By M. Marin
READ THE FULL FUV RESEARCH REPORT
Arcimoto (FUV) is preparing for the commercial launch of its efficient and economical electric vehicle (EV), the FUV. The company is ramping up its production and distribution capabilities and expects to deliver the FUV for commercial shipment in the near future. The company strives to reduce construction time and increase production efficiency as it moves towards mass scale production. Management hopes to begin small scale retail series production by the end of 2018.
Earlier this week, the company reported results for the second quarter ended June 30, 2018. In the first half of 2018, Arcimoto finalized the manufacture of 10 of its limited production premium Signature Series FUVs, with several earmarked for sale to third parties. The company also commenced the production of 15 beta series vehicles. Two beta units were completed in the first half of 2018 and the company believes that it has improved the production process as it moves up its production learning curve and also continues to integrate automation. Arcimoto delivered two FUVs to customers in June 2018 and subsequently delivered another two vehicles after the second quarter closed.
To drive cash flow, brand awareness and sales, Arcimoto intends to expand a new rental model to enable customers to experience and rent the FUV, while simultaneously driving corporate cash flow. The company intends to open in-market experience centers in certain markets that are expected to facilitate the rental model.
Arcimoto expects to allow customers in certain markets to rent the FUV on an hourly, daily or weekly basis from the in-market experience centers. This model is expected to be cash flow positive. Arcimoto anticipates forging partnerships and franchises to facilitate rentals and participate in the rental revenues on a revenue-share basis. Management believes this channel could prove to be both an attractive source of cash flow and help drive sales.
Expanding its rental footprint through franchises and with partners will enable Arcimoto to minimize its own capital expenditures while broadening its network. The first rental location is planned in Eugene, Oregon. The company intends to open another site in Encinitas, California. Over time, the company believes that vacation markets such as the Hamptons in New York and many Florida, Hawaii and California cities, among other places, would be good places for an in-market experience and rental center. The rental concept has proven successful with other three-wheeled mini-vehicles.
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By M. Marin