If You Don’t Watch This Arcimoto Q2 Video, You’ll Regret It

AUG 20 2018 BY DOMENICK YONEY 17

Talks up pivot to destination rental strategy

Arcimoto — maker of the three-wheeled, all-electric fun utility vehicle (FUV) — published its 2018 Q2 financial report last week, and it is awesome. Not because of any standout accomplishment, though it’s fair to say the company appears to be making good progress. No, it’s awesome because, instead of handing us a boring document with the necessary financial information dressed up with a couple photos and graphs, they’ve created a sweet four-minute video (above) that walks us through its achievements and tells us what we can look forward to.

There are a couple big takeaways from the latest update. The biggest is the clear enunciation of its marketing plan going forward. Instead of buying up billboards or opening retail stores, it’s going to focus on destination rentals. That is, it will rent out its FUV at “rental experience centers” located in popular vacation destinations. This allows it to immediately see a revenue stream while also introducing the joys of open-sided electric three-wheeling to potential customers without a ham-handed sales pitch. The first two locations will be in its hometown of Eugen, Oregon and the Encinitas/Carlsbad area of southern California.

If you listen to the Q2 Earnings Webcast (it features the video above followed by a little more detailed company information, along with a question and answer session full of additional information, and is embedded below), you’ll learn that they intend to franchise these rental experience centers to further drive growth and revenue. Sales won’t happen at these stores. At least, for now, that isn’t the plan. Instead, sales will be conducted online only with service being handled by independent outfits. As the professional analysts might say, it strikes us as a pretty capital efficient way to expand the company.

The other main point the video makes is that everything is on schedule. The end-of-year target for beginning retail production seems achievable. That’s good because the pre-order list has grown to 2,800 units despite a lack of marketing effort. As manufacturing ramps up, they expect to be able to fill those orders next year. In fact, by the end of the year, with just a single shift, they believe they could be churning out as many as 200 a week. That translates into 10,000 a year, and they feel they could more than double that figure with another shift.

In case they need even more capacity —  and with an eye on the international market, that’s not outside the realm of possibility — the company is hoping to open another manufacturing facility on the east coast of the United States and has applied for a $100 million loan under the government ATVM program to help make that happen. We hope they aren’t holding their breath waiting for a positive response and have a Plan B for funding this, in light of the fact that the government program, although still flush with billions of dollars, hasn’t loaned out money in a number of years.

If you enjoyed the above presentation, you may find the full webcast below pretty interesting as well. Lots of questions get answered and the plan clarified. Enjoy!

Source: YouTube

Categories: General, Videos

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17 Comments on "If You Don’t Watch This Arcimoto Q2 Video, You’ll Regret It"

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F150 Brian

Super cool!
I hope they have plans for an all weather variant. Might just need a shell.

BoltUp

Those seatbelts.

Bernhard

Upper fixing point is too low. Steel tubes need padding or the passenger should wear a helmet.

Chris5168

Too low and too wide, they can’t be both. Overall impressive. Wonder how well a solar roof would be for those short commuters that wouldn’t drive far but park for significant time too

Nix

Technically seatbelts aren’t required for this vehicle, based on it being classified the same as a 3-wheeled motorcycle. They could legally build it with nothing to hold people in at all.

But yea, not exactly the best design.

I don’t really get these moped substitutes, who would buy one?

I’d understand having them on a vacation island where there is no other traffic, if they are priced comparable to a moped, but otherwise no.

Pushmi-Pullyu

I don’t get it, either. I can’t figure out who this would appeal to. But they claim to have gotten a lot of reservations, so I guess there is an appeal there which I’m missing.

BTW — I didn’t watch the video, and so far I’m not regretting that at all. 😉

Robert Weekley

At least, Watch the top one, it won’t hurt, and you will learn a lot in 4 minutes!

DL

If people think those electric rental scooters are littering the streets of their city, wait till these stupid things start showing up everywhere (let’s hope not).

Paul Smith

Lousy title. If I don’t watch the video, how can I regret it? I won’t know what there is to regret.

philip monkiewicz

east coast when ??
boston

can you drive in rain and snow ??

what the weight limit ??

Russell Bowman

Hmm, I could see some well off people towing one of these behind their class A motor home, and wonder it there is a way to tow it and charge it at the same time.