While Arcimoto’s financial situation looked dim in today’s earnings report, Mark Frohnmayer, Arcimoto’s president and founder told investors he plans on increasing the company’s production.
According to the Q2 earnings report released Wednesday, Aug. 14, the company reported a loss in earnings per share (EPS) of $0.23, the equivalent of a net loss of $3.9 million. The expectations for Arcimoto’s performance, according to Zacks Investment Research, were EPS $-0.17, with a net loss of $2.9 million.
The net loss for this quarter compared to last year was also more dramatic with $-0.14 in EPS in 2018, and now with $-0.23. This means that the difference in net loss for this quarter compared to last year is approximately $1.75 million.
Still, Arcimoto’s founder and president Mark Frohnmayer was optimistic. During an investor webcast, Frohnmayer said the Evergreen fleet will be delivered by next month. The initial delivery date was mid-July.
The company is waiting on final tests on its vehicles in order to deliver.
The last steps for Arcimoto to complete all the necessary safety tests include lighting compliance, which Frohnmayer says is 70 percent complete, and seatbelts compliance, which will go through final testing Aug. 26.
Also according to the report, revenue reported of $8,514 was significantly less compared to the same second quarter last year, of $85,000. The revenue for this quarter comes from “merchandise, and outside metal fabrication,” whereas last year, most of the revenue came from vehicle sales.
Arcimoto has had to delay the delivery of its first vehicle fleet, the Evergreen Edition FUV (Fun Utility Vehicle). The Evergreen is Arcimoto’s flagship and is meant for everyday city driving with a range of 100 miles per charge.
Frohnmayer also said that Arcimoto will start producing and delivering on low volumes until there is enough cash to reduce costs and increase production. The scaling will be initially 100 vehicles per week and expand to the goal of 200 vehicles per week.
But Frohnmayer wants to go beyond the Evergreen. He told investors about the new fleet of vehicles: the Rapid Responder and the Deliverator, both meant for companies use rather than customers. The Rapid Responder was created for law enforcement and emergency response, while the Deliverator was created for delivery services.
With the Evergreen and the new vehicle fleets, Frohnmayer said Arcimoto is building inventory. According to the report, Arcimoto currently has $3.6 million in inventory compared to last year, when it had $1.7 million.
Arcimoto has 3,217 pre-orders for the Evergreen as of the end of 2018. Currently, according to the report, it has 4,128 pre-orders, an increase of approximately 28 percent, showing there is demand.
Despite the delays, Frohnmayer said the company is “working at full steam to get vehicles out to customers,” and that once the vehicles are ready to be delivered, “you will know the moment that happens.”