Waffling On Base Price. Can They Make $6,800?

[bunchathrees]

I doubt it will change again. It looks like they needed to finalize a price for the car in order to get the ATVM loan approval. This has to do with proving profitability and the ability to repay the loan in a timely manner. The Department of Energy doesn't like wishy-washy goals and dreams, they wanted hard math. So Elio gave them a number. I think Elio would probably get into some kind of legal trouble (fraud) if they raised the price after getting the loan. More likely they are aiming high to get the loan in the first place.

I find myself disagreeing on this point. EM can still raise the price at any time. Not for those who are making a firm commitment to purchase vis-a-vis today's announcement, but for later buyers. If those buyers sign up to buy a vehicle based on a changed price of $11,111.11 (for example), then that is the contract between those two parties. Clearly there would be reduced interest at higher and higher price points, but within a reasonable range, the market remains relatively unchanged.

The FEDs seem to be looking for firm commitments that this is a real business with real customers and that the company has a credible chance of repaying the loan. I do hope that this commitment move was made in consultation with DoE as a clear path toward approval and that EM isn't just casting around for proof of market/proof of revenue. We have likely all seen bigger more-established companies do foolish things which did not drive them closer to their stated goals.

 

[Ty]

They could also raise the prices for those of us who are now committed... IF they don't qualify for the loan guarantees or loans, whatever... Elio could come out and say that there aren't any Elios available for $7,300 so we are released from our commitments.

 

[bunchathrees]

That may well be true.

 

[Sethodine]

True, true. All good points.

 

[CherylM]

* MSRP for non-refundable reservations only and applies only until non-refundable and refundable reservations total 65,000.

Will be interesting to see what the actual MSRP is for the refundable folks and general public.

 

[Gregw]

I doubt it will change again. It looks like they needed to finalize a price for the car in order to get the ATVM loan approval. This has to do with proving profitability and the ability to repay the loan in a timely manner. The Department of Energy doesn't like wishy-washy goals and dreams, they wanted hard math. So Elio gave them a number. I think Elio would probably get into some kind of legal trouble (fraud) if they raised the price after getting the loan. More likely they are aiming high to get the loan in the first place.

If he has to go with all private investors, he won't have the control over the company to keep the cost down, that was my point. The government loan let's him keep control.

 

[RUCRAYZE]

Committing? signing the agreement, mandates a legal, required, enforceable purchase?, I think not- I've been in dealer's and even after signing the paperwork, "contract" backed out- very bad public relations to try to enforce. Bad publicity for dealer, and a potential pain in the dealer's butt buying under duress.
Q ? the $500 incentive is off the final price,7k-$500.00 how is that the extra 15% calculated? (off the 7k or off the 6.5K)?
i.e. what will be the base price w/o all the fees and extras and both incentives?
thanks-
Things seem to be pooping (darn spell checker it should be popping) , my biggest disappointment still no "mellow ", ( a year ago I promised never to mention that ryming color here) ;-) - the most visible

 

[Elio Amazed]

* MSRP for non-refundable reservations only and applies only until non-refundable and refundable reservations total 65,000.

Will be interesting to see what the actual MSRP is for the refundable folks and general public.

True that.

 

[BADBOY]

It just seems with every "bonus" the start date gets moved further into future. Email to come: "You are now eligible to get your basic Elio free but in 2065".

Not grumbling..just a sigh.

 

[Marshall]

They could also raise the prices for those of us who are now committed... IF they don't qualify for the loan guarantees or loans, whatever... Elio could come out and say that there aren't any Elios available for $7,300 so we are released from our commitments.

I think you'll find that bankruptcy is now the only legal way for Elio to get out of the Commitment being asked. If they produce vehicles, they must abide by the contract which now has a fixed price. Before this, the target price was not binding and neither was the commitment to purchase. Now they are.

By the way, this is encouraging to me as evidence of production sooner rather than later.