Investigation of Arcimoto Inc.
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Arcimoto Inc. (FUV) Misled Investors Regarding its Business Operations
Arcimoto stated in press releases from 2018 to 2020 that they had received 400 preorders for their Fun Utility Vehicle. Arcimoto generated excitement for their vehicles by announcing pilot programs with various entities, including HULA Holdings, GoCar Tours, and Sol Mar Vida. On October 2, 2019, Arcimoto announced its first rental franchise to open in the Florida Keys. Arcimoto subsequently announced a municipal pilot program with the Eugene Springfield Fire Department and the City of Orlando. However, these statements were false and misleading.
On March 23, 2021, Bonitas Research published a report revealing that Arcimoto had misled the investing public by fabricating its preorders. Specifically, the report claims that Arcimoto only delivered 5% if its pre-orders. The report further stated that Arcimoto filed a total production recall notice with the National Highway Traffic Safety Administration on November 18, 2020, but “concealed safety concerns from customers and investors.” The report also revealed several related party transactions, specifically with R-Key-Moto the Florida Keys franchise, Wahlbergers Key West, and HULA. On this news, Arcimoto’s stock fell approximately 6.56% to close at $15.67 per share on March 23, 2021, damaging investors. The stock has continued to decline and now trades at just over $10 per share.