Arcimoto

[Rickb]

I can’t get the official word on production status from Arcimoto, but Kat is knowledgeable, an early adopter FUV owner, and close to the action in Eugene, OR. Perhaps another three wheeler bites the dust or the needed funding saves the day. We wait for the official word on Friday.

 

[RSchneider]

If they have stopped producing, any current stock will still be sold I imagine. Not that that affects the investment trajectory.

What was thier mistake in all of this? Underpricing or over-estimating? or?

It costs too much to make the product. It’s in the SEC filing. In a nutshell, about $60k to sell a $20k unit (this is counting the cost of the labor, energy and parts that goes into each unit). Volume won’t solve that. I already posted that they need to move to the SE and be close to other suppliers, cheaper labor and more friendly tax incentives. Eugene is not the place for that. Just go to Greenville/Spartanburg SC and you’ll see.

They are trying to stop the bleeding but they need to make a change. Just printing more money will not help unless they move, fix their manufacturing inefficiencies, unload TMW and center on a flex Deliverator along with full doors.

 

[Rickb]

This Electrek Here’s Why article makes good sense to me. I think it’s true of the enclosed three wheeler concept in general…….no market demand to justify mass production and affordability. It’s a niche market for enclosed trikes. Even the hardcore biker demographic wants the feel of an open air ride. The FUV was a put a smile on your face blast to drive.

Wild 3-wheeled electric vehicle teetering on brink of bankruptcy. Here's why

Arcimoto was once the darling of the electric vehicle startup world, riding a green wave of EV investments to a...

electrek.co

 

[RSchneider]

I can’t get the official word on production status from Arcimoto, but Kat is knowledgeable, an early adopter FUV owner, and close to the action in Eugene, OR. Perhaps another three wheeler bites the dust or the needed funding saves the day. We wait for the official word on Friday.

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Here’s the link: https://www.oregonlive.com/silicon-...s-of-potential-bankruptcy.html?outputType=amp

 

[Rickb]

It costs too much to make the product. It’s in the SEC filing. In a nutshell, about $60k to sell a $20k unit (this is counting the cost of the labor, energy and parts that goes into each unit). Volume won’t solve that. I already posted that they need to move to the SE and be close to other suppliers, cheaper labor and more friendly tax incentives. Eugene is not the place for that. Just go to Greenville/Spartanburg SC and you’ll see.

They are trying to stop the bleeding but they need to make a change. Just printing more money will not help unless they move, fix their manufacturing inefficiencies, unload TMW and center on a flex Deliverator along with full doors.

Apparently the real problem is the lack of market demand to justify mass production required to bring the price down. I’m done with three wheelers.

 

[RSchneider]

Apparently the real problem is the lack of market demand to justify mass production required to bring the price down. I’m done with three wheelers.

There’s a reason why companies like Vanderhall, charge what they do. They build their production around the demand. Not guess what the demand is and try to build production around that. Elio thought they could build a $6800 unit. They thought that funding a plant to build 250k would work. Demand was not there for that production.

Mark was to have a production of 50k by 2025. Never a word on selling 50k. If you can sell 5K per year, then invest that in your production line and up front deals with your suppliers. If the demand outstrips the production, then you can get the money to expand to meet it. Plus make sure you are making money on each product. That’s just basic business.

3 wheelers can succeed. Just build the business around it. Not a pie in the sky plan. Arcimoto could do well. They need to change their plan.

 

[Rickb]

OR maybe that haven’t halted production:

 

[Rickb]

There’s a reason why companies like Vanderhall, charge what they do. They build their production around the demand. Not guess what the demand is and try to build production around that. Elio thought they could build a $6800 unit. They thought that funding a plant to build 250k would work. Demand was not there for that production.

Mark was to have a production of 50k by 2025. Never a word on selling 50k. If you can sell 5K per year, then invest that in your production line and up front deals with your suppliers. If the demand outstrips the production, then you can get the money to expand to meet it. Plus make sure you are making money on each product. That’s just basic business.

3 wheelers can succeed. Just build the business around it. Not a pie in the sky plan. Arcimoto could do well. They need to change their plan.

Who better understands Arcimoto’s business plan than Arcimoto. It’s their mission statement and strategic planning to get there, not yours. They succeed or fail. Perhaps someone will buy them out and restructure the business model. At least they have a business to sell that includes a production vehicle.

Yes, 2 and three wheeler motorcycles are successful, but I‘m unaware of any successful fully enclosed three wheelers in the USA market. The average family market demographic, required for mass production and the affordable MSRP, apparently doesn’t want or need an open or enclosed three wheeler for their daily commutes…….single seat or 2 seater.

 

[RSchneider]

Here’s a link the KVAL report. So FUV is running normally as told by one employee. I can’t wait to see Mark confirm this. That way the stock price will shoot up and they can raise the money to keep making product.
https://kval.com/news/local/arcimoto-halts-production-may-seek-bankruptcy#

 

[3wheelin]

Apparently the real problem is the lack of market demand to justify mass production required to bring the price down. I’m done with three wheelers.

That's sad news for FUV and I won't be surprise of SOLO's fate be the same unless they come up with the TWIN (for twin seats). 3wheelers ain't safe enough, not big enough to use for business hence Pizza Hut opted for Chevy Bolt for their delivery service. It's a grown-up toy who fancy unique rides. For the rest of us who take 3wheelers seriously as a daily driver, the wait remains.