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What Is The Latest Start Production Date?
- Thread starter grampi
- Start date
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There are two dates for "production" so they get confused. If I have it right, the latest news is still 2017 for the fleet 100 and 2018 (no quarter given - sounds ominous - like no quarter at the Alamo) for regular production. But I'm sure that both are subject to change depending on funding and supplier lead times.
Bookly
Elio Aficionado
For those dates to be true, funding has to be in hand basically now. Elio Motors gets accused of being a "scam" by some. I don't believe that at all, but the production dates invite the label. They are not real calculated dates, just new dates in the future. I guess they have to say something, but at this point throwing out dates they don't really know they can deliver on feels wrong.
Doug McDow
Elio Addict
May be those dates should be followed by (If we get financing)
BaldGuy
Elio Addict
Those 100 never made much sense to me. If they used the plant to make those 100 wouldn't they then have to start paying rent?
larryboy
Elio Addict
Also, if you put people to work building the 100 do you just send them home when the 100 are built? Do you tell them not to get another job and that you will call them back? Do you give them strict instructions to not forget anything that they learned while working on the line? I would expect that once building starts it would not stop unless there was no more demand
johnsnownw
Elio Addict
They have to start production by Summer, as well as begin paying rent, or they'll have to ask for another extension. I'm not sure how likely another extension approval is considering the attention Elio received in the parish last year.
The next SEC filing should give some answers to many of these questions.
So true. We just have to be patient with EM because what they've started is not a walk in the park! I totally understood that for them to offer a really low price (7K), they have to start big, which of course calls for a huge amount of capital. I'm quoting this verbatim from Mark Rechtin's comment on Tesla (April 2017 issue) "Today, $1 billion is the penny ante to get into the high-stakes automotive game, and that's just to get a factory (EM have it) and hire a team. Double that to include R & D costs to create your first platform, lure in a supplier network (EM have it), pass crash and emissions tests, and design a car (EM have a good one) people might actually want to buy in volume (65+ K reservations). There's also brand-launch marketing expenses (EM have road shows) and the cost of retail and service network to sell and service the cars (EM have PEP Boys). ". He also quoted Elon Musk saying "It is way harder to make the machine that makes the machine than it is to make the machine in the first place". In my opinion only, the ATVM "people" are struggling to know how much more demand will be forthcoming once the 65K reservations are met. If the demand tapered right after, then EM will have a hard time paying off their loans let alone make some money and stay afloat. Where EM stands right now, only them knows. I believe that the ATVM loan won't be enough even if approved due to the scale of work that needs to be done.
It is my understanding that the loan would be about half the required funding required for starting up production. It has never been claimed that it would be enough on it's own. But getting that will make getting the rest much easier.
I have wondered about this. I was under the impression the ATVM loan was the remainder needed to start production, but EM has underestimated the cost of everything else, why wouldn't they underestimate the cost of production?
Is the ATVM loan to be used only for production, or can it be used to complete R&D?
Is the ATVM loan to be used only for production, or can it be used to complete R&D?
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