Arcimoto Inc’s Revolutionary 3-Wheeler Could Juice its Stock

Arcimoto Inc's Revolutionary 3-Wheeler Could Juice its Stock

Arcimoto Stock Could Rally by 260% or More

During the heady days of the COVID-19 pandemic, with near-record-low interest rates fueling growth, tech stocks were the ones to beat. One of the biggest winners at the time was electric vehicle (EV) company Arcimoto Inc (NASDAQ:FUV).

During the March 2020 stock market crash, Arcimoto stock tumbled by approximately 45% and bottomed at $0.96 per share. Over the ensuing quarters, FUV stock came roaring back.

In less than a month, Arcimoto stock had erased all of its pandemic-fueled losses. In February 2021, it hit a record high of $36.80. Between the March 2020 stock market crash and February 2021, FUV stock rocketed by an eyewatering 3,733%.

Advertisement

As you can see in Arcimoto Inc’s chart below, it’s been mostly downhill since then, with the long-drawn-out fear of rising interest rates taking the air out of tech stocks.

Since February 2021, Arcimoto stock has lost more than 80% of its value. On the plus side, FUV stock is still trading up by more than 175% over its pre-pandemic days and is hovering around a support level of $5.00.

Wall Street likes what it sees with Arcimoto Inc. Of the analysts providing a 12-month share-price forecast, their average target is $14.50 and their high target is $19.00. This points to potential gains of 177% and 263%, respectively. Even their low estimate of $10.00 points to a possible gain of 91%.

Chart courtesy of StockCharts.com

About FUV Stock

Arcimoto Inc designs, develops, manufactures, and sells ultra-efficient EVs. While most EV companies focus on four-wheel vehicles, Arcimoto hopes to corner the three-wheel EV market.

The company has moved from development to production and expects to start larger-scale production in the second half of 2022. In February, it began operations at its new 200,000-square-foot manufacturing facility. Once the factory is at full capacity, the company expects to build 50,000 EVs per year. (Source: “Q2 2021 Report,” Arcimoto Inc, August 16, 2021.)

The company’s flagship product is its FUV, a two-seat urban vehicle that began production in September 2019.

Arcimoto Inc’s other EVs include the “Roadster,” a three-wheeler aimed at the recreational motorcycle segment; the “Rapid Responder,” for emergency, security, and law enforcement services; and the aptly titled “Deliverator,” for delivery services.

Arcimoto’s upcoming “Cameo” vehicle is designed for the film industry, allowing people to take better action shots. Then there’s the “Flatbed,” a pure-electric utility pickup truck that’s expected to launch this year.

Moreover, while Arcimoto Inc is known for three-wheel, open-cockpit EVs, the company recently increased its target market with the launch of the “Mean Lean Machine” (MLM), a three-wheel tilting e-trike based on the company’s patented technology. (Source: “Arcimoto Unveils the Mean Lean Machine,” GlobeNewswire, Inc., February 24, 2022.)

“With the MLM, you’ll be able to corner the same way you would on a regular bike with greater traction, more stability and better braking ability,” said Bob Mighell, Arcimoto’s “chief tilting officer.” (Source: Ibid.)

With a range of 200+ miles, the one- and two-seat tilting e-trikes are expected to enter the market in the fourth quarter of 2022.

The e-bike industry is ripe for the taking. In 2020, the e-bike market was valued at $23.9 billion. It’s forecast to hit $47.7 billion by 2026, expanding at a compound annual growth rate (CAGR) of 12.3%. (Source: “e-Bike Market-Growth Trends, Covid-19 Impact, and Forecasts (2022-2027),” Mordor Intelligence, last accessed March 2, 2022.)

Great Q3 Results

For the third quarter ended September 30, 2021, Arcimoto Inc announced that its revenue increased by 119% year-over-year to $1.5 million. It incurred a net loss of $11.5 million, or $0.31 per share. (Source: “Arcimoto Announces Third Quarter 2021 Financial Results and Provides Corporate Update,” GlobeNewswire, Inc., November 15, 2021.)

The company ended the third quarter of 2021 with $33.0 million in cash and equivalents.

Because Arcimoto is really just getting started when it comes to production, its financials are less important than what’s going on at the company. To that end, in the third quarter, Arcimoto Inc:

  • Produced 78 EVs
  • Sold a record 63 new EVs and one pre-owned EV
  • Made significant progress toward its goal of mass production
  • Marked its first full quarter of rental operations in San Diego, CA and Eugene, OR (its rentals were already available in Key West, FL and San Francisco, CA)
  • Launched its first vehicle-sharing initiative, in collaboration with REEF Technology Inc
  • Began accepting EV purchase reservations in Nevada (its EVs are also available in California, Florida, Oregon, and Washington)

Analyst Take

Arcimoto Inc has been around for a while, but it’s only beginning to ramp up the production of its EVs.

Over the last few quarters, the company has made massive progress on every front that’s critical for business growth. The company has opened a new factory, unveiled new products, and expanded its market regions. It’s also making plans for a future rideshare program.

With all this, the outlook for Arcimoto stock is bullish.