Oregon-based electric vehicle (EV) manufacturer Arcimoto (NASDAQ:FUV) certainly isn’t a darling of the market now. Yet, Arcimoto’s interim CEO is confident that the company can deliver strong results this year. Additionally, a fresh capital raise should convince FUV stock traders that Arcimoto is on a path to prosperity in 2023.

First things first. Don’t invest in Arcimoto unless you can tolerate some risk. The company produces small, three-wheeled EVs that are “purpose-built for daily driving, local delivery, and emergency response.” Arcimoto’s vehicles are unusual-looking, and they may or may not become popular with the public.

If you’re prepared to accept the risk, however, then feel free to conduct your due diligence on Arcimoto. A small share position could, if everything goes according to plan, potentially double in value before the year is over.

What’s Happening With FUV Stock?

Not long ago, Arcimoto enacted a 1-for-20 reverse stock split. Presumably, this was done to maintain compliance with the listing rules of the Nasdaq exchange. Traders should note that, in some instances, the Nasdaq exchange may delist stocks that trade below $1 for too long.

FUV stock is definitely above $1 now, so there’s no imminent delisting threat. Arcimoto shares recently traded above $2 and have been much higher than that in the past. So, a rally to $5 is possible if Arcimoto can execute its growth plans.

This will certainly be easier after Arcimoto’s recent capital raise. Specifically, the company sold 4 million of its common stock shares in a public offering, plus warrants to purchase another 4 million common stock shares. Consequently, Arcimoto is able to generate roughly $12 million in gross proceeds, minus agent fees and other offering expenses.

Arcimoto’s Chief Executive Sees a Path to Profitability

Arcimoto isn’t currently a profitable business. However, other EV manufacturers started out as unprofitable companies. Statements from Arcimoto interim CEO Jesse Fittipaldi seem to suggest that profitability, while not guaranteed, is at least possible.

During 2022’s fourth quarter, Arcimoto achieved a quarterly vehicle delivery record for the company. Impressively, Arcimoto delivered 89 customer vehicles, up 20% sequentially.

This EV delivery growth prompted Fittipaldi to provide some encouraging statements. He assured:

“2022 gives confidence to the Team that with our learned sales KPIs [key performance indicators], we can better understand how to appropriately scale marketing and production efforts to achieve profitability.”

It would be a notable milestone if Arcimoto does, in fact, become profitable this year. Moreover, Fittipaldi expects that Arcimoto’s team will “increase our efforts to build the sales backlog and cost down our products knowing the plan is capital efficient and success is plausible.”

FUV Stock Can Hit $5 in 2023

While success appears to be “plausible,” it’s certainly not guaranteed. Therefore, any share position in FUV stock should be small.

That said, it’s fine to hold shares of Arcimoto with a $5 target for 2023. Arcimoto’s capital raise should help the automaker fund its operations for a while. Plus, the company’s EV delivery growth and Fittipaldi’s confidence indicate that Arcimoto is on track to provide outstanding value to shareholders.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.