On Thursday it looks like the sunshine state is throwing a little bit of love to under-the-radar electric vehicle play Arcimoto (NASDAQ:FUV). After the city of Orlando announced a new municipal partnership, shares of FUV stock are up as much as 30%. But what is Arcimoto? And what does this partnership mean for FUV stock?
To start, Oregon-based Arcimoto is a little different than other electric car stocks on the market. How? Well, Arcimoto is not exactly catering to the consumer niche in a traditional way. Instead, its main offering is the Fun Utility Vehicle, or FUV. This vehicle stands out thanks to its two-seater, three-wheel design. And importantly, the FUV is all about combining the environmental perks of EVs with the joys of a unique vehicle.
Investors should also note that while different, the FUV has many uses. As Arcimoto puts it, the vehicle is the safest motorcycle-class vehicle on the streets. Clearly, this is a fun stock to keep on your radar. But why is Arcimoto and FUV stock soaring higher today?
Well, it turns out that the city of Orlando wants in on the fun. In a new press release, Arcimoto shared that it will partner with Orlando to test a municipal fleet. Orlando Mayor Buddy Dyer has big plans to make the city more environmentally conscious. Therefore, his department as well as five others will try using Arcimoto vehicles for municipal purposes.
How will it work? Orlando will run a 90-day pilot program using the FUV and the Deliverator, another small-sized EV designed for logistics. You can expect the fire department, police department, parking enforcement and code enforcement offices to give Arcimoto a test drive.
FUV Stock: Arcimoto Rides Municipal Fleet High
Arcimoto has long been targeting municipal customers with its Deliverators and Rapid Responders. Now that Orlando is willing to try things out, this could mean business for the under-the-radar company is about to pick up. However, it is important for investors to remind that this is just a test. Arcimoto will still need to prove itself, and the viability of FUV stock.
Is there reason to be hopeful? Sure. Investors have already bought into Workhorse (NASDAQ:WKHS) for its reliance on the fleet model, and Lordstown Motors (NASDAQ:RIDE) has been trending higher for the same reason. If you listen to Arcimoto, it claims the small size and efficiency of its vehicles makes them perfect for municipal groups to respond to disasters and navigate city streets. If Orlando agrees, other customers could soon follow.
As always, do your due diligence. FUV stock is red hot today but it has a long way to go.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer for InvestorPlace.com.