Arcimoto, Inc.

I want to welcome everybody to Arcimoto's first stakeholder webinar of 2022. We're going to start with a short recap video from the ramp-up factory opening event that we held last month. We'll share some short remarks, introduce one of the new members of our executive team, and then open the forum to questions from our guest analysts and stakeholders on the SAFE platform. If you have not seen the full ramp it up presentation, I encourage you to watch it at your leisure. There were, there was more good stuff, including doors and some, a bunch of different technology advances that this recap doesn't have time for. So, okay. With that, here we go.

We are going to go into the new building a of the ramp. Come on in folks. Ladies and gentlemen, the founder and president of Arcimoto, Mark Froehmeyer.

We are Arcimoto. We make the best electric three-wheelers in the world for a purpose. Now it's time to ramp it up. Welcome to the ramp. In 2020, we laid out the big, hairy, audacious goal of opening a new factory by the end of this year that, once at full capacity, would be able to build a targeted 50,000 vehicles per year and provide the template for global replication. One bit of housekeeping. Arcimoto is a public company with a public mission. So before I go further, I'd like to draw your attention to our safe harbor disclaimer. We took possession of this facility in Q4 of last year and transformed it at light speed, reconditioning building A where we are now, moving the assembly line over from the amp, and booting up our automated plastics line and new machine shop by the middle of the first quarter. In spite of a global pandemic, Arcimoto doubled year-over-year production in 2020 and tripled production in 2021. Even considering downtime due to the transition to our new facility and validation of new battery cells, we plan to triple production again this year, after which we take the big steps up. The foundation of every Arcimoto we build today, the root of our many shots on goal product strategy, is our unique, ultra-efficient EV platform that packs an incredible ride, outsized carrying capacity, and flexibility for a wide range of daily trips in a right-sized, human-scale footprint. All of our products, the Fun Utility Vehicle for everyday driving, rideshare, and rentals, the Deliverator for last mile delivery, the Flatbed for general fleet utility, the Rapid Responder for emergency services, the Roadster, a pure on-road fun machine, and the Cameo for filming and events are largely the same, sharing the same production line, parts, and economy of scale. The key to scaling Arcimoto to mass production, therefore, first and foremost, is to make the platform itself more scalable. At our factory opening event earlier this year, we showed the first computer renderings of One.X, Arcimoto's refined platform design, the ongoing development effort of Arcimoto and its critical industry partners. Featuring both mechanical refinements and major simplifications in the electrical system, 1.X will unlock the big steps up in scale. We're aiming for a 7X increase in production next year, up to maximum output for the facility in 2025. As we accelerate our push to scale, we are also accelerating the growth of our market presence. The FUV and the Roadster continue to receive rave reviews from demo riders and journalists alike, adding confirmation to our belief that Arcimoto delivers the most joyful ride experience of any vehicle on the road. In order to maximize the number of people who get to enjoy our unique ride and drive exposure for the Arcimoto brand in the most capital efficient manner we can, Arcimoto is hitting full throttle on our demo rental program with the long term goal of turning that first time new user experience of a vehicle into a profit center for the company instead of a cost sink. Late last year, we began earmarking a significant portion of our limited production output into this program, and we plan to accelerate that this year. For our commercial and government fleet options, early trials of the Deliverator, Flatbed, and Rapid Responder have provided invaluable feedback as we aim for volume production of these products. And at our ramp launch, we gave the first sneak peek at the Smokejumper initiative. A rapid response, first on the scene, Arcimoto augmented with a firefighting technology portfolio that uses significantly less fluid to extinguish blazes. We are now working with ecosystem players to flesh out the full suite of offerings, including leasing options and broad service to provide turnkey solutions for fleet adoption. As we look forward, we see the platform itself becoming a key standalone part of the portfolio. We aim to make the platform accessible to a wide array of users, other vehicle makers, schools and research institutions, and EV enthusiasts. This Arcimoto Platform initiative will be a true hardware API for sustainable mobility. And at our ramp it up event, we announced that FACTION, a Bay Area driverless vehicle endeavor, is our first API partner, as we jointly demonstrated FACTION's driverless delivery vehicle prototype publicly for the first time. All of this is phase one of the ramp expansion plan. Phase two, starting next year, is the next step. This will include a new logistics hub on the site, the reconditioning of building B, the lay-in of the automated assembly line we've been designing with Monroe and team, as well as an extensive tool up of key parts the chassis and body that we believe will allow us to achieve maximum unit throughput on this site in 2025 and launch the robo valet mass market consumer end game we started teasing last year now the conventional wisdom in the electric car space is that the shift to clean transportation is constrained by raw materials the precious extractive highly refined metals and rare earths in the battery and ev drive train Let's unpack that. It became public earlier this year that GM's new electric Hummer clocks in at a whopping 9,063 pounds. That's enough material to build two Model Ys. If we hit our 1.X targets, it'll be enough to build eight fun utility vehicles. If we truly want to move to a sustainable transportation system, we do. Electrification of the drivetrain is only one part of the solution. Right-sizing the footprint is equally critical. And while an 8X improvement over GM's flagship is a good start, we believe we can push the envelope way further. In order to take the next order of magnitude leap in terms of efficiency, size, and use of materials on a three-wheeler while maintaining stability, it needs to lean. In early 2021, Arcimoto acquired Tilting Motorworks and its world-class tilting trike technology portfolio. At Ramp It Up earlier this year, we showed the true fruits of this collaboration for the very first time, Arcimoto's mean lean machine.