Arcimoto (NASDAQ:FUV) stock is falling hard on Wednesday after the electric vehicle (EV) company announced a proposed public offering of shares.
Arcimoto hasn’t revealed the finer details of the public offering, such as how many shares will be included in the offering. The EV company also has yet to reveal how much it intends to offer FUV stock for in the offering.
What we do know is what Acrimoto intends to do with the money that it raises from the offering. The company says it will use the funds for general corporate purposes as well as working capital.
Why This Is Dropping FUV Stock
Investors don’t typically react well to news of a public offering. They see a given company increase the number of outstanding shares, which then dilutes the stakes of current investors.
In addition to that, public offerings aren’t typically made at market prices. Instead, they usually offer a significant discount compared to the stock’s market value. That’s another negative for investors.
With today’s news comes heavy trading of FUV stock. As of this writing, more than 430,000 shares have changed hands. That’s well above the company’s daily average trading volume of about 174,000 shares.
FUV stock is down 44% as of Wednesday morning.
Investors looking for all of the latest stock market news today are in luck!
We’ve got all of the most recent stock news that traders need to know about on Wednesday! A few examples include what’s happening with shares of Radian (NYSE:RDN) and Faraday Future (NASDAQ:FFIE) stock, as well as this morning’s pre-market stock movers. You can catch up on all that news at the links below!
More Wednesday Stock Market News
- Why Is Radian (RDN) Stock Up 5% Today?
- Why Is Faraday Future (FFIE) Stock Up 29% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Wednesday
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On the date of publication, William White 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.