Arcimoto Inc (FUV)·Q2 2022 Earnings Summary

Executive Summary

• Q2 2022 showed record vehicle output (102 produced) and triple-digit revenue growth, but losses widened and management withdrew full-year production guidance amid supply-chain constraints .
• Revenue rose 109% year over year to $1.499M; net loss increased to $17.4M (−$0.44/sh) vs. −$8.2M (−$0.23/sh) a year ago; deliveries were 41 with finished goods inventory rising to 55 units .
• Management reached ~6 vehicles/day production and targets 12/day by year end to drive scale benefits; however, prior full-year production guidance was withdrawn, and no new outlook was provided .
• Liquidity actions included $21.1M raised (ATM equity and a $4.5M convertible note) and a new consumer financing partnership (FreedomRoad) to support demand conversion .

What Went Well and What Went Wrong

• What Went Well

  • Record production: “Produced 102 new customer vehicles, the highest vehicle production quarter in Arcimoto’s history.”
  • Demand funnel and rentals scaling: Rental revenue up 224% YoY; rentals +209% YoY and +94% QoQ; “conversion average is 12% (rentals) … 8% (demo drives)” in earlier periods; expanding rental locations .
  • Operational progress and leadership additions: Reached ~6 vehicles/day run-rate; targeting 12/day by year-end; added C-suite leaders in product, experience, business support, supply chain to support scale-up .

• What Went Wrong

  • Profitability pressure: Continued negative gross profit; net loss widened to −$17.4M in Q2 2022 vs. −$8.2M in Q2 2021; operating loss −$15.2M vs. −$9.4M .
  • Guidance withdrawn: “We will not meet our prior full year production guidance. We are not providing further guidance at this time,” citing chip shortages and supply-chain headwinds .
  • Working-capital build: Delivered 41 vehicles vs. 102 produced; finished goods inventory increased from 18 to 55; inventory valuation includes NRV adjustments; labor/overhead expensed as period costs while selling below unit cost .

Financial Results

Segment revenue mix (Three months ended June 30)

Select KPIs

Balance sheet and liquidity (quarter-end)

Notes:

• Additional financing: Raised $21.1M in Q2 (ATM equity $16.4M; $4.5M convertible note on Apr 25; balance equipment/options) .
• Convertible note terms: 10% interest; multiple conversion mechanics with $7.00 base conversion price and floor mechanics; fair-value accounting with $2.146M unrealized loss recognized in Q2 .
• Consumer financing partnership: FreedomRoad Financial to enable retail vehicle loans .

Guidance Changes

Management context: “We recently achieved a production rate of six vehicles per day… plan to reach 12 vehicles a day by the end of the year,” but “due to… micro chip shortages… we will not meet our prior full year production guidance.”

Earnings Call Themes & Trends

Note: The company hosted a stakeholder update webinar with Q&A; third-party sites host the transcript, but our document reader could not retrieve the full text. Public links indicate Aug 15, 2022 5:00 p.m. ET call time .

Management Commentary

• “Our team recently achieved a production rate of six vehicles per day… Though we achieved our highest production quarter to date, we continue to generate negative gross profit… We expect gross profit to improve as we continue to scale… and implement key cost-down initiatives.” — Jesse Fittipaldi, Interim CEO .
• “Due to [supply chain headwinds], we will not meet our prior full year production guidance. We are not providing further guidance at this time.” .
• “More important than the aggregate number of vehicles produced while we remain at a gross margin deficit, is that we plan to reach the production rate of 12 vehicles a day by the end of the year.” .

Q&A Highlights

We were unable to retrieve the full Q2 2022 earnings transcript via our document tools. Public sources confirm the call occurred on Aug 15, 2022 at 5:00 p.m. ET, but without access to the verbatim Q&A, we cannot cite specific exchanges or clarifications .

Estimates Context

• Wall Street consensus (S&P Global) for Q2 2022 EPS and revenue was unavailable due to missing SPGI mapping for FUV in our system. As a result, we cannot present a verified consensus comparison for this quarter. We attempted to retrieve “Primary EPS Consensus Mean” and “Revenue Consensus Mean” but received a mapping error (no CIQ company ID).
• Implication: Focus on reported results and trajectory; monitor future estimate formation as production scales and guidance resumes.

Key Takeaways for Investors

• Execution vs. scale targets is the critical driver: record output, 6/day run-rate achieved, and a 12/day target by year-end—watch monthly production/ deliveries for confirmation .
• Profit path requires volume and cost-downs: management acknowledges negative gross profit; reaching scale plus component cost reductions are essential—track gross loss trajectory and inventory turnover .
• Guidance withdrawal introduces uncertainty: supply-chain/ chip risks remain a headwind; lack of FY guidance may weigh on sentiment until operational milestones de-risk the ramp .
• Demand funnel building, aided by rentals and financing: rentals and drive programs are expanding “butts in seats,” and new retail financing could support order conversion as supply normalizes .
• Liquidity actions extend runway but raise dilution/complexity: ATM equity raises and the convertible note bolster cash but add dilution and fair-value P&L volatility; monitor additional capital needs versus ramp progress .
• Near-term trading setup: headline risk around execution/parts availability vs. upside catalysts from production scaling and rental expansion; event-driven volatility likely until guidance reinstated .

Citations

• Q2 2022 8-K press release and commentary:
• Q2 2022 10-Q financial statements and MD&A (P&L, balance sheet, segments, KPIs, inventory accounting, convertible note, litigation):
• Slides/other press releases: rentals/drive funnel and revenue charts ; leadership additions ; consumer financing partnership
• Q1 2022 8-K press release (for prior-quarter comps and context):
• Earnings call transcript links (public):