to it. In the big picture, it matters very little if Elio shows the motor soon or right before production. Truth is, most of the reservation holders will buy even if the engine wasn't disclosed very early. Then, once they are on the road, the Elio will sell itself for the most part. 10 years from now, these 10 or so months won't matter at all. I know... reservations matter right now in getting this project off the ground... That's true... but really, how many reservations do they need in order to "prime the pump". Once people see 40,000 Elios running around, orders will flood in. I'd be surprised if Elio even needs to bother with stores for years.... Well, at least for several months.

well said and I absolutely agree .... we have a few folks who need to read and reread this post several times

 

[RUCRAYZE]

Hopefully the $272+ million in future revenue that 40,000+ represents is interesting to investors. Ka-ching!

ka-ching???

• 
  
  "Ka-Ching!" /kə ˈtʃɪŋ/ is a 2003 song by Canadian singer Shania Twain. It was the second international single released from her 2002 album;

 

[Thomas Maule]

ka-ching???

• 
  
  "Ka-Ching!" /kə ˈtʃɪŋ/ is a 2003 song by Canadian singer Shania Twain. It was the second international single released from her 2002 album;

Shirley you're not serious.

 

[RUCRAYZE]

I think the "PR disaster" only looks so bad because we are all so close to it. In the big picture, it matters very little if Elio shows the motor soon or right before production. Truth is, most of the reservation holders will buy even if the engine wasn't disclosed very early. Then, once they are on the road, the Elio will sell itself for the most part. 10 years from now, these 10 or so months won't matter at all. I know... reservations matter right now in getting this project off the ground... That's true... but really, how many reservations do they need in order to "prime the pump". Once people see 40,000 Elios running around, orders will flood in. I'd be surprised if Elio even needs to bother with stores for years.... Well, at least for several months.

Yep!, IMO The stores will be a necessity ASAP."They" (those after the first batch (us)) will have everything we don't -test drives, touch/check quality of accessories, and according to EM get it faster than a 2nd day delivery from Amazon!!!