Arcimoto 2018 Q2 Earnings Update

Arcimoto 2018 Q2 Earnings Update


Good afternoon. Welcome to Arcimoto’s 2018 Q2
earnings update video. We do one of these each quarter
to give our stakeholders deeper insight into where we are as a company. Let’s go to our first planned rental location. Arcimoto’s mission is to help catalyze the shift to a sustainable transportation system, and we believe there are three key requirements to the product that makes that shift possible. it’s got to be useful for the wide range
of everyday driving trips, it’s got to be an order of magnitude
more efficient than cars on the road today, and it’s got to be affordable by the mass market. We believe we are well on our way
to delivering on that product vision. Our two overarching goals for the year
are to get into retail series production and to flesh out the end-to-end customer experience, and our rental experience centers
are all about that latter goal. And here we are. We believe the rental experience model
has several distinct advantages: a more capital-efficient pathway for
broad market awareness; maximum revenue generation from
our early vehicles on the road; and the ability for our customers
to experience the Arcimoto as if it were their own in beautiful destination marketplaces. We anticipate that our first two rental locations –
one here in Eugene, one in Southern California will be open in the next couple of months. And now back to the factory. In Q1 we mapped out four discrete
production series for the year. First, the Signatures
which we completed inJune. The Signature Series customers are
longtime Arcimoto supporters, who are even now giving us the benefit
of word-of-mouth in-market. We expect that will only increase as more
Fun Utility Vehicles hit the road. We’re now on to the beta. Just last week, beta units rolled off the line under their own power for the first time. The beta includes both significant improvements
and a reduced build time versus the early signature vehicles. We continue to make subtle refinements
to the product improved steering, improved ergonomics,
improved quality – as we move through the rest
of the betas and on to pilot. Our first physically destructive tests
correlated well with our simulation models, which means that we will be able
to optimize the pilot design with added confidence. All of the essential fabrication hardware
is now here, and we are beginning to to fabricate
end-to-end parts for the Arcimoto vehicle as well as the tooling necessary
for manufacturing and assembly processes. We’re now able to go from raw material through part cutting, forming, welding and final machining in- house. We have made significant progress
on preparing for the full pilot build where we will manufacture all of the custom parts
for the frame and chassis internally. We now have the very first pilot chassis
built on the floor. By the end of this summer,
we plan to have every component of this parts manufacturing puzzle
fully up and running in preparation for pilot build
in the fourth quarter In spite of the fact that we are holding off
on significant marketing efforts until we have pilot vehicles on the road our pre-order list continues to grow We started Q2 by ringing the closing bell,
and we’re coming up on our one- year anniversary as a public company. We’re now looking ahead to scale production
in 2019, 2020, and beyond. We submitted our first draft of Arcimoto’s $100M
Advanced Technology Vehicle Manufacturing federal government loan application, to dramatically
expand production on the West Coast as well as build an East Coast manufacturing facility. This is a truly exciting time. We’re bringing our retail go-to-market strategy
into crisp focus, our initial series of limited production run
vehicles are on the road our first beta units are on the road, and we’re looking forward to ever-increasing
volumes of successively more refined FUVs as we push to Retail Series production
by the end of this year. We thank you for your continued support , and look forward to seeing you on the road.