Saleen Automotive, Inc. (fka SLNN)

[AutoInvestor]

If there was a sufficient amount of buyers all the converted
shares would transact to cash and the stock price would go
up not down. The fact that the share price has to drop 22%
in one day just to find a buyer tells you that.

As for Saleen's need for funding they have averaged a monthly
loss of ($812K) over the last twelve months. That includes revenue.
There is no possibility that they are generating positive cash
flow. ZERO possibility for the following reasons:

1) Saleen does not have enough cash to buy enough
Inventory to produce enough cars to make a profit
Even if they made $10K gross margin per car tuned they would
Need to produce 81 more cars per month than
they have averaged over the last twelve months .
Saleen has averaged 9 car sales per month so
their break-even point is about 90 cars per month
if they made $10K Gross Margin per car (which they do not).

2) the White Label model will only lose money.
There is no profit in a $42K Saleen Mustang.

3) the Debt needs to be paid down. The IRS, Bank
and Vendors will have to be paid and Saleen needs
funding to make the debt payments

4) Saleen cannot produce 90 cars per month to break-even
with 30 employees and only 6 production workers.
impossible. Even if they had the parts (which they do not )
they are not capable of tuning that many cars in a
cellular building method.

5) Saleen is delinquent on terms with it's suppliers so
they are on COD terms. They cannot buy parts without
cash.

6) Saleen has to build approximately 19 cars
which they have already been paid $1.1M
for. Where is the cash to build these cars?

7) Saleen has to pay the Ford Dealership that
is suing them for stealing 7 chassis. Eventually,
Ford Motor Company will jump in and freeze
Saleen out of all their dealerships by not allocating
anymore shipments of Mustangs to Saleen.

There are many more reasons Saleen needs financing .
Even a fast growing profitable company needs funding
if Sales jump up quickly. It is easy to say that without a
funding source, Saleen is dead.