Arcimoto halts production due to finance issues
US company Arcimoto says it has stopped production of its electric three-wheeled vehicles and may have to seek bankruptcy protection from creditors if it can’t raise more money to fund operations.
Arcimoto disclosed the news in a filing with the Securities and Exchange Commission on the 17th of January. In the filing, Arcimoto explains the tentative steps towards seeking bankruptcy protections, but the company has also not given up and is seeking to sell new shares and warrants to fun operations. New shares might not be enough, however, as the price fell 60% to $2.52 a share today. This means the company has lost almost all of its value since peaking at $600 (adjusted for reverse stock splits) in February 2021.
2021 had also been the last strong year for the company, starting out with the announcements that Arcimoto had found a new manufacturing site in Oregon, as well as acquiring Tilting Motor Works, a company specializing in three-wheel conversion kits for touring motorcycles. Arcimoto had delivered its first electric trike all the way back in 2017. The Oregon facility had taken up production in March 2022.
“We have halted our production of vehicles and will require substantial additional funding to resume production, which may not be available to us on acceptable terms, or at all, and, if not so available, we will be required to cease our operations and/or seek bankruptcy protection,” Arcimoto wrote.
“The design, manufacture, sale and servicing of vehicles is a capital-intensive business,” Arcimoto added in yesterday’s filing. “We have previously raised funds through equity investment and convertible and non-convertible notes to meet our cash needs, but there is no guarantee that we will be able to raise enough additional capital in the short term to meet our ongoing cash requirements. Our need to raise additional funds to sustain operations and reach our vehicle production goals is dependent on how quickly we can secure financing and reduce the cost of our vehicles”