What happened Shares of Arcimoto (NASDAQ: FUV), a maker of specialty electric three-wheeled vehicles, are trading down 15% as of 2 p.m. EST today. There could be several reasons for the drop, not the least of which is that shares have more than doubled in the last month. So what Today, Arcimoto announced it is offering 1 million shares of common stock directly to institutional investors. The company said it will use the $15.25 million in proceeds to continue supporting the growth it's experiencing. Share dilution from the offering may not be the only reason for today's drop. Shares are down along with those of competitor ElectraMeccanica Vehicles. Both companies have had sharp increases in share prices, and ElectraMeccanica was the target of a recent report by short-seller Citron Research. Arcimoto fun utility vehicle (FUV). Image source: Arcimoto. Arcimoto makes three-wheel electric vehicles for urban use, recreation, short-distance delivery, and emergency response. The vehicles have a top speed of 75 mph, and a range of 102 miles on a charge. Its fun utility vehicles (FUV) start at a cost of $17,900. Now what Today's capital raise is the second announced by the company this week. Arcimoto is trying to take advantage of the recent stock price increase. That is not inherently bad, especially for a company that is in the midst of ramping up production. But the additional shares offered dilute existing shareholders by about 7%. Arcimoto recently reported it lost $4.6 million in its third quarter on total revenue of under $700,000. The company's niche products may have a market. But until that is proven out, investors should be wary of chasing a stock that has run up very quickly. 10 stocks we like better than Arcimoto, Inc.When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Arcimoto, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Howard Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source