Adapting to New Possibilities

Christopher Dawson takes over for Interim CEO Jesse Fittipaldi, who will become Arcimoto president, reporting to Dawson.

Dawson joined the Arcimoto board last summer shortly after founder Mark Frohnmayer’s abrupt exit as CEO. That began a period of turmoil as a collapsing stock left Arcimoto (Nasdaq: FUV) without a funding source that had carried it through disappointing sales growth since going public in 2017.

Mounting losses forced deep layoffs and furloughs and pushed Arcimoto to the brink of bankruptcy in January before it eked out a $12 million stock sale and landed a $6 million loan.

But Dawson, citing his tenures at Tesla and other EV startups and Arcimoto’s “good bones,” said he was confident a leaner Arcimoto can survive and claw its way toward profitability.

“There’s enough potential economic energy in what we have in the factory to keep Arcimoto moving throughout the year and increase our sales, delivery and output by Q4,” he said. “We can do it without raising additional funds. (But) we will absolutely raise additional funds because it allows us to move more quickly to that target.”

Seven years at Tesla

Arcimoto Appoints Tesla Veteran Christopher Dawson As

CEO

Pete Danko | Portland Business Journal

“There’s enough potential economic energy in what we have in the factory to keep Arcimoto moving throughout the year and increase our sales, delivery and output by Q4,” Christopher Dawson, the new Arcimoto CEO, said.

Arcimoto, facing grave financial circumstances, has tapped a board member with Tesla experience as its new CEO, the Eugene electric vehicle maker said Thursday.

Dawson spent two years as a contractor at Tesla (Nasdaq: TSLA) beginning in 2012, then five years on staff, eventually becoming senior manufacturing engineer and maintenance manager, according to Arcimoto. An MBA and Navy veteran, he has also held executive positions at startups Nikola Tesla Co. and Atlis Motor Vehicles, an Arizona company that is facing its own difficulties.

After halting production in January, Arcimoto restarted production in March. It is making three vehicles per day now, Dawson said, ready to scale up as sales dictate. A daily workforce that once topped 300 is now at about 110, the new CEO said.

The company sold 228 vehicles last year, up from 192 in 2021 and 117 in 2020. It had revenue of $6.6 million in 2022 and a bottom-line loss of $62.9.

“I think we can sell in excess of 400 units this year if we execute on all our marketing,” Dawson said. “That’s the bottom end. To be frank, I would be disappointed if we only did 400.”

Announcements & Releases Continued

Narrowly targeting its efforts at likely buyers will help boost sales, he said, describing that demographic as upper-middle-class people with second homes looking for a vehicle for running quick errands and getting around town.

from outside North America to North America. Reshoring includes work that is produced either in-house or outsourced. A complete definition of “reshoring” is available here. Applications must be submitted by June 30. To view award details and enter to win, visit this webpage.

“There’s some basic kind of housecleaning that can happen at the manufacturing level to really help drive” efficiency, he said, adding: “When I say there’s massive potential in that factory, it comes from 10-plus years of experience of automating specifically electric vehicle processes.” materials and services to the industry.

“From 2010 to 2020, more than one million jobs were announced as coming to the United States from offshore. This is a tremendous achievement, and we seek to motivate and honor the companies that have made reshoring a reality,” said Harry Moser, founder and president of the Reshoring Initiative.

The Association For Manufacturing Technology (AMT) represents U.S. builders and distributors of manufacturing technology – the advanced machinery, devices and digital equipment that U.S. manufacturing relies on to be productive, innovative, and competitive.

Arcimoto put 144 vehicles into rental operations the past two years, a significant deployment of capital, but in the fourth quarter last year the number dropped to zero. Trials at rental can lead to sales, Dawson said, but the company needed to continue to be careful about the assets it sends into that channel. It has moved some vehicles out of rental and put them up for sale, and could do more of that, he added.

Questions about the National Metalworking Reshoring Award can be directed to Harry Moser at 847-867-1144 or harry.moser@ reshorenow.org. For more information on AMT’s efforts on reshoring and supply chain efforts, visit IMTS.com/supplychain.

In a news release, Frohnmayer, who remains chairman of the Arcimoto board, lauded Dawson’s appointment.

NTMA is the voice for the precision manufacturing and tool and die industries in the United States. Backed by nearly 1,300 member companies, representing more than $30 billion in sales, NTMA provides an array of benefits to members and the industry including advocacy in Washington, training and education programs and networking events nationwide.

“I’ve had the pleasure of witnessing his no-nonsense, roll up the sleeves style, and appreciated his intentional approach since his appointment to the board of directors last summer,” Frohnmayer said. “His extensive experience and laser focus on efficiency is essential in accelerating Arcimoto’s next phase of growth.”

The Reshoring Initiative, founded in early 2010, helps manufacturers realize that local production, in some cases, reduces their total cost of ownership of purchased parts and tooling. The Initiative also trains suppliers how to sell against lower-priced offshore competitors.

‘Product profitability’ in fourth quarter

Meanwhile, Arcimoto will continue to find efficiencies in its factory, Dawson said. Arcimoto’s cost of goods sold was nearly four times its revenue in 2022. In other words, it lost big on each FUV sale. Dawson said the company would achieve “product profitability” in Q4 by improved processes and also because it already has “tons of parts on the shelf” ready to use.

PMA, an inaugural sponsor of the National Reshoring Award, is the full-service trade association representing the North American metalforming industry — the industry that creates precision metal products using stamping, fabricating, spinning, slide forming and roll forming technologies, and other value-added processes. Its

The Benefits Of Worki ng With P4Swiss / Lindel CNC Machining

Along with the Dawson, Fittipaldi and Campoli moves, Arcimoto said Thursday that Dwayne Lum, previously chief product officer, will replace Terry Becker as chief operating officer as Becker moves to lead Arcimoto’s Tilting Motor Works Division.

Founded in 1987, Lindel Precision CNC Machining merged with Precision 4 Swiss in 2019. Together, P4Swiss / Lindel CNC Machining is dedicated to providing quality CNC machined parts at