Shares of Arcimoto (NASDAQ:FUV) rose 63.4% in January according to data from S&P Global Market Intelligence. The stock climbed early in the month following news that the electric vehicle (EV) company was making moves to expand its manufacturing capabilities.
Arcimoto published a press release on Jan. 6 announcing that it was on track to purchase a new manufacturing facility in Eugene, Oregon. The deal is expected to close at the end of March and will pave the way for the EV company to dramatically increase its production capacity.
Arcimoto's new 185,000-square-foot facility in Oregon will be roughly five times the combined size of the company's current manufacturing facilities. The purchase signals that the business is ready for a new growth phase.
Arcimoto also had some other acquisition news to announce last month. The electric vehicle company published a press release on Jan. 25, outlining its purchase of Tilting Motor Works in a combination cash and stock deal valued between $9.25 million and $10.25 million. The unit's tilting three-wheel technology will be the basis for new Arcimoto projects in the micromobility space.
Arcimoto stock has continued to gain ground early this month. The company's share price climbed roughly 6% in February's first day of trading.
The company envisions a growth market for its products at both the consumer and enterprise fleet levels, but whether these ambitions will pan out remains speculative. Arcimoto isn't the only player in the micro EV space, with competitors including Electrameccanica Vehicles and Kandi Technologies also vying for share in the category. However, Arcimoto's vehicles are clearly differentiated in terms of style and performance, and growth for the overall EV space may allow smaller players to carve out viable long-term niches.
Arcimoto has a market capitalization of roughly $785 million and is valued at approximately 36 times this year's expected sales.