Invesco Is Giving Up on Arcimoto (FUV) Stock. Should You?

  • Invesco (IVZ) has sold all 2.27 million shares of its Arcimoto (FUV) stake.
  • The company is currently in the process of releasing its Flatbed electric vehicle.
  • Shares of FUV stock are up by over 20% year-to-date.
FUV stock - Invesco Is Giving Up on Arcimoto (FUV) Stock. Should You?

Source: Pavel Kapysh / Shutterstock

Arcimoto (NASDAQ:FUV) stock is down by more than 95% year-over-year, and it looks like a major institutional investor has thrown in the towel. Arcimoto operates as a clean energy company with a focus on small, efficient electric vehicles (EVs). The company’s flagship vehicle, called the Fun Utility Vehicle, has a starting price of $17,900, a 102-city-mile range, and a top speed of 75 mph. The FUV is currently available in 13 U.S. states and in Washington, D.C. Furthermore, the vehicle is also available to rent in select locations with a focus on tourists.

Arcimoto also offers its Deliverator vehicle. As its namesake implies, the vehicle was made for deliveries. Like the FUV, it has a city-mile range of 102 miles and a top speed of 75 mph. Prices for the Deliverator start at $25,000.

The company’s Flatbed vehicle is currently listed as “coming soon.” It has the same city range and mph specifications as the FUV and Deliverator.

With that in mind, let’s get into the details of the institutional sale.

FUV Stock: Invesco Sells Its Entire Stake

On Jan. 10, the U.S. Securities and Exchange Commission (SEC) received an amended Schedule 13G filing from investment firm and exchange-traded fund (ETF) provider Invesco (NYSE:IVZ). The form showed that as of Dec. 30, Invesco owned a total of zero shares of FUV. According to Fintel, Invesco last reported owning 2.27 million shares. That means that the firm sold its entire stake, likely for a significant loss.

It isn’t exactly surprising to see Invesco sell out of its position. In the past year, EV companies across the board have dealt with a series of difficulties, including inflation, lowered consumer sentiment and supply chain inefficiencies. On top of that, Arcimoto is unprofitable, reporting a net loss of $17 million during Q3, which is equivalent to an earnings per share loss of 17 cents. In a high-interest-rate environment, unprofitable companies are highly scrutinized.

Meanwhile, Arcimoto’s production is growing but still minimal. During Q3, the company produced 150 FUVs and delivered a record-high 74 vehicles. As of Sept. 30, there are a total of 474 customer-owned FUVs on the road.

On the date of publication, Eddie Pan did not hold (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.


Article printed from InvestorPlace Media, https://investorplace.com/2023/01/invesco-is-giving-up-on-arcimoto-fuv-stock-should-you/.

©2024 InvestorPlace Media, LLC