FUV - Earnings call transcript Q2 2019

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Greg Falesnik

Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to Arcimoto Second Quarter 2019 Earnings Webcast.

During today's presentation, all parties will be in a listen-only mode. This conference is being recorded today, August 14, 2019, and the earnings press release accompanying this webcast was issued at the close of market today.

turn over I'll of Frohnmayer, time, Arcimoto. this the Mark call CEO At is the yours. Mark, floor

Mark Frohnmayer

actually Greg good happy short into outline a you, you out to milestones Arcimoto here this Thank our the as not and I'm by out of in beautiful ahead. is call. going who Eugene, day giving who tour a of story. a for those to vehicles Then Talk play for Oregon, a onsite. road are then to video factory a compliance I'm brief have about and going to about those delivery having afternoon be been on start everybody. recent remaining It the bit do and company. to our of get

shift is to sustainable mission transportation Arcimoto's catalyse system. a So, and

mission We company, on solve the this to problem trying are screen. a driven

are We growth after upward is of particular And going the is exponential the transportation on that inconvenient transportation that and problem. a truly carbon atmosphere, we're strong right piece everyday now of the of piece big in climb curve a mobility. in

we two looking use is between the footprint that of at those on road at or today, the way typically So vehicles, the one a time. which the and vehicles disconnect actually

innovation You not the lower cost. in traditional can a in one of is a a much think story, we sense of of, market that threshold but more for Clayton disruptive Arcimoto classic the a everything disruption is as see kind at sense disruptive Silicon utility Valley, Christensen

that versus order we're a of lands that And than cart rather the a at of is electric or disruption thesis think company. the wage, average golf where the piece of cost, key Arcimoto point battery, the vision, car, shaving And of footprint new three -- the looking the price cost a car. of versus really to Arcimoto a you in hit so vision quarters the to if two-thirds the would big of car used or toy a

all threshold product the threshold of of Arcimoto meet efficiency So the wage utility that were platform. eight generation finding the years the company eighth disruptive that foundation that is finding and about the new cost at first level that would utility actually and

So for that vehicle from venture perspective a the big market the takeaway huge. us is is

year, If XX $XXX XX slices various going vehicles a market of with you a the look a at and two cars, billion new million parcel looking the in delivery every platform. produced years. XXX the these single market all motorcycle $XX delivery, market million addressing next year them at And from to billion vehicle a

So facing the brand, Utility platform a from sustainable a transportation Fun quest consumer with where starts Vehicle consumer for started the we solution. Arcimoto

that product two basically park a we the have of comfortably, out two large very really a So be I'm to is from it's to on product, with of lead four, road space important six seen. the a we comfortably fit Arcimoto the in guys think sizing carries differentiator our every three vehicle significant that a other passengers foot consumer And dummy able can to for sort at to vehicle.

is picture Parking This call Standard. feature Rockstar the Comes we

the has enclosure easy as to environments, a terms well really reducing include exceptionally urban and of version vehicle. also and implications, direct benefits manoeuvrable driver can only cost the it's in incredibly doors, of But everyday not has plenty frustration, of both on. range, for vehicle So through the so four delivery park is that as storage

product the Arcimoto we of version announced announced actually -- second this family the that earlier platform two on additional we year. So products

two last mile pattern market delivery. Amazon companies are day directly this space after is and going in the we going from are where Deliverator the was them of shifting like delivery delivery delivery to One one very time incredible new vehicle to in of a delivery, call Those of on platform. packs vehicles. amount Deliverator of day an space new to delivery small And storage models just types the for one

So of vehicle the of the implication the bottom both delivery have the line direct of for and Arcimoto parkability services. on Arcimoto, benefits the manoeuvrability benefits of

the And then and of Responder, finally, which them response. platform we security, takes introduced enforcement applies Rapid and emergency Arcimoto the benefits the to law

both development So Utility of we They the process. vehicles the are the terms prototyped. follow Fun rapid Deliverator the in and that responder Vehicle have will

Vehicle on the for Utility once process we and this actually then So the finalized we later finalization year delivering will have are those to begin Fun customers products. two

-- three Arcimoto platform Vehicle. all that with the XX% we're of basically and be is vehicles the estimating the on platform Responder the market Deliverator of that Rapid on real much Utility One parks shorter we're plus shared, a development will expecting advantages product XX% about than the the from cycle Fun the of those on of entry meaning

initial plan our entry experienced market So around is rental. based

traditional to the franchise you of and a buys So of course from different think where of cars, or model vehicle vehicles a generations manufacturer can dealerships then go-to-market takes franchisee set sells margin being strategies, for three a lot that's vehicles that a them up customers. electric said of that of the out and have not leaves well middle. others Tesla -- that

with it opened And and investment operational that overhead. to so course consumer direct significant retail up of stores capital carried

Hertz franchising experience instead product vehicle company we our own are model and manufacturing in the of rentals We -- the a unlike But ultimate is where rental the franchising unique vehicle Hertz, win-win process like would. own market. as sales, we vehicle believe that

ever top will of franchisees customers, we'll line rent bit And our to for so take them then and vehicles and fee off franchise little forward. purchase the a

And in-market driver that vehicle for key be going the our experience. to is

own you the a or coming we with your in vehicle day taking an And you rent a you half have store a come convinced into then up reasons of So you why driveway. lots for a a are instead have day. end test and day, full that of for of drive, Arcimoto will of that should by

a and a in we Rica, Costa GoCars partnership with Francisco. rental -- this partnership have announced in last We several San quarter in partnerships in two, announced

for of They and vehicles are have vehicles. familiar with little So they're their XX about going three-wheeled out of fleet you very world, of capitals coming those key those the with actually degree high tour replace half to of market, soon San the the Francisco of product. of about the have visibility technology we'll gates Arcimoto's. are And who the one GoCars in the a after launch we

couple our finalizing years have last, plants provisioning our spent initial offering, production, the public last the We of preparing manufacturing and from almost since product.

manufacturing really Arcimoto embodies production plant the model. So our

a microchip. I think like this of somewhat

factory areas scale. in build the within those to We the are be replicated areas have footprint. And functional designed order to

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this that as We full a the And have from Monday. week vehicle and on test anchorages XXth, validated a we is final confirmatory doing sled morning. are of those docket that's belts for August

-- those out So sleds tests on make the will Saturday country. and go trek across

stakeholders. continues access And attract In we similar funding, the our to financing terms and terms. to are to favorable on company believe expect on of to favorable substantially we financing additional Arcimoto that terms

rest will Rapid -- for obviously So this deliver Fun our the the Utility and of of team Edition key Deliverator. hundreds production Responder and into get complete year, Vehicles. be We'll Evergreen engineering goals

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are soft time and production volumes, doors. -- on for preparing upgrades, in things full We Evergreen the development size following going well half like we're doors be vehicle of options for mass we're that to down soft the and the production air both charging doors, conditioning, at soft At years. same path once the initial

deliver. So again, one is step

anticipating production. We that starting and will we are be delivering

Fun This first quarter now, begun inventory Vehicle. very are that the up white vehicles and building have producing was we actually Edition vehicle Evergreen Utility

an a X,XXX to the then which the as of the per average to and XX error rate And $XX,XXX. of week, We had is XX this two, at anticipated per of as sales revenue. the XXX in is preorders of million on that within of ramp year. up production of at at actually to the look there quarter, anticipated is plan then And equivalent quarter price $XX units XX,XXX this units months, as we slide, end end an

in -- within invited One speak are quarter basic just back over Arcimoto talking in units ultimately from in and then in see scale began saw up planet. functional of design, and functional at And Southeast we in in our replicate actually factory Asia, it really University was solution program in two, Genuity's a to those those for own very the also that telling conference, factory audience. have take the as Korea. replicate anticipating a Taiwan, amp capital in Singularity We the flexible reception We is And the model headquarters. story problem. and great got I we to a the units Boston that global box at transpiration is two So larger we a China, Thailand, take Summit global to a efficient the Arcimoto global of Arcimoto manufacturing platform we process. all about built, the Thailand, Canaccord to vision step

family, terms really in really out you like power, and what over key what for as battery out heads at the terms product potential look for show this in cost we revenue which of very well our that see years. we broad years, long-term looks -- our objectives As both purchasing where in the the is is reduction over of the our generation, the as coming one as just potential strokes are to of

So a sector. little note about the

We are an company. electric vehicle

from are And sharing the opportunities. We is mile as to a -- in much suited being trend transport, of confluence daily ideally rental, market, to as the transition major We we this fully mobility into platform really to every pools. last today. see begin platform building vehicle at to sector have and that vacation Arcimoto investment on at delivery delivery of we reasonable the pretty autonomous opportunity to larger a the is tapping we we valuations production out in amounts at when going rest those see into and -- the would that significant of the company, look

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Mark Frohnmayer

has there special like process is and a states -- which Vehicle to out class broad by XXXX, was. Motors, side, largely Administrators, in been and effort auto -- auto So done XXXX. is. drives as was of called standardize like Motor a was what three has lot of That that helped actually a an to car came which is that then is wheeled We cycle the the or work put that vehicle for what American AAMVA, that Association Elio in an definitions with

into -- the vehicle, we it Arcimoto the doesn't a is been fall handlebar so have cycle as particulars categories. steered And auto of it those

XX state-by-state have up Arcimoto all we I basis, license helmet the of require states for require So ages on a XX. motorcycle about to that early on We, over year, use the to that don't now been we've states, order states of focusing a our on to working the five There the Arcimoto. drive a first. gone key are from this course only believe,

far, reception carbon and And So pressing is to -- state the warm the learning we've we've have so curve really that vehicle takes for reduction seen one, who and zero. actually significant see made intuitive progress from incredibly goals. need -- operate. vehicle legislators solves easy is the that a basically It

going had expected roll where we've we're going vehicles particularly and we to effort, into large receptive audiences on continue we So out market. have that as road. We're once production

the And future. that right leveraging as interested their to and legislators both of expect are well of lobbing we with community I customers should we to potential our more also preorder customers, do those help in pushes. add that as

in are erode have already market a are resources"? not, plans scooters, combat sustainable what you think -- provided why in them? shift Lime of urban "already So not? bottom they next, the such the end areas and potential as to your Spin so, going If since do If electric to

We the into, fall would micro-mobility are the categories. actually really actually that which -- that is category see the mini-mobility, Arcimoto and those complementary that

of community vehicle a of goes mile really can all Arcimoto in last electric clean push scooters the do scooter. XX transportation. and of It's solution more XX the really and to factor on your roads, audience much as get miles transportation. electric fun We electric much that the so bicycles the, But comfort, Arcimoto form last wider solution. still benefits can all you last and of small look the than exposes aspects at the the over yet the So the the mile a fun for maintains the --

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that that of and the our plan. is anticipating XX% eventually balance go going this will probably And -- the so in vehicles. about consumer has always rental to vehicles been We're market with operations fleet to operations

expect process. little you very would this we I finalization will all it the be because with Thank so than up much probably And bearing preorder demand have our so ramp through patience pent initial customers. vehicle just less that very, from us bit a for for that

We refinement are the made confident continued changes we that wait. made and it worth the have the will have

a respective is year, buyers? going to the plans for mile maintenance with production three and with on warranty outlets, then the XX,XXX double soon, variety So where market to planning We're -- we So warranty. we a the to service We're come rental scheduled road markets service centers. ways. explain some first and in vehicle service In rental major hit providers. Arcimoto of talking our as also doing will will in outlets, have

And Arcimoto. to so of on option, automotive drive-way. service So in do basic service can service ware mobile service then the all items the a have plan also your those basically who we basically

going of fund of that line cash of looking of is parts we're next looking are ramp. going credit the at point to we're production to where of the XXX a step of see get function once per until is the production to the we're and And volume the month. fund a tools production will the it? a $XXX stages I on a So we primarily increase to next company. you growth for we're an inventory much production relatively slide Basically, at up. of basically, the But to to needed How sustainable that variety of deliver tools a -- basically week, is up. get is consistent scale how low cost that rate the reduce and to at we that's a really have step a just push we at around here a stay We're year. hit volume think stay then late middle key step are to to And anticipating consistent one market major basically we'll volume, and at -- going into to planning target that

facility per in then place subsequent vehicles we we Eugene to that a piece happen? So the is pilot hit probably tools the not week order can on going we per have now. manufacturing factory? next our in that Can XXX our question to has is So to in teardowns. address in your the get question, week line the builds I'm to need with get be storage. that major that you current believe and based XXX have production volume to what facilities and number anticipating that to park we'll the that If

the for line -- currently, is and for up in have it, that But manufacturing space up set we it. is progress. So the works for is set inventory don't the equipment

is we located, space open actually us. of we So are where have plenty around nice the thing

we or will build We could have the put a parking a or very large up that a structure in, fit. that lot tent like

forward, course can to more hit want think where production So we're hit, need we order we to space. do that In beyond of going we'll that the we volumes at. that

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and the rear, belt belts. do and So will have the model actually a easy -- belts point sort It's limiter. and the borrowed in actually both to is seat we out is used is, CX. plus X and a of that the there of the no to belts front in are same point front this that question load limiters? attempt the no X the and X closer X Will pretensioners is it's a same in in functionality We Next using is the a in rear? there seat of. conventional be point But X belt, but from get BMW to load pretensioner, get

expecting next in to do your We vehicle? And our you this question is, expect broader deliver are quarter. really first to when first vehicles

we'll to on the test assured within documentation of reports a come there that And that you steam can bit look weeks. is next with so as quite of customers. ahead, And really at couple the be of our them team the additional fold will But all done you full, all to it at our full in. road vehicle be basically, get if And vehicles then a, into working milestones be out certifications. the testing is we possible them the compliant

vehicle. us. brought of happy what bit. the we the road and with me, everyone to I are happy the champing very on And nobody get our the of has really very than vehicles hands take understand at this we the in customers. process performance We're Believe the more So with

a i.e. entry? you to patents position value is next So barriers question. how plan protect and good question your This do and to proposition, is,

of has basic architecture. two Arcimoto key patents, vehicle a on So handful the

It very real even three a to and do is wheeled And two how for larger on though really So innovation carries a space. that to a a yet you patents is footprint do light vehicle you the that have those like fighting build on vehicle comfortably, stable how small that architect fits platform make been all small large the three feels that we platform is it are it vehicle about what adults vehicle about. our -- is road, the balance are weight. much

on has key applicable patents mechanical also And play in is train, story. have gear a motor power that battery that patent our higher would to interconnect part barriers drive the in both box. we interconnect, a and dual that certainly are We of terms which really nice our I crimp-based of that's of entries say of batteries. to novel we'll have electrical what patents, a properties a properties

with market, mass to real a space. solution innovation first think micro-mobility for continued I in market the the

getting brand, opportunity for a solution So new we that internal to branding were, or people where pure new we and on. existing products are. a not And so not where then that combustion focus who by down electric a are on is weighed engine that shooting relentless is market and

Next question mind Yes, in do. is, do definitely you have for any other we yes. Well, vehicle future? the types

be you how is do the raise need Would when this much? through share a again Arcimoto is funds slide funding addresses. there on Actually Next, project debt? to to offering and

We most favorable on be to substantially actually that the filing. in financing be on and attract can that access favorable you believe to our our we company recent able terms And to similar are to to to stakeholders. able we And expect continue what financing terms. see additional

does peak day. to and produce is, vehicle how it -- our question vehicles we one a assembly vehicle? at disassembly We, long three take process, round-robin we during Next peaked

week per by day? we a are actually minutes. XX that's vehicles per XXX producing now. on And one that ramp will rate, at we production rate are We rapidly then every expect market, vehicles the that to And up one per basically once we're vehicle time day actually we that in five

have the more we November? -- left to successful the question be updates been is, very the or truly releasing Well, a month building until and moment something the on are have to exploring that wait the we at on get will time, will see vehicles certainly basically if and market, will quarter, know testing, long towards roads one announcement. and there's we the This you you champion periodic there happens. bit in and next in Are certification this into is vehicle we are will for quarter, you that

of effective silicon in silicon with at cost are Are they sold become the you marketplace. scale lithium We as and possibility using batteries exploring to battery open the future anodes? technologies

We are actually are own manufacture. not out We modules cells. battery our -- build a not we of battery cell

are du partners. solid whatever. really the So I of through say, jour, our going the chemistry to a scale would we or to open new next it depend in definitely is to whether just when possibility using or production those different anode-cathode technologies electrolyte on construction, and us are It's accessible at

a Next mission if on are merger question We views is, Arcimoto opportunity driven presented a is company. are itself? what -- buyout so the Arcimoto's

we solution to to can shift mission could is But decision lens. particular sort make with Our accelerate right that sustainable of would -- system. that the a see again, partner, the that transpiration the catalyze a through we mission. right I partner, that acquisition

is, it purchase on the be looking U.S. compliance, compliance question we here final So then focus is UK our moment in market U.S. purpose into -- at getting then up are the road today through And the European would we're base? And for next. international

and of then of And in yes. elsewhere world market course, then also we're the So, both terms production? looking in

finalized a the be to yet to white that the vehicle final is, The and have but video, be showed you for provided complete, customer? in items is terms in complete one the So is that question vehicle of certifications. will is the

a turn photo going customer. signals the is an it's production be a cover marketing So That and then are one one vehicle. basically is that that Arcimoto it vehicle. panel But behind the vehicle provided to place complete one close body was -- was on vehicles on that that will otherwise, for the there internal actually in line. be to hinge was the not That in front customer very not the part

certification our vehicles are that and Some of awaiting delivery. for first just final right very in customer simply now, build

you participating and all afternoon. August you you a for channel this on tour, over thank that to that, out large to would the with I It's call. for factory your thank it all And and all, -- nice crew choppy So YouTube coming if such support. summer our head evening. little if remind have through to afternoon on a was check

Greg Falesnik	Investor Relations
Mark Frohnmayer	Chief Executive Officer

Arcimoto (FUVV) 14 Aug 192019 Q2 Earnings call transcript