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Arrival to Be Listed On NASDAQ Stock Exchange

Ben Parker

The Arrival Bus, one of two of Arrival's first product offerings, this electric bus was built with modularity in mind. It also has many digital features that allow for riders to see accurate bus data, request rides, and stops.

Credit Arrival

Article Highlights
  • The English automotive company Arrival is planning on being listed on NASDAQ stock exchange first quarter of 2021
  • Arrival makes commercial electric vehicles using microfactories that can be set up around the world
  • Arrival components are modular and can be used to build each of their vehicles
  • This is one of many electric vehicle makers that have gone public through a merger in recent years.

It’s the arrival of Arrival on the United States NASDAQ stock exchange. Earlier this year Arrival was a company that I mentioned on a list of Electric Vehicle Companies to Follow In 2020.  The English company has been working on creating commercial electric vehicles for shipping, and transportation. Now through a merger with CIIG they’re planning to list their shares on the NASDAQ stock exchange in the first quarter of 2021. 

Sometime in the first quarter of 2021 Arrival Group will be listed on the NASDAQ stock exchange under the ticker symbol ARVL. 


It’s expected that this IPO will generate approximately 660 million USD giving the company a 5.4 billion dollar valuation. For reference Ford Motor Company is currently worth about $27 million USD. Existing shareholders have already shown support in the deal among which are UPS and Hyundai-Kia. CIIG Merger Corporation is executing this merger and they’ll own 12 percent of Arrival, leaving 88 percent to existing and future shareholders. 


Credit Arrival

The Arrival Van can be made taller, longer, or with more range.

Credit Arrival

Arrival Production Announcements


The announcement of this merger comes with another announcement from Arrival. They’ve announced production of their first vehicles starting fourth quarter 2021. The first production batch will be fulfilling the large order from UPS and will be built in Bicester. They also announced a batch of electric-buses to be produced in York County, South Carolina in one of their first micro-factories.


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An Arrival Microfactory. A whole vehicle can be made right in this "smart production cell"

Credit Arrival

Arrival Production Innovation


These “micro-factories” are one of many of the appeals to Arrival’s business structure. Much of the company's work and effort has been put into engineering a way to produce electric vehicles with the least amount of overhead, investment or waste. 


“The company’s micro-factory concept is made possible by its construction method. The body is built so that welding work with expensive production robots becomes obsolete. A painting line is also not required since they produce the panels of the outer skin from a special combination of a composite material with a low-cost thermoplastic – similar to an e.Go Life vehicle, the plastic itself is coloured, not the body. The company, which was founded in 2015, aims to create scores of micro-factories by 2026.”

Via electrive.com


These microfactories use what they’re calling “smart production cells” which are essentially a handful of robots that can do a myriad of tasks and build a car in one spot. These are modular and take up a fraction of the space of a typical assembly line. Because these smart production cells take up less space, they can be put in existing warehouses anywhere in the world and can build the vehicles locally to match the local need.


What Arrival plans to do is, build microfactories in 6 months wherever their customer’s needs are. Each factory has the capacity to produce any product from Arrival’s lineup and handle varying amounts of production.  


This is a stark contrast to many other electric vehicle manufacturers like Tesla Motors building their Gigafactory, and Lucid Motors building their large Arizona factory.

An Arrival modular battery pack used in all of their vehicles as well as in Charge cars electric Mustang.

Credit Arrival

Arrival Product Innovation

Aside from producing these vehicles, Arrival claims to have put lots of effort into building a scalable, modular platform for their vehicles so they built components that will work across all of their vehicle line-up. 


Arrival’s components have been used to power other electric vehicles outside of their own product lineup, including these immaculate 1967 Mustang conversions by Charge Cars. Their components are also used in Roborace, the world’s first autonomous racing series. 


The two products that Arrival will be initially offering are the Arrival Bus, and the Arrival Van. 


The Arrival Bus is a beautifully designed modular electric bus that can be built to specific size for whatever the market need may be. It’s also built to be integrated to a mobile app system for riders that allow riders to see bus schedules, request rides, or stops. 


The Arrival Van is similar to the bus, it can be built to accommodate for greater height, length, or even range. The van was built to ease the ever-growing amount of emissions due to higher consumer demand for same day deliveries, and an increasing amount of e-commerce.

Conclusions


It’s still to be seen what Arrival can deliver. It’s unfortunate that the world of electric vehicles has been riddled with snake oil, smoke and mirrors. Many other electric vehicle companies have gone this same route of going public before having a product through a merger with a publicly listed company. Some of these have led to dramatic overpromising and under delivering like the ongoing Nikola Motors debacle. This has left many to question the reality of new automakers entering a tough competitive landscape. 


With that said, Arrival has been keeping their metaphorical head down for sometime and working on a feasible, realistic, and needed product. They also are taking a different approach to production that will be appealing to many commercial customers. 


My personal thought is that Arrival will be a big player in the commercial vehicle space in the coming years as many manufacturers are not focusing on electric vehicles for this size or category of vehicle. Rivian has taken a similar approach and has succeeded in partnering directly with Amazon to create an all-electric delivery van.  I think commercial electric vehicles will be a first-movers game, and not that many people are moving so as Arrival continues to innovate, they’ll continue to succeed.