Arcimoto (NASDAQ:FUV) stock is on a wild ride today after the electric vehicle (EV) company revealed plans for a strategic restructuring.
According to a filing with the U.S. Securities and Exchange Commission (SEC), Arcimoto plans to cut payroll expenses by 32%. The company is doing so to better focus on programs that generate revenue.
What program will this have Arcimoto focusing on? The company says its revenue-generating programs include FUV consumer sales, Deliverator fleet sales and rentals in certain markets. It also notes this will put some of its long-term plans on hold as it focuses on core products.
What’s Behind the FUV Restructuring Plan?
Jesse Fittipaldi, the interim CEO of Arcimoto, shines some light on that with a statement in the SEC filing:
“Today’s cost restructuring is a direct response to the macroeconomic environment conditions and supply chain issues we are facing, requiring us to be more disciplined and laser focused on the areas of our business that are most critical to achieving profitability.”
FUV stock has seen some volatile movement since announcing the restructuring plan. Initially, the company’s stock dropped in reaction to the news. This saw it close out Thursday down roughly 7%. That negative movement continued this morning, but shares have started to bounce back. As of this writing, FUV stock is up slightly.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.