Greenpower1
8 months ago
You have to roll back the clock to 2008 (when Elio Motors was formed) then you'll see how it was a company that spent 4 years trying to get investments or partners. They actually got investments and it kept them going. In 2013, they leased the plant and took a loan out on the tooling and started taking reservations. Problem was, they defaulted on the lease and loan. Loan defaulted to 18% interest (on $26M) and fines and penalties for being late on lease payments. Then there was the jobs plan of having 1500 people employed by 2015. That resulted in a $7.5M fine. Right there, they were hoping the interest in the product was going to take off, yet it didn't. Not enough money coming in and too much going out. It became obvious, they were a sinking ship. I seen this in 2015. Yet others just thought they would somehow pull through.
Here we are 9 years later and I'm right. Paul is selling used cars in Phoenix, plant is leased out to someone else, no website and no communication from the company. Soon, it'll be delisted. Then we start the next group of delisted traders that hope the company will come back from the grave.
Greenpower1
8 months ago
Welded space frame costs way too much over a unibody. Show me one high volume cheap vehicle that is made from a space frame. Remember, they were to be making 250K of them per year and selling the final product (with full HVAC, power locks, power windows and three airbags) all for $6800 (then changed to $7450". So that's the criteria. At the time, same volume as a Honda Civic.
If you actually took the time to read the SEC filings (which you haven't) you'd see why they were hemorrhaging cash. They are out there for free on the internet. It just takes time to read them and you wish not to. I ask you this, "Why do you refuse too?"
Greenpower1
8 months ago
You do know they only raised $110M and needed $600M. So they ran out of cash.
Making those early mistakes of 18% interest on a $26M loan back in early 2013 or defaulting on the plant lease then paying penalties on that. How about the worker program where they needed to have 1500 jobs by 2015. That racked up another $7.5M. Let's not forget the lobbyists they paid to change all of the rules for autocycles. Yes, they needed to pay the people doing all of the redesign and their vendors and rent on the place in MI.
When you run out of money, you close shop and hope some other way of bringing in cash will happen. It didn't and thus, it's over. They have tried things like Crypto and even announcing an EV, yet no investment. Thus, they are playing out the clock and will go away.