Before we get to this week’s Three Wheeling Blog, we wanted to share some thoughts that may help you navigate some recent information that was presented in a misleading fashion about our most recent SEC filing.
First, the accounting term “accumulated deficit” is defined as the amount a business reports in the stockholders’ equity section of its balance sheet when it has paid more dividends and generated more net losses than profits over the life of the business. In the case of many startups like Elio Motors, the accumulated deficit stems from expenses we have incurred during these years of developing the Elio, such as research and development, engineering and other business activities. Accumulated deficit is not debt as was represented in various articles and is not “owed” per se. We have debt on our books, as most startups do, which is normal when growing a business like Elio Motors.
As an interesting piece of information to show you the impact of how information is presented, Tesla Motors, a company starting up in the same space, has an accumulated deficit of over $2.8 billion, according to its Form 10-Q for the quarter ended September 30, 2016. Starting a business, especially an innovative transportation company in a capital intensive industry, takes a lot of resources to get a product ready for sales to the public.
Happy Friday Elio’ers! We are officially in the thick of winter. Summer may be the most popular time of year, but winter definitely has its advantages. For outdoorsy types, a winter wonderland is the perfect playground for skiing, snowboarding, snowshoeing, sledding, etc.! Also, cold winter temperatures mean that we’re in the thick of the NFL playoffs. It may be cold and snowy in many places across the country, but let’s focus on the positives!
Whether you’re a weekend winter warrior or a cold weather couch potato, you probably are on the move year-round. Come blizzard or high temperatures, we need to get where we need to be, and nasty weather is not a good enough excuse. When it comes to the Elio, we get a ton of questions about its performance in the snow. And why not? At first glance, our vehicle has a unique configuration and an ultra-affordable base price, so we understand why the questions come rolling in. So, let’s take a look at how the Elio performs in the snow and cold.
First, let’s look at the passenger cabin. The Elio comes standard with A/C, heat, and defrost. As part of our E-Series testing, we sent the E1-D to our HVAC supplier RedDOT in Seattle. They put the vehicle through the ringer, exposing it to extreme hot and cold temperatures. RedDOT’s testing showed that the Elio’s HVAC is more than up to the task of keeping Elio drivers warm and toasty on winter drives. So, no worries when it comes to the inside!
And the outside? We’ve got you covered. Our vehicle has tremendous ‘traction action’ which lets it make easy work of snow. Having the engine in the front places most of the weight over the front two tires, giving us a low center of gravity. Add in front wheel drive, traction control, stability control, and ABS and you’ve got a winning combination.
While our plant in Shreveport used to build Hummers, you wouldn’t confuse the Elio with a heavy-duty SUV. Our vehicle will handle snow like many other small front wheel drive vehicles. While our vehicle won’t replace a four-wheel drive tank, it will be able to handle reasonable amounts of snow.
We’ve received quite a few questions about possible options that will improve how the Elio performs in the snow. Folks in Alaska and North Dakota have asked if block heaters, chains, and other options will be available. The simple answer is…yes! As a part of our ePlus option program, we are looking to add a ton of different winter options, and a winter package is definitely on that list. If there’s a market for an option it will be available!
Elio Preview Tour:
January 14- 22: Detroit, MI – North American International Autoshow – Cobo Center
Thanks for your support and have a fantastic weekend!