Arcimoto

[RSchneider]

Arcimoto, Inc. Announces Closing of $12 Million Public Offering

EUGENE, Ore., Jan. 20, 2023 (GLOBE NEWSWIRE) -- Arcimoto, Inc.® (NASDAQ: FUV), makers of rightsized, outrageously fun, ultra-efficient electric vehicles,...

www.globenewswire.com

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Remember, this is a loan that will need to be paid off in 12 months. So, the $6M uses the properties of Arcimoto as collateral. Then there is a $600K fee (up front) for this loan which is at 20%. Looking at the official Arcimoto docs, that means This $6M loan will have $1.3M in interest if paid off in 6 months. Then the same exact line for this loan was the same for the stock split, "A portion of the net proceeds from the offering were used to repay the convertible note with 3i. The remaining funding will be used for working capital and general corporate purposes." If Arcimoto pays it off early, then they still owe $600K in interest.

From the link I provided earlier:

Hilco Global is also considered one of the largest distressed investment and advisory companies in the world

n 2001, the division became known as one of the top five liquidation firms in the United States, having been involved in the $1.8 billion liquidation of Montgomery Ward following that company's bankruptcy.[5] Some of its most notable disposition and liquidation deals included work for Sears, Sears Canada, CompUSA, Sportmart, PharMor Rx, Coldwater Creek, Charming Charlie, and Target Canada.

Hilco Real Estate was responsible for numerous large transactions in real estate including 1,200 leases for MCI Worldcom that the company either sold or renegotiated.[17] It also closed hundreds of Blockbuster stores following the company's 2010 bankruptcy as well as approximately 200 Borders Book Stores following that company's 2011 bankruptcy.[18] Hilco Real Estate was also involved with the selling of over 165 unused properties owned by Hostess after that company filed for bankruptcy in 2013.

There you go. We'll see but Arcimoto is now down to taking loans with a company that deals with distressed companies. Fome looking at their previous deals, it doesn't look good. On the other hand, maybe they will come in and cut the cost of making a FUV to $9K and start selling that $11,900 version. The way I see it, they have not crossed the finishline. Just passed more milestones than some other startup three wheelers have.

 

[3wheelin]

I would hold my breath if I was you!

Don't know 'bout you but I believe it'll happen....

 

[Rickb]

My opinion is they crossed the production finish line. They may or may not stay in business. As it is, I won’t buy one because it doesn’t meet my needs unless fully enclosed and there would have to be easy access reliable service available if/when fully enclosed. I’ll be surprised if there is much market demand for the 2023 model based on the negative funding and service issues as the 2019 model FUVs are close to the end of warranty. Personally it doesn’t matter because I have little hope of owning the vehicle. However, I continue to hope they are successful for the sake of the current owners and small time investors. I had the same hope for EM, Elio Maketing.

 

[3wheelin]

My opinion is they crossed the production finish line. They may or may not stay in business. As it is, I won’t buy one because it doesn’t meet my needs unless fully enclosed and there would have to be easy access reliable service available if/when fully enclosed. I’ll be surprised if there is much market demand for the 2023 model based on the negative funding and service issues as the 2019 model FUVs are close to the end of warranty. Personally it doesn’t matter because I have little hope of owning the vehicle. However, I continue to hope they are successful for the sake of the current owners and small time investors. I had the same hope for EM, Elio Maketing.

Right now Electra Meccanica's SOLO is the only one (at this price) that offers a fully enclosed cabin, A/C, heat, steering wheel, a liquid cooled battery and capable of highway/freeway driving for $15,500.. Nothing else comes close. maybe, just maybe if they offer a longer range battery, I'll overlook the one seat and buy it!

 

[3wheelin]

The one thing Team ElectraMeccanica had going for them was their backgrounds and connections to the automotive industry, unlike Elio or Arcimoto. The had good concepts and marketing, but not a clue about what it takes to get a concept ready for scaled production. After the Solo’s market demand is proven the Twinn will follow

I like the sound and how it's spelled, very catching. I hope they're reading these posts Rickb.

 

[Mark BEX]

Then there is a $600K fee (up front) for this loan which is at 20%

Smells of early 2000 loans, leading up to 2008 ...

Also smells of desperation.

 

[RSchneider]

Smells of early 2000 loans, leading up to 2008 ...

Also smells of desperation.

I agree. If a company has the demand for a product and they can make it for a profit, then there is no need for loans like this. If you look at the early days of Elio, they made horrible financial decisions in the early days, which is what really killed the company. When you lease a plant, then take out a $26M loan to buy the equipment, default on the first payment for both and for that $26M loan, it defaulted to a 18% interest rate. For the lease, it just added up in late penalties, you knew they started off in 2013 on the wrong foot. Plus when the 1500 employees fine thing they agreed to, just literally made a $7.5M fine. Funny thing is, if Elio never went public, we would have never known this. It took 3.5 years to see these deals on the initial SEC filings. Up to that point, nobody knew. This is why you see the company rack up $17M of debt per year by doing nothing.

Bad business decisions in the early days and in the late days can kill a company. Elio just did it right off the bat, thus why the cold never hit a few milestones. Arcimoto is doing this out of desperation without hitting the finish line (I hate when people say finish line as it's milestones). They need to start making money on each unit out the door as opposed to losing $40K on each unit. When you sell a $20K unit and it costs you $60K to build it, there's a big problem that needs to be fixed. With sales as dismal as they are (likes and refundable reservations don't equate into sales), something has to change. This company is at risk of losing their property if they can't pay the bills. Then it can be like the other companies they worked with in the past. I see a major restructuring down the road.

Good thing is the numbers will look much better for Q4 2022 as they got rid of about 1/3 of the workforce. Then Q1 2023 will look better as they shut down production for about a month. So, those workers in production were probably put on furlough as it makes no sense to have them show up and do nothing. I do not believe the excuse of retooling for the 2023 model. As we see they already made the mod to the steering and the rest were already options.

 

[RSchneider]

Right now Electra Meccanica's SOLO is the only one (at this price) that offers a fully enclosed cabin, A/C, heat, steering wheel, a liquid cooled battery and capable for highway/freeway driving for $15,500.. Nothing else comes close. maybe, just maybe if they offer a longer range battery, I'll overlook the one seat and buy it!
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I look at SOLO to be the benchmark for the three wheeler market. With what it has, it checks the boxes for most three wheeler owners. There will never be a three wheeler that will check all f the boxes but at least SOLO tried to check most of them. I see the three wheeler crowd are very specific and finicky when it comes to what they want. Thus why three wheeler sales are so low and finding investment becomes very hard for these companies. SOLo would be the best last mile delivery vehicle in my opinion right now when it comes to the three wheeler market.

Plus, SOLO used modern software and people in the automotive industry to make their product. You can see it in the details with the advanced surfacing. Arcimoto fell short in that department. I makes no sense to me as if SOLO could do it, why couldn't Arcimoto? Both have certified production vehicles.

 

[3wheelin]

I look at SOLO to be the benchmark for the three wheeler market. With what it has, it checks the boxes for most three wheeler owners. There will never be a three wheeler that will check all f the boxes but at least SOLO tried to check most of them. I see the three wheeler crowd are very specific and finicky when it comes to what they want. Thus why three wheeler sales are so low and finding investment becomes very hard for these companies. SOLo would be the best last mile delivery vehicle in my opinion right now when it comes to the three wheeler market.

Plus, SOLO used modern software and people in the automotive industry to make their product. You can see it in the details with the advanced surfacing. Arcimoto fell short in that department. I makes no sense to me as if SOLO could do it, why couldn't Arcimoto? Both have certified production vehicles.

Well, Electra Meccanica's Chinese manufacturer of SOLO doesn't mess around and built it with real car looks inside and out. If the BEX's inside looked like this when it's done, it'll be my first choice because it's ICE which I prefer.

 

[Rickb]

Well, Electra Meccanica's Chinese manufacturer of SOLO doesn't mess around and built it with real car looks inside and out. If the BEX's inside looked like this when it's done, it'll be my first choice because it's ICE which I prefer.

Curious if you have had personal experience driving an EV? Driving an EV since 2020 changed my opinion. I was surprised, maybe ‘shocked’.
I like the Solo’s finish level look in the photos.

Also, like the Nimbus. My first impression was that it appeared to be a cross between the Solo, FUV, and Toyota i-Road.