Arcimoto Inc: EV Stock Up 265% YoY; Soars on Blockbuster Q3 Results

Shares of Arcimoto Inc Up 480% in 2020 & Could Still Double

Arcimoto Inc (NASDAQ:FUV) is an electric vehicle (EV) company I last wrote about in July, when FUV stock was trading at $5.80. At that time, it was an overlooked EV stock that had taken a proverbial back seat to its flashier peers.

That may no longer be the case, and early-bird Arcimoto stock investors couldn’t be happier.

How could they not be pleased with the 265% gain that FUV stock has made over the last 12 months? But that’s nothing compared to the 480% gain since the start of 2020 and the 918% gain since March.

Meteoric gains indeed, but as you’ll soon see, Arcimoto stock is just getting started.

Chart courtesy of StockCharts.com

FUV Stock Overview

Arcimoto designs, develops, manufactures, and sells electric vehicles.

Unlike most EV companies, which are focused on traditional four-wheel cars and trucks, this company has been cornering the three-wheeler market while taking on the electric car. (Source: “Arcimoto Spring 2020,” Arcimoto, Inc, last accessed November 23, 2020.)

Since going public on the Nasdaq in September 2017, Arcimoto Inc has built a state-of-the art production facility in Eugene, OR, completed regulatory compliance for its “Fun Utility Vehicle,” initiated production in September 2019, and has been delivering vehicles to early customers.

Pilot programs are underway with the “Deliverator” (three-wheeled vehicle aimed at the local delivery market) and “Rapid Responder” (three-wheeled vehicle designed for first responders). Both vehicles were expected to be in production by the end of 2020.

On November 16, FUV announced that it had begun development of the “Roadster,” a three-wheeled model aimed at the recreational motorcycle market. (Source: “Arcimoto Begins Development of the Roadster,” Arcimoto Inc, November 16, 2020.)

The pricing, specs, and availability of the Roadster will be announced at a later date.

Strong Third-Quarter Results

On November 16, Arcimoto announced that its revenue for the third quarter ended September 30 came in at $683,895, a significant increase over the third-quarter 2019 revenue of $33,211. (Source: “Arcimoto Reports Third Quarter 2020 Financial Results and Provides Corporate Update,” Business Wire, November 16, 2020.)

The big increase in revenue was a result of the resumption of vehicle production and customer deliveries, with 31 vehicles being delivered in September alone.

From the start of production in September 2019 to September 30, 2020, Arcimoto  has produced 136 production vehicles in total, up from the 57 produced as of December 31, 2019.

Arcimoto Inc reported a third-quarter net loss of $4.6 million ($0.15 per share), compared to a net loss of $4.0 million ($0.22 per share) in the same prior-year period.

The company ended the third quarter with cash and cash equivalents of $17.0 million, up from $5.8 million as of December 31, 2019.

“[Year-to-date] September 30, 2020 revenue surpassed every prior full year, and our balance sheet is the strongest it has been in the company’s history,” said Douglas Campoli, Arcimoto’s CFO and treasurer.

“While making progress on every front, we maintained Arcimoto’s core financial mandates of fiscal discipline and capital efficiency.”

Other recent highlights include:

• Resuming production and delivery efforts
• Teaming up with DHL International GmbH to enable the nationwide home delivery of Arcimoto vehicles
• Launching multiple high-visibility pilot programs of Arcimoto vehicles, including a promotional “Futbol Utility Vehicle” for the Baltimore-Maryland 2026 World Cup host committee and a “Wahlburger Deliverator” for the Wahlburgers fast-food chain
• Securing a $10.0-million common-stock-only registered direct offering to strengthen the company’s balance sheet
• Collaborating with industry partners in a push toward mass production
• Reporting the continuation of a quarter-over-quarter net increase in pre-orders
• Beginning development of the Roadster

Analyst Take

Arcimoto, Inc. is one of the most interesting EV companies out there right now. Thanks to a transformational year, Arcimoto stock has been on a tear, up 48% in 2020.

In the third quarter, the company launched multiple pilot programs, continued to collaborate with industry experts, teamed up with a global logistics company to prepare for the delivery of its products, and advanced long-term growth and development programs.