3-Wheel EV Maker Arcimoto Files For IPO

JUN 27 2017 BY MARK KANE 34

Arcimoto announced an IPO filing under SEC Regulation A, with a goal to secure up to $9.3 million and fuel final development and production of its SRK electric three-wheeler.

Arcimoto Files for IPO Under Reg A, with new capital to fuel final stages of breakthrough three-wheeled SRK everyday electric vehicle starting at $11,900

The SRK is to be available in two versions, good for either 70 or 130 miles range, with a top speed of 80 mph and a acceleration time to 60 mph in just 7.5 seconds.

The previous date for a 50-unit pilot and market launch was late 2016 – which obviously didn’t happen.

The base price of the SRK stands at $11,900, but according to IPO details, the average price will be more like $15,000, while the cost should be at around $10,500.

Key uses of proceeds to be:

  • Complete design and testing of the SRK.
  • Build in the Phase 1 assembly facility and start production.
  • Prepare for scale manufacture.

Here are details of the announcement and pdf.

“Arcimoto®, makers of the world’s first Fun Utility Vehicle™ — an affordable and practical pure electric vehicle for everyday commuters and fleets, has filed its Form 1-A Offering Circular for the offering of common stock under SEC Regulation A, setting the stage for a potential future listing on the NASDAQ Capital Market. The relatively new changes to Regulation A provide a more capital-efficient pathway for market-entry technology companies, like Arcimoto, to offer equity to the general public. WR Hambrecht + Co is acting as the sole and exclusive underwriter for the Reg A+ IPO for Arcimoto.”

“Arcimoto was founded in 2007 to catalyze the shift to a sustainable transportation system. The name Arcimoto means “Future I Drive,” and it is the company’s aspiration to devise new technologies and patterns of mobility that raise the bar for environmental efficiency, footprint and affordability. Arcimoto plans to achieve its mission by replacing the global urban and suburban use of 4,000 lb. internal combustion engine vehicles for regular daily trips with the Arcimoto SRK®, a pure electric solution that is a quarter of the weight, a third the purchase cost, and ten times as efficient as the U.S. average passenger car.

The Arcimoto SRK defines the Fun Utility Vehicle category. The SRK delivers a thrilling ride experience, exceptional maneuverability, full comfort for two passengers with gear, optimal urban parking flexibility, and estimated 230 MPGe ultra-efficient operation — all at an affordable target base model price of $11,900. Arcimoto has taken the SRK from a napkin sketch, through eight generations of product development, to a refined design on the cusp of series production and market availability. As we shift to a self-driving future, the Arcimoto SRK platform will provide the low cost, ultra-efficient foundation for urban fleet autonomy as well.”

Arcimoto SRK

John Hullar, Managing Partner, WR Hambrecht + Co. said:

“Our team is excited and honored to support this offering from Arcimoto, because their vehicles hold the potential to create a significant paradigm shift in how we all think about mobility. This could represent a tremendous opportunity for all classes of investors. We are pleased to represent the Arcimoto Reg A+ IPO and we look forward to bringing this offering to the market.”

Mark Frohnmayer, CEO and founder of Arcimoto said:

“We inherently recognize that it is no longer sustainable for our wallets, our communities or our environment to commute five miles to work alone or drive to the store to pick up a gallon of milk in a three ton, $50,000 SUV. At Arcimoto, we’re out to rightsize transportation. The SRK platform is exhilarating to drive, affordable for virtually everyone, hyper-efficient, and eco-friendly for our communities and our planet. We are delighted to bring this opportunity to everyday investors around the world via today’s filing.”

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34 Comments on "3-Wheel EV Maker Arcimoto Files For IPO"

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“with a goal to secure up to $9.3 million” #fail. I’ve seen so many of these wannabes disappear into obscurity that I can predict exactly how this is going to go down before it even starts. In about 18 months, disillusioned (and let’s be honest, not particularly smart) investors will be throwing proverbial rocks at them, demanding their money back. Except that’s not how this works, and they’re all screwed. I don’t know whether the top “execs” at Arcimoto are intentionally trying to dupe investors, or if they’re true believers in this banal nonsense and they think they’ll succeed where Miles Electric (who?) and Zap have failed. Go big or go home, Arcimoto. Build a real car and raise the real funds to make it happen, or go away. Polaris is already making real electric ATVs, and a half dozen automakers are already making real electric cars. There is no “in between”. You aren’t the leaders of the revolution. You’re not even hangers-on. You’re just a blight on the landscape, pretending that you matter. As for you InsideEVs, stop posting these dumb press releases. These companies have nothing, will be nothing, and are, at best, trying to scam people. At… Read more »

Brave Lil’ Toaster,
Chill a bit 🙂

I’ve witnessed your written sentiment first hand in 2009 when I was a field trial driver in the BMW MINI-E program, It was actually worse back then as there were no modern EV’s on the road. Five years later in 2014, the BMWi program was launched to the public.

I’ve driven the Arcimoto (can you say that about the Elio, Aptera, and others?) and the positioning of the vehicle is superb as relates to many sectors of transportation and mass transportation. It’s a really good and fun open air electric vehicle.

At a weight of ~1000 lbs, it spans the gap from a 300 lbs motorcycle and a 3000 lbs car and if you can imagine a world where the driver begins to exit the vehicle, it starts making incredible sense.

Bless the entrepreneur and team that hears no a million times but marches forward. The inertia of the status quo is strong, no matter how broken the staus quo is.

Great job Inside EV for covering this and watch this space 🙂

Peder Norby
Planning Commissioner for the County of San Diego for eight years.

” if you can imagine a world where the driver begins to exit the vehicle”

Yes, can imagine this in multiple scenarios.

As a fellow San Diegan, I’m as excited as you about the Arcimoto. I’ve got my deposit in and am about #700 in the queue. Can’t wait for them to hit the road! Now all we need are some serious traffic calming measures for our surface streets.

Very well said.

The chances of 3-wheelers, electric or otherwise, in the North American market aside, it’s really, really strange to raise the $9M via an IPO.
That’s a really small amount, given the extra overhead for a public vs. non-public company to comply with SEC reporting is ~$1.5M-$2M per year… And the requirement for public quarterly & yearly reporting means you can’t hide any strategic info from competitors.
$9M is the amount of money one raises from VCs, or a combo of VCs and large companies already in the field (it’s almost angel territory). If they couldn’t find an angel group or VC to invest that, they’re pretty much bound to fail.

The time for an IPO is after you already have decent sales, and need lots of cash for serious mass production and marketing.

While I completely agree with you, I think they are trying to do an IPO to get more money from hopeful buyers. The pitch? Invest in this awesome toy/dream/etc and we’ll get you yours sooner.

That’s completely ass-backwards. The major investors in IPOs are institutional investors, and if you can’t get smaller investors to contribute a few millions, you certainly aren’t going to get the big guys.
An IPO isn’t a crowdfunding gig, with completely ignorant “supporters”.

Even if there are now cheaper IPO tracks as Mark Frohnmayer writes below, the major problem still stands. Once a company’s public, its execs have to spend a lot of management attention on their stock price instead on designing, producing, marketing and selling product.

I’ve been in startups both pre- and post-IPO, and this was glaringly obvious.

This also affects all other employees with stock or stock options. Major announcements have to be timed to conform to SEC quiet periods instead of to what’s best for the product, and the entire business plan schedule has to conform to financial SEC quarterly schedules instead of what’s optimal for the company & product themselves.

Now, if a company like Intel is doing this to fund a $1B fab, or Tesla to fund serious mass production ramp-up, it’s one thing, and the tradeoff may well be worth it. But $10M for a startup? No Way.

Regulation A provides both a much more efficient pathway for the initial offering and for subsequent reporting versus a traditional S-1, thus making public offerings a viable fund raising tool for market entry companies.

Yes wavelet is way off base on costs here. The whole point of the SEC legislation was to reduce the cost structure of an IPO as well as the regulatory filing burdens/costs. Their strategy makes sense to me.

As I understand it, they have done a lot of design development, on the vehicle itself. A feature that I like is torque vectoring with the dual motors – this should help the stability, and improve handling.

They may have work to do on the optional “hard” body panels, and things like the door hinges.

Ridiculous. Why would anyone pay $12,000-15,000 for an open-air, 3-wheel electric scooter, when he could buy a 4-wheel, all-weather, used Leaf with enclosed cabin, heater and air conditioner, etc. etc., for that price or even less?


… said nobody who’s actually tried the SRK.

The ride experience of the Arcimoto blows away that of entry-level electric cars. Plus if you’ve ever had to hunt for parking or maneuver in traffic, the benefits of the Arcimoto’s form become quite clear.

I’m guessing you live in southern California?

Very few people living living outside a balmy “Mediterranean” climate would spend that kind of money on a vehicle (it’s not a “car”) which can only be comfortably ridden in fair weather.

There is a reason most cars have enclosed, waterproof cabins, and windshield wipers, and heaters, and even air conditioners.

It’s also rather dishonest to complain about people who “drive to the store to pick up a gallon of milk in a three ton, $50,000 SUV” while promoting a vehicle that has absolutely no trunk, and isn’t at all set up to carry a bag of groceries.

I guess you could bungee-cord that gallon of milk into the back seat, but there certainly isn’t any cargo space built into this 3-wheeled scooter!

Well I for one believe that there is a market for such a vehicle. I am a motorcyclist and there are quite a few motorcycles in the same price range as the SRK. It’s not a direct apple to apple comparison to a used EV (car) or even a motorcycle for that matter. Here is my thought: I vote with my dollar. Who should get my money Chevy? Fiat? Ford? All were trying to get emission targets moved back or repealed. I can’t get over the negativity. Here is an American company creating American jobs, building a product that will help people who either can’t afford or don’t want to use a car as their only transportation thereby reducing traffic and help with over crowded parking and helps reduce climate change. I fail to see a down side. I hope that you do well with the IPO. I talk up your company like crazy to anyone who will listen. Keep up the good work your are doing.

Five stars motorman!
PP, you’ve never seen people driving open Jeeps? Enjoy your boring Leaf.

another point of view, why would someone pay 25k for a Polaris Slingshot or a Can Am Spyder and then still have to buy gas?

Different markets.

The difference being that there is sufficient market for high-end sports cars to support multiple auto makers specializing in only those cars, but there is very nearly no market at all in the U.S. for 3-wheeled microcars, and even less for 3-wheeled motorcycles that cost such an outrageous price.

Even the Twizy, which sells fairly well in the European market, where microcars do better, has four wheels, altho at a price of about $9700, it’s not much cheaper than this 3-wheeler.

Peder Norby said:

“…a Polaris Slingshot or a Can Am Spyder…”

Oops, I jumped to a conclusion there about vehicles I had never heard of, and wrongly assumed you were talking about something like the Porsche Spyder sports car.

Mea culpa.

And yet people buy Harley Davidson motorcycles every day even though I think it isn’t a practical decision at all. These things are priced toward the motorcycle crowd which they technically are.

Excuse me, I get 50mpg on my Harley Davidson.
Quite a bit better than my car.
Sure, I’d rather ride an electric bike, and I will, eventually.

Steven, You are one distracted driver (texting, streaming) away from traumatic brain injury or death when driving your 50 mpg bike.

“And yet people buy Harley Davidson motorcycles every day even though I think it isn’t a practical decision at all.”

Harley Davidson makes serious road machines, which are driven on long cross-country trips all the time. They often have storage space on the ‘bike and some even pull trailers.

Sure, riding a motorcycle, even a Harley, is much more dangerous than riding in a car, and a Harley puts you out in the wind and rain just like any other motorcycle. But I don’t think this SRK 3-wheeler is at all aimed at the same market as Harley Davidson’s machines.

I used to hope that the Aptera 2e would fail for the simple reason that I was concerned policy makers (government) would look at it and get the wrong impression about EVs. The Aptera 2e looked like a “weird mobile” or “science experiment.

Tesla really got it right about making electric cars ‘compelling’.

I can’t get excited about this vehicle. It doesn’t solve any of my transportation problems here in the PNW. I can’t believe they’ll sell enough of these for their shareholders to get a return on their invrstment.

>in the PNW

The video says they’ll offer optional doors

The Twizy offers optional doors, but not a watertight cabin. Those driving one in the rain are advised to wear a swimsuit.

Will the Arcimoto SRK be any better?

Battery pack info?

12 kWh or 20 kWh

I’ve followed Arcimoto for six or seven years. They started with a couple million seed money from the founder. I was hoping they could beat Nissan out of the gate. Instead, they have gone through seven or eight prototypes. Their website has not been updated regularly, so I thought they were dead.

They are trying to fill a niche that I’m not sure exists. If they have a business plan that shows profit with sales in the hundreds per year rather than tens of thousands, they may be successful. I wish them the best.

It would appear they are going to be hand assembling them for awhile so capital inputs probably more on the order of custom bike shop.

Yes, it has a niche. I have middle-aged coworkers who can’t quite balance a Gold Wing anymore and are now riding Can-Am Spyders. Something like the Arcimoto would be a good transition for baby boomer fair weather commutes and weekend joyriding. God knows that boomers are culling the herd by riding Harleys long beyond their abilities…

Has anybody ever really ever thought about these death-trap vehicles that the govt. gives a free pass with safety? All cars have to pass safety standards mandated by law but motorcycles are exempt from crash tests for obvious reasons…they can’t pass any tests!! Don’t buy these if you don’t wanna die!!


Think of it as a very safe motorcycle 🙂
The SRK is not trying to be a car unlike the Elio or Aptera.

In my view, many folks including me will not drive a motorcycle due to safty but will drive an SRK.

Opinions vary of course and I probably will not be driving the SRK 50-70 miles on the freeway but others who are comfortable with motorcycles will.

In our urban area of Carlsbad along the Pacific Ocean, the SRK will be awesome 🙂

“Think of it as a very safe motorcycle ? ”

“Very safe”? I’d say only marginally safer. You’re still going to lose, badly and quite possibly fatally, in an argument with any car, truck, tree, telephone pole, street light, or other solid obstacle.