What Is The Status Of The Atvm Loan?

[voyager]

I found one site really critical towards Elio: Gas2.org. What's the deal there?

Found this link that also refers to the SEC report:
http://www.ktbs.com/story/31392035/elio-motors-has-lost-53-million-according-to-sec-filing

 

[Marshall]

I found one site really critical towards Elio: Gas2.org. What's the deal there?

Found this link that also refers to the SEC report:
http://www.ktbs.com/story/31392035/elio-motors-has-lost-53-million-according-to-sec-filing

It's exactly what I would expect pre-production. All expenses and only an occasional sale of excess equipment for revenue. I think the commissioner lacks the perspective or the knowledge that startups always start out in debt and are risky ventures at best. There's nothing extraordinary going on and the debt is certainly not sufficient to prevent future profitability.

If Elio can get to $1000 profit per vehicle and 250,000 vehicles production per year, that's $250,000,000 of profit per year and that is the perspective to consider when evaluating start up costs. Even if it's half that, it's a fraction of ONE years worth of potential profit where multi year paybacks are common and expected.

Now if we add $300,000,000 in additional debt (ATVM PLUS) to get production to the ~$60,000,000 for a debt at start of production of $360,000,000, we're only talking about a year and a half to three years profit to wipe out the debt. Considering a typical mortgage on a house is 20 to 30 years, it's a great rate of return, particularly in a deflationary financial environment.

 

[Rickb]

It's exactly what I would expect pre-production. All expenses and only an occasional sale of excess equipment for revenue. I think the commissioner lacks the perspective or the knowledge that startups always start out in debt and are risky ventures at best. There's nothing extraordinary going on and the debt is certainly not sufficient to prevent future profitability.

If Elio can get to $1000 profit per vehicle and 250,000 vehicles production per year, that's $250,000,000 of profit per year and that is the perspective to consider when evaluating start up costs. Even if it's half that, it's a fraction of ONE years worth of potential profit where multi year paybacks are common and expected.

Now if we add $300,000,000 in additional debt (ATVM PLUS) to get production to the ~$60,000,000 for a debt at start of production of $360,000,000, we're only talking about a year and a half to three years profit to wipe out the debt. Considering a typical mortgage on a house is 20 to 30 years, it's a great rate of return, particularly in a deflationary financial environment.

The ATVM Loan approval is not enough funding to start production. A lending institution approving the typical 20-30 year mortgage on a house requires a down payment, the house as collateral, and proof that the loan can be repaid. It certainly should not differ for EM's ATVM approval process. The ATVM folks are waiting for evidence that the loan can be repaid.

 

[W. WIllie]

The application has to go through numerous other "regulatory" government agencys before approval.
Simply put.

Willie

 

[LillyMayPatterson #1685 & #5648]

Next month (August) the application will be TWO years old?

 

[Ty]

The application has to go through numerous other "regulatory" government agencys before approval.
Simply put.

Willie

Aptera made it through the wickets... and failed. (Those wickets aren't TOO thorough, huh?)

 

[Coss]

... A lending institution approving the typical 20-30 year mortgage on a house requires a down payment, the house as collateral, and proof that the loan can be repaid. ...

No they don't; I got my house in 2006 with 0 down for a $225K house; my daughter and EX hubby got their house in 2010 with 0 down; with current hubby they got their house ($270K) with $5K down; so the thing about a bank always requiring a down isn't always correct.

 

[Maurtis]

It was a lot easier before the 2008 crash. We bought in 2005 with $0 down. When we started building a new house in 2014, we could still get $0 down but a better interest rate and incentives with 10% down. But your point still stands, no down payment needed even now. A friend of ours paid $0 out of pocket for her new house, even closing costs were rolled in to her mortgage.

 

[Ty]

It was a lot easier before the 2008 crash. We bought in 2005 with $0 down. When we started building a new house in 2014, we could still get $0 down but a better interest rate and incentives with 10% down. But your point still stands, no down payment needed even now. A friend of ours paid $0 out of pocket for her new house, even closing costs were rolled in to her mortgage.

I bought last month with $0 down... Using my VA loan guaranty, of course.

 

[Rickb]

No they don't; I got my house in 2006 with 0 down for a $225K house; my daughter and EX hubby got their house in 2010 with 0 down; with current hubby they got their house ($270K) with $5K down; so the thing about a bank always requiring a down isn't always correct.

It is now. The regulators have tightened loan requirements as a result of the 2008 housing crash. Many failed mortgages, homes repossessed by the banks, crashing housing market, government bailout for the banks that shouldn't have made the loans to people that couldn't afford the already overpriced homes in the first place.

I favor tighter financial regulations to protect people from realtors, the lenders, risky new startups, and themselves. Back in the day my bank was happy to loan us more money on our first 2 homes than I was comfortable with in terms of a monthly repayment schedule.