Send Email To Dop To Show Support For Elio Motors Loan.

[ks6c]

I feel (and that makes me an expert... Well, obviously not but I care what I think even if no one else does) that Elio has investors lined up and ready to fund this into production. Elio probably doesn't want to "give away" a chunk of the business by allowing the investor(s) to "buy in". That could be why they applied for the loan. I can't blame them. If Elio has enough funds right now to pay the interest on the loan for the next year or so, it would be wise to use the loan and maintain control of his company. In a couple of years, IF he wants to go public, the company would be worth much more and he could sell off a smaller portion for the same money and maintain control... like the Ford family did.

I could be standing off in left field.... way off base. But, I don't think I'm far off if at all.

And that's my 2 cents worth.

+2 on all that!

 

[tonyspumoni]

My feeling (speculation, just like you) is that you are correct.

No one really knows for sure, but I too think they have the funds to do this. Their founders are their Series A investors - folks like Stuart Lichter. These guys all got board seats and thus are part of the management team.

Given (1) how quiet has been the news on capitalization and (2) how deliberate and slow the ATVM loan process will be, I can only conclude that the founders or new investors - Series B investors who would be, by definition, not founders - have all thrown in more money and probably enough to get into production. The ATVM loan, if funded, gives them a very cheap source of capitalization. Either they can use this to buy out any existing investors who want to cash out or they can use it to leverage expanded production should this go gonzo.

There is zero chance that the ATVM loan will be approved and funded over the timescale left prior to production if there is no other source of funding. I actually think that the ATVM loan now has more to do with making their cost of new capitalization cheaper, e.g. offering Series B investors a reduced stake or saying fine, we don't need you anyway.

 

[Norahsbed]

I feel (and that makes me an expert... Well, obviously not but I care what I think even if no one else does) that Elio has investors lined up and ready to fund this into production. Elio probably doesn't want to "give away" a chunk of the business by allowing the investor(s) to "buy in". That could be why they applied for the loan. I can't blame them. If Elio has enough funds right now to pay the interest on the loan for the next year or so, it would be wise to use the loan and maintain control of his company. In a couple of years, IF he wants to go public, the company would be worth much more and he could sell off a smaller portion for the same money and maintain control... like the Ford family did.

I could be standing off in left field.... way off base. But, I don't think I'm far off if at all.

And that's my 2 cents worth.

I'll add my two cents to that as well!

 

[HHH]

There is zero chance that the ATVM loan will be approved and funded over the timescale left prior to production if there is no other source of funding. I actually think that the ATVM loan now has more to do with making their cost of new capitalization cheaper, e.g. offering Series B investors a reduced stake or saying fine, we don't need you anyway.

I was thinking the same thing, until http://www.elioowners.com/threads/birmingham-al-october-24-26-2014.4105/reply?quote=60443.

I'm unsure what fast track timing would mean.

 

[tonyspumoni]

I think the Government DOES need a win and that Elio's prospects for getting the loan look good. But I also think that Elio needs the cash to get into production much sooner than DOE is likely to get through the loan process. Permanent staff at DOE would have to stick their necks out to get this done this year and all past loans took at least a year to process. I can't see that happening regardless of the win-win nature of this. DOE just isn't that decisive.

Moreover, Elio Motor's management team seems very slick. It seems inconceivable that they would leave such an important detail as their capitalization plan to a process over which they exert almost no control. They applied for the loan rather late and in an offhand sort of way, which tells me they either lack foresight and experience (clearly false) or that the ATVM loan would be a nice-to-have not a need-to-have.

 

[Smitty901]

Perfect world ELIO take not one penny of Government money. We don't live in a prefect world. We live in one that has made many companies depend on government (the peoples) money. So if they can get it they may as well.

 

[Rickb]

Perfect world ELIO take not one penny of Government money. We don't live in a prefect world. We live in one that has made many companies depend on government (the peoples) money. So if they can get it they may as well.

Take? It's a DOE loan to be repaid in full with interest designed to encourage new innovation and technology.......and finally something to benefit the low income and average guy.

In a perfect world I would have a reservation deposit on a Tesla Model X. LOL Tesla just paid back their DOE Loan in full 9 years early.

 

[Rickb]

I think the Government DOES need a win and that Elio's prospects for getting the loan look good. But I also think that Elio needs the cash to get into production much sooner than DOE is likely to get through the loan process. Permanent staff at DOE would have to stick their necks out to get this done this year and all past loans took at least a year to process. I can't see that happening regardless of the win-win nature of this. DOE just isn't that decisive.

Moreover, Elio Motor's management team seems very slick. It seems inconceivable that they would leave such an important detail as their capitalization plan to a process over which they exert almost no control. They applied for the loan rather late and in an offhand sort of way, which tells me they either lack foresight and experience (clearly false) or that the ATVM loan would be a nice-to-have not a need-to-have.

I think EM is smart. I'm guessing EM had to have their concept developed and business plan well underway looking 100% highly likely that the Elio would actually reach production status or the DOE would have laughed at the loan application.

 

[Chaz]

Take? It's a DOE loan to be repaid in full with interest designed to encourage new innovation and technology.......and finally something to benefit the low income and average guy.

In a perfect world I would have a reservation deposit on a Tesla Model X. LOL Tesla just paid back their DOE Loan in full 9 years early.

The reason that Tesla paid back the loan so quickly is by selling carbon credits. All of Musk's current companies require the governments help to keep them afloat

 

[tonyspumoni]

I think EM is smart. I'm guessing EM had to have their concept developed and business plan well underway looking 100% highly likely that the Elio would actually reach production status or the DOE would have laughed at the loan application.

Fully agree Rickb. The application required a full audit of EM's financials which I think is rather interesting in light of the fact that the application was accepted as "complete" and not kicked back for more details. This would suggest that EM was confident that their financials looked good and that the DOE found them at least good enough for them to be going forward with.

What COULD DOE have done? Well, suppose the financials looked bad, e.g. EM had no money, but just a good plan. My guess is rather than rejecting outright, DOE would have asked for clarification, e.g. "when will you have money or what is your plan for money". DOE doesn't want to reject outright, so anything really funny in the application would have been flagged for "give us more info."