The shares of three niche electric vehicle (EV) producers are skyrocketing today as investors begin to familiarize themselves with these unfamiliar names. Stocks of ElectraMeccanica vehicles (NASDAQ: SOLO) and Arcimoto (NASDAQ: FUV) are up 18% and 26%, respectively, at 11:45 a.m. EST. The two companies manufacture different types of three-wheeled electric vehicles.
And shares of ad hoc acquisition company (SPAC) CIIG merger (NASDAQ: CIIC) are 25% higher today. The company announced yesterday that it is merging with electric van and bus maker Arrival to make it public at the Nasdaq under the new stock symbol ARVL.
Arrival will begin production of its bus and van in late 2021 and 2022, respectively. Image source: Arrival.
Arrival will earn $ 660 million in revenue from its merger with CIIG, and the combined company will have an enterprise value of $ 5.4 billion, according to PSPC. CIIG claims that Arriving’s production method allows it to price its electric vehicles at levels comparable to alternatives to fossil fuels, and significantly lower than comparable electric vehicles “using its proprietary hardware, software and robotics technologies and its low-cost micro-factories “.
ElectraMeccanica and Arcimoto both produce three-wheeled electric vehicles designed for specific purposes. ElectraMeccanica bills its $ 18,500 Solo as an urban transport vehicle, with its maximum range of 100 miles and top speed of 80 mph. Arcimoto’s Fun Electric Vehicle (FUV), which starts at $ 17,900, has a similar range and a top speed of 75 mph. The company also offers its Deliverator and Rapid Responder with similar specifications, but tailor-made for parcel delivery and emergency response, respectively.
An Arcimoto fast answering machine. Image source: Arcimoto.
Investor interest among electric vehicle manufacturers extends beyond cars and trucks. Over the past month, shares of niche three-wheeler makers Arcimoto and ElectraMeccanica have risen more than 80% and 185%, respectively.
As sales start to grow, businesses are just getting started. Arcimoto began production in September 2019 and produced a total of 136 vehicles as of September 30, 2020. Its recently released third quarter revenue was just under $ 700,000. The company also recently announced a new product, the Roadster, to compete in the recreational motorcycle segment.
ElectraMeccanica is also offering its own classic car-looking four-wheel, two-seater eRoadster, which will start at $ 124,900. This compares to the company’s recently reported third quarter total sales of about $ 230,000.
These three companies are just getting started. The arrival is not yet in production, but plans to have four different bus and van platforms in production from 2021 until 2023.
Investors interested in the EV space in general are just starting to notice this. The wave of all-electric transport will not be limited to the simple replacement of existing cars and vans. There are other niches that are likely to develop. It’s too early to know which one will succeed, but investors seem to think these three companies are off to a good start.
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