Arcimoto shuts down factory, stock plunges as it warns of bankruptcy

[FutureBoy]

Arcimoto shuts down factory, stock plunges as it warns of bankruptcy

January 18, 2023

Credit: Arcimoto

Electric vehicle (EV) maker Arcimoto announced on Wednesday it has shut down production at its factory in Oregon, saying that they are nearly out of money. To help try and keep them afloat the company said in a regulatory filing it was moving to sell additional shares and that they may have to enter bankruptcy protection.

According to the regulatory filing Arcimoto (FUV) is selling $12 million in additional shares at $3 each, a figure that was less than half of the company’s trading value at the close of markets on Tuesday. The company added however that it would still need “substantial” additional funding, warning that it may not be available “on acceptable terms.”

As a result the stock plunged more than 50% and is currently hovering around $2.50 per share.

“We have halted our production of vehicles and will require substantial additional funding to resume production, which may not be available to us on acceptable terms, or at a l, and, if not so available, we will be required to cease our operations and/or seek bankruptcy protection.”

Arcimoto makes a three-wheel electric vehicle (EV) it calls the Fun Utility Vehicle (FUV) at its facility in Eugene, Oregon which opened early last year in the midst of the pandemic. Due to its limited mass-market appeal the company has struggled to increase sales, delivering just 115 FUVs to customers over the last six months, and making only 252 during that same time period.

The company attempted to expand the market for the FUV to first responders, creating a prototype ‘Rapid Responder’ that was intended for use by police, fire departments, campus security teams and others. It also created the ‘Deliverator’ aimed at last and local mile deliveries.

Arcimoto recently had a valuation of more than $1 billion. After Wednesday’s announcement that value has plunged to around $6.5 million.

 

[FutureBoy]

Arcimoto has had a few appearances here in our group. I know there are some fans.

So sad to see this development.

 

[Ogre]

I saw that. It’s a local business, I have a friend who worked there. Not sure if he still does or not.

My wife and I had talked about getting one to pair up with the Cybertruck.

Seriously bummed.

 

[WildhavenMI]

TBH, I didn't know Arcimoto started deliveries - and I literally have a google calendar where I track these things (specific dates for EV reveals/releases/first deliveries/etc.). I looked at these like 2 years ago and assumed that it'd either never get to market but if it did it'd be 2 years of backorders.

 

[NJturtlePower]

Not so shocked.

Little market for expensive EV toys at literally the worst of economic times in a decade for development and production of such. ?‍

Aptera will be next! ?

 

[JBee]

Tadpole tandem trike is a good format but the Arcimotor execution lacks the specific advantages and performance it could have, and is really not attractive in design. It's important that a vehicle either does its thing well or looks good doing it, or both. Mediocre doesn't cut it nowadays, at least add something quirky to make it stand out.

As for the financials: I see too many parts to be profitable. That body could be a single cast fibreglass or CF, even a rotomoulded poly cast with embedded frame would of worked. Assembly time under 3 hours etc. There's so many things it doesn't have already, which it should of used to its advantage.

 

[android04]

Not so shocked.

Little market for expensive EV toys at literally the worst of economic times in a decade for development and production of such. ?‍

Aptera will be next! ?

I don't think Aptera will have the same fate. I have one reserved, even though I'm not sure I will end up getting it. I would never buy the Arcimoto because I see it as an expensive toy for a lifestyle that I'm not into. The Aptera, on the other hand, is a practical commuter vehicle. I drive 113 miles every day and it would be almost perfect for me. The only drawback for my use case is that it can't tow or haul big stuff. Are least with my Model 3 I tow trailers.

Even if I don't end up getting the Aptera for myself, I'd consider getting it for my parents as long as it's not too expensive. They are retired and don't drive too often or too far. They would just be able to recharge with the built-in solar panels.

 

[Ogre]

TBH, I didn't know Arcimoto started deliveries - and I literally have a google calendar where I track these things (specific dates for EV reveals/releases/first deliveries/etc.). I looked at these like 2 years ago and assumed that it'd either never get to market but if it did it'd be 2 years of backorders.

They’ve been delivering their FUV for quite some time, but in small volume. I think the big problem is margins. Talked to my buddy who works there and there were only a few SKUs they made money on.

They were only producing a couple hundred a quarter, you can’t run a factory on that volume unless you have a very high margin.

 

[happy intruder]

Not so shocked.

Little market for expensive EV toys at literally the worst of economic times in a decade for development and production of such. ?‍

Aptera will be next! ?

not sure about that......I have a reservation and I too don't know about delivery...Looks like another year to 18 months.....Their immediate problem facing the production start, is the need $50 million for tooling and equipment associated with production......That scares me...

 

[Rutrow]

They will never recoup the money they've spent on development and marketing. At best they'd be popular rental/loaner vehicles in vacation locales and resorts, but that volume will never reach what they'd need to be solvent. I feel sorry for the investors who bought in at $500 and $600/share.

 

[charliemagpie]

What a disaster for some.

Just goes to show how many people can't tell the difference between a niche product and what will be the world's biggest company.

No wonder 'news' outlets can have their way with the public.

 

[flowerlandfilms]

I think the Arcimoto looked fun, but I already have a motorcycle which does what it does better.

 

[Rutrow]

I think the Arcimoto looked fun, but I already have a motorcycle which does what it does better.

With two wheels you can steer around pot holes, with four wheels you can straddle them. But with three wheels you're guaranteed to hit 'em all.

 

[Ogre]

With two wheels you can steer around pot holes, with four wheels you can straddle them. But with three wheels you're guaranteed to hit 'em all.

The big advantage of the FUV versus a moto Is space and comfort. The Arcimoto is a lot easier to drive than a motorcycle too.

It’s more like a tandem smartcar than a motorcycle. You also have a roof so when it’s raining it’s not completely exposed.

 

[Cyberman]

With two wheels you can steer around pot holes, with four wheels you can straddle them. But with three wheels you're guaranteed to hit 'em all.

Wow, you are so right. Never thunk about it like that.