Arcimoto stock was driven higher in February when Arcimoto Inc (NASDAQ:FUV) showed it had 3,018 pre-orders for its unique three-wheeled electric vehicle. At its peak, FUV stock spiked to $7.10 on the NASDAQ exchange on February 14th.
It pared most of those gains a few days later and settled around the $5 mark. But over the last week, Arcimoto stock has suffered from a notable decline—losing over 20% in a matter of days.
Arcimoto Stock
Now, FUV stock is selling for $3.77 USD. When we consider that (albeit temporary) spike in February, the current price represents a drop of almost 50%. With that type of volatility on our hands, is it simply too early to really get excited about Arcimoto stock?
We know there are pre-orders but “the world’s first fun utility vehicle” will only hit the shelves later this year. Is the hype fading or only starting? And is the potential real or not really? There are arguments for either way but here are some positives that investors should consider.
Potential for Success 1: Carving an Early Niche in a New Sector
Arcimoto is creating its own niche within this industry by developing not another car, but a smaller, quirkier three-wheeled vehicle which may, ironically, challenge the a-typical car model.
>> GOGO Stock Recovers 73% Since December: How Far Can It Go?
It’s a smart move that places it in the center of the booming electric vehicles market, without having to compete directly with the much larger, more established EV makers.
Unless, of course, Tesla (NASDAQ:TSLA) has its own fun utility vehicle it has yet to tell us about?
Arcimoto Stock Potential 2: Urban Communting
With increasing populations in our cities, and congestion a real issue, people are needing new ways to get around. Downsizing from a car to a two-seater buggy may become one way to do this. It’s cheaper to run, easier to park, and has some, albeit not a lot of, space for a few groceries or a passenger.
Imagine the potential if governments pick up on a “drive to work” scheme using these utility vehicles, cutting costs, congestion, and pollution in one move.
Potential for Success 3: Early Market Advantage
Arcimoto is one of the first companies to bring to market an EV vehicle that is not a car but also isn’t another scooter. If it can find success with its niche, then we could be looking at an early market advantage stock. Effectively, Arcimoto will be the original maker of a model that is soon copied by every brand and their grandmother.
Even though competition would inevitably spring up with various takes on the same theme, Arcimoto will set the standard and be the original. People like originals.
Arcimoto stock is a tough call because sales haven’t started, so “real” metrics are not going to tell investors much. The sector the company is in, however, is surging, so for that reason alone, there may be value in holding FUV stock for a while.
Featured Image: DepositPhotos © macor
