Arcimoto Inc: 2021 Could Be Exceptional for This EV Stock

Arcimoto stockArcimoto Stock Up 1,040% Year-Over-Year & Just Getting Started

One of the best electric vehicle (EV) stocks out there is Arcimoto Inc (NASDAQ:FUV). It’s tough to say it’s overlooked or ignored, but it does get overshadowed by Tesla Inc (NASDAQ:TSLA).

Arcimoto had a spectacular year in 2020, with FUV stock soaring approximately 800%. In the opening weeks of 2021, Arcimoto stock advanced another 173%, hitting a record intra-day high of $36.80 in early February. But then the market-wide sell-off happened, which dragged FUV stock lower.

The broad-based sell-off wasn’t necessarily a bad thing. The stock market was a little overheated and investors took some well-deserved profits. That put Arcimoto stock in a better trading range. As of this writing, FUV stock is down roughly two percent year-to-date but still up a whopping 1,040% year-over-year.

And the outlook for Arcimoto stock remains bullish. Arcimoto Inc has:

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  • Reported strong full-year 2020 results
  • Expanded its product portfolio
  • Teamed up with DHL Express, Inc.
  • Expanded its sales into Florida, the company’s first presence on the East Coast
  • Unveiled its fourth and fifth product concepts: the “Cameo” and the “Arcimoto Roadster”
  • Entered pilot projects with Wahlburgers Key West, HyreCar, the City of Orlando, and others
  • Completed the acquisition of Tilting Motor Works, Inc., makers of a patented tilting three-wheel technology
  • Agreed to purchase a new manufacturing plant that will be used to make 50,000 units annually once fully operational

(Source: “2020 Full Year/Current,” Arcimoto Inc, March 31, 2021.)

FUV Stock Overview

Arcimoto designs, develops, manufactures, and sells ultra-efficient EVs. Whereas most EV companies are focused on traditional four-wheeled vehicles, Arcimoto has been cornering the three-wheeled market and taking on the electric car.

The company has been concentrating its efforts on five vehicles: “Fun Utility Vehicle” (FUV), Arcimoto Roadster, “Deliverator,” “Rapid Responder,” and Cameo.

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

In November 2020, Arcimoto Inc announced that it had begun developing the Arcimoto Roadster, an open-air, all-electric, three-wheeled road vehicle aimed at the recreational motorcycle segment. (Source: “Arcimoto Begins Development of the Roadster,” Business Wire, November 16, 2020.)

The Rapid Responder, which was designed for emergency, security, and law enforcement services, is in the pilot testing phase—as is the Deliverator, which, as its name implies, was designed for delivery services.

As noted above, the company also recently unveiled the Cameo, which is designed for the film industry and online influencers.

Strong 2020 Financial Results

For the fiscal year ended December 31, 2020, Arcimoto announced that its total revenue increased 120% year-over-year to $2.2 million. (Source: “Arcimoto Announces Full Year 2020 Financial Results and Provides Corporate Update,” Arcimoto Inc, March 31, 2021.)

The increased revenue in 2020 was largely driven by the sale of 97 FUVs, an increase of 110% over the prior year. This increase came in spite of production shutdowns and supply-chain interruptions due to COVID-19.

Arcimoto Inc reported a 2020 net loss of 18.1 million ($0.63 loss per share), compared to a net loss of $15.3 million ($0.85 loss per share) in 2019. Expenses increased in 2020 as the company upped its manufacturing capacity by 110% year-over-year and hired 38 new employees, a staffing increase of 40% over 2019.

Arcimoto ended the year with $39.4 million in cash and cash equivalents, compared to $5.8 million cash and cash equivalents as of December 31, 2019.

In 2020, Arcimoto Inc executed a series of above-market capital raises, garnering net proceeds of $52.9 million. The company also eliminated all non-equipment-financing debt ($3.9 million) through the retirement of convertible and senior secured notes.

“This last year has been an incredible challenge for us all,” said Mark Frohnmayer, founder and CEO. “As we look to the year ahead and emerge from the pandemic, our course is clear. 2021 is the year Arcimoto will lay the groundwork for its next decade of growth.” (Source: Ibid.)

Analyst Take

Despite the pandemic-related production shutdowns and supply-chain disruptions, 2020 was monumental for Arcimoto Inc.

It looks like 2021 will be even more transformational for Arcimoto stock as the company gears up to increase its production rate, launch new products, and scale up its new manufacturing facility.