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Why Arcimoto Stock Fell 17.1% in February

By Keith Noonan - Mar 4, 2021 at 9:48AM

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Despite the recent pullback for the stock, Arcimoto still trades up roughly 609% over the last year.

What happened

Shares of Arcimoto (FUV 2.50%) fell 17.1% in February, according to data from S&P Global Market Intelligence. Growth-dependent stocks suffered a steep sell-off late in the month, and the electric vehicle (EV) specialist's share price closed out the period down double digits.

FUV Chart

FUV data by YCharts

Arcimoto actually hit a lifetime high early in February's trading. However, the company's valuation was dragged lower as rising Treasury bond yields and debate about how to value equities amid recovery from the coronavirus pandemic sparked sell-offs for tech stocks. 

Two people riding in an Arcimoto Roadster.

Image source: Arcimoto.

So what

Arcimoto specializes in three-wheeled electric vehicles. The company is aiming to expand in the consumer EV market, and it's also pursuing growth opportunities in the commercial space -- with a focus on tasks including last-mile delivery. 

Growth stocks have led the market over the last year, but recent volatility suggests that investor preference may be shifting toward less risky alternatives. The EV space has been particularly hot, and stocks in the space will likely see outsize momentum in conjunction with swings for the broader market.  

Now what

Sell-offs for EV stocks have continued early in March's trading. Arcimoto is down roughly 14% in the month so far. 

FUV Chart

FUV data by YCharts

The overall EV market is poised for big growth over the long term, but it remains to be seen whether Arcimoto's vehicles will catch on. The business appears to be scaling up quickly, but it remains at a very early stage, and charting its trajectory involves a high degree of speculation. Across the year ending Sept. 30, Arcimoto produced just 136 vehicles.

Arcimoto is scheduled to report fourth-quarter earnings on March 31. The company has a market capitalization of roughly $578 million and is valued at approximately 26 times this year's expected sales. 

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