Arcimoto (Nasdaq: FUV) – Bonitas Research
Arcimoto (FUV) stock exposed: Bonitas Research reveals critical safety recalls, misleading pre-orders, and potential stock manipulation in electric vehicle manufacturer's questionable business practices.
Bonitas Research has released a scathing report on Arcimoto (NASDAQ: FUV), alleging the electric three-wheeled vehicle manufacturer has engaged in deceptive practices including misrepresenting customer demand, concealing critical safety recalls, and using undisclosed related-party transactions to artificially inflate its stock price.
Stock info:
- Ticker: FUV (NASDAQ)
- Position: Bonitas Research and its affiliates hold a short position in Arcimoto stock
Why it matters:
- Less than 5% of Arcimoto's touted "pre-orders" have actually been delivered (just 19 vehicles out of 422 claimed orders)
- The company has issued 19 separate safety recalls since December 2018, affecting critical systems including power, steering, and braking
- A November 2020 recall affected 100% of delivered vehicles, yet customers were not properly notified
- Arcimoto's "largest customer" (Arcimoto Key West) is actually operated by an undisclosed related party, FOD Capital
- Multiple "partnerships" (R-Key-Moto, Wahlburgers Key West) are connected to FOD Capital, creating misleading revenue reports
- The company strategically announced positive news (like the Orlando first responder trial) immediately after filing major safety recalls
- Even Elon Musk criticized Arcimoto's vehicles, stating "Can't support three-wheeled vehicles. Not safe enough" after experiencing a crash
The big picture:
- Arcimoto's November 2020 recall for electronic driver issues affected more vehicles than the company had reported delivering
- The company's "partnership" with Hula (a rental facility co-founded by Arcimoto shareholders) failed to meet rental obligations and later displayed competitor vehicles
- FOD Capital realized over 250% returns in less than three years through what appears to be pump-and-dump tactics
- Arcimoto's stock price jumped from $9 to over $20 within two days of announcing the Orlando trial—which was announced just one day after filing a major recall
- While promoting expansion into New Zealand via EV Distributors, there is limited evidence of actual vehicle deliveries
- Competitor Ayro has delivered similar electric vehicles without the extensive safety recalls that plague Arcimoto
FAQs:
What specific safety issues have been identified with Arcimoto vehicles?
Arcimoto has filed 19 separate safety recalls since December 2018, primarily related to power delivery, steering, and braking systems. These include unexpected battery shutdowns, non-compliant brake hoses, improper traction-power harness installation, and other critical safety components. The November 2020 recall alone affected 100% of delivered vehicles.
Who is FOD Capital and why are they significant to the Arcimoto story?
FOD Capital is a significant Arcimoto shareholder that also operates several of Arcimoto's "customers" and "partners" including Arcimoto Key West and has connections to Wahlburgers Key West. These relationships were allegedly not properly disclosed to investors, creating misleading impressions about market demand and adoption for Arcimoto vehicles.
How does Arcimoto's delivery rate compare to its pre-order claims?
According to Bonitas Research's analysis, Arcimoto has delivered less than 5% of its publicly announced pre-orders. Out of 422 pre-orders claimed across six partnerships since 2018, only 19 vehicles were actually delivered, raising serious questions about the company's ability to convert interest into sales.
What evidence suggests Arcimoto engaged in stock promotion?
The report highlights suspicious timing of announcements, such as the Orlando first responder trial being announced one day after filing a major safety recall. Additionally, the company's undisclosed related-party transactions, inflated pre-order figures, and the rapid stock price increases following promotional announcements all suggest potential stock promotion activities.
How has Arcimoto responded to these allegations?
The report does not include Arcimoto's response to these specific allegations. Investors should seek out the company's official statements and conduct their own due diligence regarding these claims.
What are the implications for Arcimoto investors?
The report suggests significant risks for Arcimoto investors, including potential regulatory scrutiny, ongoing safety concerns, questionable demand for products, and possible corporate governance issues related to undisclosed related-party transactions.
Disclaimer
This summary is based on a report by Bonitas Research. For the full, detailed analysis, please refer to the original source material: https://www.bonitasresearch.com/company/arcimoto-nasdaq-fuv/
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