Arcimoto, Inc has established a unique business model focused on building Fun Utility Vehicle, Rapid Responder, and Deliverator are some of the lightest, most affordable, and most appropriate electric vehicles suitable for everyday transport. Their business model and compelling product profile are complemented by new technologies and patterns of mobility that together raise the bar for environmental efficiency, footprint, and affordability.
Company is engaged in all the stages, including the design, development, and pre-production of these ultra-efficient three-wheeled electric vehicles.
Arcimoto is currently developing three vehicle products based on the Arcimoto Platform: The Fun Utility Vehicle (FUV), the Rapid Responder, and the Deliverator. While intended to serve very different market segments, an estimated 90% of the constituent parts are the same between our three initial products.
The auto industry as a whole and more importantly this particular segment is all set to change significantly with new emission norms, regulations promoting electric vehicles and giving a massive boost to the overall electrical vehicle ecosystem, and overall thrust on an affordable, practical, and joyful pure electric vehicle.
Although the industry is still at a nascent stage, it has immense potential, as it is not just about providing relatively cleaner transportation option in overly crowded and polluted cities but a natural transition towards a healthy and more affordable lifestyle. The EV buzz is very much in the air now.
From the Company’ perspective, while the demand for Arcimoto’s ultra-efficient and exciting products has already zooming. The management anticipates that the overall demand would continue to surge as the Company delivers its retail FUVs to the early customers, open rental hubs in key destinations, and pilot new vehicle models including the Rapid Responder and Deliverator.
Now that there is clear visibility with regard to where the Company is heading, the Company plans to Begin distribution from three west coast states of Washington, Oregon, and California and building supply chains alongside product development. Once Retail Series production is underway, FUV would enter into nation-wide distribution.
The company is about to begin retail production after spending almost a decade on developing and refining eight generations of a new three-wheeled electric vehicle platform. For its upcoming launch, Arcimoto has already completed reservations for the first three months of planned production capacity of 100 vehicles, including the collection of $5,000 non-refundable reservation fees.
Recent announcements and milestone:
- FUV recently announced the financial results for the first quarter ended March 31, 2019.
- Pre-orders for its FUV has increased to 3,883 units as of March 31, 2019, as compared to 3,217 units as of December 31, 2018, and 2,461 units as of March 31, 2018.
- In addition to the introduction of two additional, purpose-built vehicles, the Company announced anticipated deliveries of its flagship Fun Utility Vehicle in June 2019
- The FUV was showcased at several notable industry events across the country, including the Consumer Electronic Show (CES) in Las Vegas, as well as the 31st Annual ROTH Investor Conference in Dana Point, CA.
Multiple near-term catalyst and outlook:
- In the much nearer term, the goals for this year are to deliver hundreds of Evergreen edition FUVs to the company’ first customers.
- FUV has already collected $5,000 non-refundable reservation deposits for its first three months of anticipated build. The company is going to be continuing to flush that out through the end of the year.
- At the same time, FUV is expected to complete the Rapid Responder, complete the Deliverator, flush out the full set of options for the vehicle, and get ready for full-fledged mass production.
- The overall goal of the company is to actually make a meaningful difference in terms of global greenhouse gas reduction, and Arcimoto is expected to do that by shipping hundreds of thousands of Arcimoto vehicles every single year in the out years.
About the Company: Headquartered and manufactured in Eugene, Oregon, Arcimoto, Inc. (NASDAQ: FUV) is devising new technologies and patterns of mobility that together raise the bar for environmental efficiency, footprint, and affordability. Available for pre-order today, Arcimoto’s Fun Utility Vehicle, Rapid Responder, and Deliverator are some of the lightest, most affordable, and most appropriate electric vehicles suitable for everyday transport.
- Fun Utility Vehicle: Arcimoto’s flagship product is the Fun Utility Vehicle. The FUV delivers a thrilling ride experience, exceptional maneuverability, comfort for two passengers with gear, rockstar parking (three to space), and ultra-efficient operation, all at an affordable price.
- Evergreen Edition: Arcimoto plans to enter the market with the Evergreen Edition FUV. The management believes individuals should be able to choose more efficient, more affordable, and lighter footprint mobility solutions so that the company can participate in the transition to a sustainable transportation future.
- Rapid Responder: The Rapid Responder was announced on February 15, 2019. The pure-electric Rapid Responder is developed on the Arcimoto platform, and designed for specialized emergency, security and law enforcement services at a fraction of the cost and environmental impact of traditional combustion vehicles. The Rapid Responder aims to deliver first responders to incidents more quickly and affordably than conventional emergency response vehicles.
- Deliverator: Development of the Deliverator was officially announced on March 19, 2019, with the reveal of the first Deliverator prototype. The Deliverator is pure electric, a last-mile delivery solution designed to more quickly, efficiently, and affordably get goods where they need to go.
The company plans for the Deliverator to be customizable to carry a wide array of products, from pizza, groceries, and cold goods to the 65 billion parcels delivered worldwide annually. The management anticipates that the first production Deliverators will be delivered in 2020
Robust Industry perspective:
- Arcimoto’ timing in entering this exciting new market could not have been better. The automotive industry is undergoing transformational changes throughout, with legacy automakers being disrupted by new EV entrants who are uniquely providing aspirational electric vehicles that consumers actually want to purchase.
- Arcimoto is going after the vehicle market. Moreover, the vehicle market is a big market, 70 million cars produced annually, it’s a multi-trillion-dollar market space, and what the company is looking at doing is attacking various segments of the overall vehicle market with a solution that is more efficient and lower-cost for those particular segments. So the company is all set to address multiple segments of the vehicle market with vehicles built on a single disruptive platform.
- Demand for the Retail Series Arcimoto FUV has continued to surge. As of December 31, 2018, the company had 3,217 FUV pre-orders with small refundable deposits, representing an increase of 983, or 44%, from the 2,234 pre-orders as of December 31, 2017. As of March 29, 2019, Arcimoto had 3,883 pre-orders.
Robust Industry outlook is driven by rapidly growing EV market:
- About 840,000 EVs are on the road in the United States.
- Electric vehicles emit 54% less carbon dioxide per mile than the average new gasoline car and offer notably lower operating costs, based on U.S. EPA national electricity generation data.
- The cost of the battery is the primary driver of the higher up-front cost of EVs as compared to legacy ICE (internal combustion engine) vehicles – and this cost is rapidly dropping.
- Bloomberg New Energy Finance estimates that EV batteries cost an average of $273/kWh in 2016, as compared to $1,000/kWh in 2010.
Financial results: Revenue and Gross Margin
Total revenues during the quarter were $2,645 as compared to $656 in the first quarter of 2018. Sources of revenue in the first quarter of 2019 were merchandise sales and metal fabrication revenue.
The Company incurred a net loss of $3.1 million, or ($0.20) per share in the first quarter of 2019, compared to a net loss of $2.0 million, or ($0.13) per share, in the first quarter of 2018.
Form a Liquidity and financial flexibility standpoint; the Company has secured a $3.4 million financings in March 2019, lending support to fund its capital expenditure requirements and continue operations.
The Company had $4.9 million in cash and cash equivalents as of March 31, 2019, compared to $4.9 million in cash and cash equivalents as of December 31, 2018.
Risk Factors & Stock Influences:
- The company’ ability to maintain liquidity/financial flexibility to support its ongoing and upcoming ventures.
- Company’ upcoming performance especially with the Fun Utility Vehicle (FUV), and the Rapid Responder
- The overall performance of the economy and the impact of the impact of the US-China trade outlook.
- Company’ performance in several of its key markets in 2019 will set the stage for the next phase of FUV’s growth in corporate evolution.
- The company operates in a rapidly changing fast paced industry. Therefore, it must continue to launch, innovate, and enhance products to maintain its substantial market share.
- On Thursday, 23th, 2019, FUV is trading at $3.015 (up by over 0.166%), with a robust volume of 158,996 shares exchanging hands. Market capitalization is $49.204 million. The current RSI is 30.05
- In the past 52 weeks, shares of FUV have traded as low as $1.5530 and as high as $7.35
- At $3.01, shares of FUV are trading below its 50-day moving average (MA) at $4.00 and below its 200-day moving average (MA) at $3.60
- The present support and resistance levels for the stock are at $2.86 & $3.28, respectively.
About Arcimoto, Inc.
Headquartered and manufactured in Eugene, Oregon, Arcimoto, Inc. (FUV) is devising new technologies and patterns of mobility that together raise the bar for environmental efficiency, footprint and affordability. Available for pre-order today, Arcimoto’s Fun Utility Vehicle, Rapid Responder, and Deliverator are some of the lightest, most affordable, and most appropriate electric vehicles suitable for everyday transport. For more information, please visit www.arcimoto.com.
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