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Arcimoto

RSchneider

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A few things. Dealing with manufacturing for most of my life and everything from automotive to powersports (I consider the FUV on the same level as the powersports offerings). For these changes to the production, then one weekend is all they need. Since they are working 4 days per week, then they have three days to do so. If it's a complete model change (which they have not indicated), then it's a month. Plus, if they stopped production because of the 2023 model, they should have mentioned that in the SEC filing. Instead, they did not.

From reading their filings, at least $4M goes to paying off debt. Using that scenario, the $12M is actually $8M. This is like an Elio issue. When they printed $16M, most went to paying off debt and ongoing bills. Very little went to the E-Series.

I see Arcimoto being back in the same situation in 3 months. I hope I'm wrong but they need to start making money on each product.

As for used and new. Seems odd for a company that has huge demand. There should be nothing in inventory. Even with them selling in 13 states. Yet there they sit. As for the used, it has 80 miles on it. Not even one full charge yet considered used.
 

RSchneider

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The CEO of Xpotentialworks test drove the FUV……was impressed by the vehicle………contacted Frohnmayer about 3D printing parts to reduce weight of the vehicle. No cost to arcimoto that I’m aware of. Frankly, even with cost, a decision made to improved the production FUV, fewer parts, and money saved on manufacturing seems like a good CEO judgement call.
This is how it works in this industry. Xponentialworks sets up a booth at various conferences and trade shows. They also reach out to other companies for business. Xponentialworks is funded by private equity. So it's a group of rich people that are trying to invest in the next big thing. They dump a bunch of money in 3D printing and then the founder (who sold them on this) is under the gun to find customers. That's where Arcimoto comes in. In the end, there's at least 500 3D startups that I know of and they are all competing for paying customers.

Thus, they sell Arcimoto on this new tech. Mark takes the bait, writes them a check (again they need paying customers) and they go to work. All while demonstrating their new tech and engineering ability. Thus, a video was made. Last time I checked, when you have a startup that is funded by VC's and they are breathing down your neck, you need to produce good PR, you will not say, "I really don't like the FUV but I'm only doing this to save my keister and show the VC's that I'm doing my job."

Frankly, even with cost, a decision made to improved the production FUV, fewer parts, and money saved on manufacturing seems like a good CEO judgement call.
That's not a hard decision to make at all and did not require this engineering exercise. A supplier could have done this easily. For example, Roush did this for Elio as I mentioned earlier. Just so you know, making fewer parts is not always the answer.

you will have a smile on your face during the ride and possibly buy one providing sales and more importantly customer service expands to your State.
I still need to drive one and cannot. Plus, it's winter here and I am required to have full doors. Until that happens, another potential sale but with zero timeline on things like this, it makes it difficult for me to pull the trigger. Same for the Elio. Nobody here ever drove one and yet gave them money. Vanderhall offers free drives at their dealers. Thus why I took advantage of that. That's the way I roll. I need the personal experience.
 

Rickb

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A few things. Dealing with manufacturing for most of my life and everything from automotive to powersports (I consider the FUV on the same level as the powersports offerings). For these changes to the production, then one weekend is all they need. Since they are working 4 days per week, then they have three days to do so. If it's a complete model change (which they have not indicated), then it's a month. Plus, if they stopped production because of the 2023 model, they should have mentioned that in the SEC filing. Instead, they did not.

From reading their filings, at least $4M goes to paying off debt. Using that scenario, the $12M is actually $8M. This is like an Elio issue. When they printed $16M, most went to paying off debt and ongoing bills. Very little went to the E-Series.

I see Arcimoto being back in the same situation in 3 months. I hope I'm wrong but they need to start making money on each product.

As for used and new. Seems odd for a company that has huge demand. There should be nothing in inventory. Even with them selling in 13 states. Yet there they sit. As for the used, it has 80 miles on it. Not even one full charge yet considered used.
It seems that personal opinion, based on what we think we know know about Arcimoto’s mission statement, R&D, the production model FUV specs over the past 12+ years on the road to production, is the only reason for this Fun Utility Debate. Arcimoto will either make it or not Based on a variety of factors…….some within Arcimot’s direct control……some not. All I need is full enclosure and would like to see a production model option that includes the work of TMW‘‘s engineering skills. Happy Three Wheelin Trails.
 

RSchneider

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It seems that personal opinion, based on what we think we know know about Arcimoto’s mission statement, R&D, the production model FUV specs over the past 12+ years on the road to production, is the only reason for this Fun Utility Debate. Arcimoto will either make it or not Based on a variety of factors…….some within Arcimot’s direct control……some not. All I need is full enclosure and would like to see a production model option that includes the work of TMW‘‘s engineering skills. Happy Three Wheelin Trails.
One part of the mission statement that's missing. We need to make money at this. Unless they stop the bleeding, they will be out of money yet again. Volume is not the answer to all of the manufacturing problems. It's efficiency based on realistic projections. With them going to 50K in 2025, I do not believe they can sell that many. Same for Elio. Never believed they could sell 250K or even half of that.
 

Mark BEX

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the $12M is actually $8M.

With 6% interest, you may as well round it off at $7 million.

With them going to 50K in 2025,

Over quote to get the funds I guess.

Man, what I could put on the market for $12 million ... the $166 million that they have blown, doesn't even register in my brain.
 

RSchneider

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With 6% interest, you may as well round it off at $7 million.
Interest is nothing. Elio Motors defaulted on their first payment of $25M for the equipment in Shreveport and thus it defaulted to 18%. Take that and the other creative financing, is the reason why the company that does nothing except for paying Paul $250K per year, somehow creates $18M in debt over the last year. Can't imagine why he couldn't raise enough to get to production.

So, here we go again, another company that is dealing with the devil of financing. Increased interest rates that slowly drowns the business in debt. Easy money comes at a cost. They printed $12M and now will have to deal with that when it comes (which will be soon).
Over quote to get the funds I guess.
The quote is based around production volume, not sales. So, throttling up to 50K/year is a waste of money when you have around 5K in reservations (which many you cannot fulfill), then you have an inventory (shows you cannot clean out the lot, so floor-planning those items costs money). If the demand is there, then ship to all 50 states. Top it off, they need to look at the cost to sell each one. What i see is it costs them $40K to sell a unit. Increasing production is not going to help the current overhead unless they really had some really bad people negotiating salaries and supplier costs. If that's the case, fire them and get new ones in. The cost per product is not going to go away in the near future. Actually, not making product reduces the bleeding.
 

RSchneider

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Some more good information:
- 89 units sold for Q4 2022 (a new record)
- 228 units sold for all of 2022 (sold 190 in 2021, thus 2022 is a new record)
- More than 500 FUV's on the road today
- Over 5000 "butts in seats" with the rental program
 
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