Leading the Way in The Hot Electric Vehicle Sector, Arcimoto (NASDAQ: FUV)

Leading the Way in The Hot Electric Vehicle Sector, Arcimoto (NASDAQ: FUV)

Arcimoto (FUV) Shares Continue to Advance Toward Their Potential

Good day everyone,

Today we are continuing coverage of Arcimoto, Inc. (NASDAQ: FUV), a manufacturer of electric three wheeled hybrid type vehicles. They are producing three models, a recreational vehicle (FUV), a model for making deliveries (Deliverator) and an emergency response vehicle (Rapid Responder). All can be licensed for use on public roads.

Current price $5.40 per share

FUV shares have done well since we reported on them the 22nd of June, gaining 50% as of this report. Congratulations to our members who have realized gains. We love this story, sector and company.

We wanted to highlight a few of the positives we see in FUV shares that could drive the price to higher levels.

Revenues: The company started generating revenues late last year and the revenues have been on a solid ramp-up. With that said, production at their manufacturing facility has been shut down or restricted since March due to coronavirus. Restrictions due to the pandemic are beyond the company’s control. More importantly, FUV has a plan in place to build their production ramp to 200 vehicles per week by next year. Their EV models sell for $20K+ so we can see a pro-forma revenue goal of $200M annually.

Balance Sheet: The company recently eliminated all debt from their balance sheet except for a $1.6M capital equipment lease. When a company eliminates debt, and in the FUV case, $5.6 million of debt and liabilities has been extinguished from the Company’s balance sheet, they also eliminate the costs of carrying that debt. We always like the balance sheets with zero long term debt.

Share structure: FUV only has 24.49M shares outstanding and 13.94M shares in the public float. The company just announced a capital raise proposal to sell 1.7 million shares to institutional investors. If the sale comes to fruition it will increase the outstanding shares by 7% to 26.2M shares. This is great news for the company as it needs to finance the ramp-up in production. The impact on the outstanding share count is negligible and there will not be an interest expense to negatively impact the bottom line. We feel that the common stock sale (at $5.00 per share) may be preferential to adding costly long-term debt.

HyreCar collaboration: The deal with HyreCar gives FUV a solid potential for increased vehicle sales and a possible secondary revenue stream. HyreCar is a company that connects vehicle owners with folks that want a short-term rental, through their website. FUV vehicles could be rented for short term delivery service or for ride sharing. While motorcycle sales constitute 3% of vehicle sales, they only account for .06% of miles driven which means they sit idle a lot of the time. Consumers may be more inclined to purchase an EV from Arcimoto if they knew it could also generate a revenue stream for them.

Insider ownership: This is one of the characteristics we look hard at in any company, sometimes more importantly than their financial metrics. The rate of insider ownership at FUV is 43.63% and that is a large position. Investors tend to look toward management favorably when shareholder value is a key goal of the company. When the insiders at a company hold such a large position as 43.63% their dedication to shareholder value is tacit.

The move toward electric vehicles will continue at a rapid pace. The global Electric Vehicle Market Size was estimated at $162.34 Billion in 2019 and is expected to reach $802.81 Billion by 2027, at a CAGR of 22.6 percent. We know that 3% of all registered vehicles are motorcycles but we don’t know how much that 3% could grow if the motorcycles were electric and had a body. Regardless, 3% of $802.81 B is still $24 billion.

FUV is at the forefront of this change in transportation. FUV is ready to exploit the market and reap the benefits. We believe the current market cap of $133M may experience significant growth.

We will have more on this one soon,
The Traders News Group


Privacy Policy and Disclaimer
Your Consent
By using our site, you consent to our online privacy policy and disclaimer.
Do we disclose any information to outside parties?
We hate spam and we do not sell, trade, or otherwise transfer to outside parties your personally identifiable information.
What information do we collect?
We collect information from you when you subscribe to our newsletter or fill out a form. This includes your email address only.
When registering on our site, as appropriate, you may be asked to enter your: e-mail address
What do we use your information for?
When we collect your email it is used for one purpose to send you the free information you requested about small cap stocks. Please read our disclaimer carefully before viewing our emails.
Your information, whether public or private, will not be sold, exchanged, transferred, or given to any other company for any reason whatsoever, other than for the express purpose of delivering the information on small cap stocks that you requested.
We send periodic emails
The email address you provide may be used to send you information, respond to inquiries, and/or other requests or questions.
How do we protect your information?
We implement a variety of security measures to maintain the safety of your personal information when you enter, submit, your email address. We use a secure third party to send email to you.
Because we value your privacy we have taken the necessary precautions to be in compliance with the California Online Privacy Protection Act. We therefore will not distribute your personal information to outside parties without your consent.
Online Privacy Policy Only
This online privacy policy applies only to information collected through our website and not to information collected offline.
Contacting Us
If there are any questions regarding this privacy policy or disclaimer you may contact us using the information below.
Traders News Source is a wholly owned subsidiary of Traders News Source LLC, herein referred to as TNS LLC.
Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The disclaimer is to be read and fully understood before using our services, joining our site or our email/blog list as well as any social networking platforms we may use.
PLEASE NOTE: TNS LLC and its employees are not a Registered Investment Advisor, Broker Dealer or a member of any association for other research providers in any jurisdiction whatsoever.
Release of Liability: Through use of this website viewing or using you agree to hold TNS LLC, its operators owners and employees harmless and to completely release them from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. TNS LLC encourages readers and investors to supplement the information in these reports with independent research and other professional advice. All information on featured companies is provided by the companies profiled, or is available from public sources and TNS LLC makes no representations, warranties or guarantees as to the accuracy or completeness of the disclosure by the profiled companies. None of the materials or advertisements herein constitute offers or solicitations to purchase or sell securities of the companies profiled herein and any decision to invest in any such company or other financial decisions should not be made based upon the information provide herein. Instead TNS LLC strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D. TNS LLC is compliant with the Can Spam Act of 2003. TNS LLC does not offer such advice or analysis, and TNS LLC further urges you to consult your own independent tax, business, financial and investment advisors. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled.
The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results.
In preparing this publication, TNS LLC has relied upon information supplied by its customers, publicly available information and press releases which it believes to be reliable; however, such reliability cannot be guaranteed. Investors should not rely on the information contained in this website. Rather, investors should use the information contained in this website as a starting point for doing additional independent research on the featured companies. TNS LLC’s parent company has been compensated eleven thousand five hundred dollars cash via bank wire by venado media llc for this week’s coverage of fuv. The advertisements in this website are believed to be reliable, however, TNS LLC and its owners, affiliates, subsidiaries, officers, directors, representatives and agents disclaim any liability as to the completeness or accuracy of the information contained in any advertisement and for any omissions of materials facts from such advertisement. TNS LLC is not responsible for any claims made by the companies advertised herein, nor is TNS LLC responsible for any other promotional firm, its program or its structure.
TNS LLC is not affiliated with any exchange, electronic quotation system, the Securities Exchange Commission or FINRA. TNS LLC is not a Broker/Dealer and does not engage in high frequency trading.