Arcimoto CEO Mark Frohnmayer and I chatted about the new Mean Lean Machine Cybertrike. This is Part 2 and the final part of my interview with Mark. If you haven’t read Part 1, you can go back and read that here.
Starting from where we left off, Mark was speaking about Arcimoto’s acquisition of Tilting Motor Works and shared how the team incorporated the technology into the MLM Cybertrike.
The MLM acronym itself
Mark and I joked about the acronym which also stands for multi-level marketing.
“People are like, ‘did you know that Mean Lean Machine is MLM?’ And I’m like, ‘of course I know that,’ and they’re like ‘well don’t you know that MLMs are bad?’ and I’m like, ‘Not this one! It’s actually the ultimate multi-level marketing scheme. Every one of our customers will sell them.”
Here, Mark is referring to word-of-mouth marketing which is something that has served Tesla well. Owners will share their experiences with their friends who will be inspired to buy one.
Making Things That Sell Themselves
The topic of MLMs opened up another conversation about selling and Mark pointed out that the best thing to do is make things that sell themselves.
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“For a long time, I actually loathed the selling process but the best thing to do is to make things that sell themselves.”
I agreed with Mark on this point. Make something that you love and people will see it and be inspired.
“Absolutely. And if all I do is just tell people honestly my experience with and how I feel about the Fun Utility Vehicle, the Roadster, and the Cybertrike, I kinda just can’t help myself.”
“I’m just like, ‘it’s so awesome! You must try it! And then you’ll probably want one.’”
The Arcimoto MLM vehicle Tiers
Mark said that there are three tiers or versions of the Mean Lean Machine.
“The Cybertrike is the only one that we have shown what the actual final product is going to look like. But we talked a little bit about the Sidewinder which is going to be the base model.”
“There’s an entry-level model and we’ve not announced pricing yet for any of these but will be coming soon. Then there’s the Cybertrike and then the true Mean Lean Machine that is going to be on the high end. Both of those other ones are in the works and we are very excited to show those when they’re ready.”
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A point made at the Arcimoto Ramp It Up! Event
During the Ramp It Up! event that Arcimoto held in February, Mark made a very critical point about the weight of other EVs and the use of materials–especially since we are having supply chain constraints.
In the video, Mark shared an example. The General Motors electric Hummer weighs 9,036 pounds.
“This is a vehicle that when driven alone is more than 40 times the weight of its occupant. That is enough material to build two Model Ys. If we hit our targets, it’s enough material to build eight Fun Utility Vehicles.”
Mark further explained to me that the same material for that Hummer can produce approximately 100 Mean Lean Machines.
The real purpose of Arcimoto’s program.
Mark told me the real purpose of Arcimoto’s MLM program is to make an e-bike class vehicle that appeals to a much wider audience while using a fraction of the material cost of a full-sized car.
“When you think about the real purpose of this whole program, it’s to make an e-bike class vehicle that can appeal to a much wider audience. People who don’t want to fall off a bike, or don’t want to brake a chain, who want to carry a lot more stuff and want a more comfortable ride.
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“But provide that at a tiny fraction of the material cost of a full-sized car. And if we follow the news on the limiting factors of electric vehicles, a bit limiting factor is the availability of raw materials to produce vehicles.
“Given that that is the case, we believe that it makes all the sense in the world to really rethink how big the vehicles are that we are using to get around. And that really is the purpose of the Mean Lean Machine.”
“It’s to provide something so awesome in the true micro-mobility e-bike class that it really starts to move the market in ways that it’s still not moving fast enough right now.”
In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
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Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
SpaceX’s massive investment in AI will make it a big winner, Argus Research said after the company’s successful earnings call last week.
The firm also upgraded shares to a Buy from Hold and set a $160 price target.
SpaceX (NASDAQ: SPCX) is currently recovering from its heavy AI infrastructure investments, as it spent nearly $16 billion in Q2 alone. The company did this primarily by monetizing high-demand GPU compute capacity at a much faster pace than traditional data center economics would suggest.
Company CFO Bret Johnsen said that SpaceX would be able to pay back anything on new deployments within a year.
There are plenty of ways the company can do this:
Leasing excess compute capacity through contracts
SpaceX has already built Colossus and Colossus II, largely for its own model training. However, much of that capacity is already rented out to third parties. It already has major deals with Anthropic, Google, and Reflection AI. These partnerships are adding billions per month to SpaceX’s spreadsheet.
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High utilization driven by industry-wide scarcity
The demand for advanced AI training and inference capacity continues to exceed what is available for use. SpaceX can fill new racks quickly after they come online, so the capital deployed converts into revenue with minimal idle time.
Additionally, management and outside observers have described the new compute capital as behaving more like a cost-of-goods-sold than traditional multi-year capex, especially because of this rapid monetization pattern.
Capacity has already scaled from ~0.4 GW a year to 1.4 GW annually by the end of Q2. There are targets of more than 2 GW by year-end.
High incremental margins on the rental business once capacity is online
GPU cloud providers often operate at strong gross margins. SpaceX can monetize capacity that was already partially built or can be added efficiently. This means that incremental EBITDA margins on the rental revenue are usually high. This accelerates cash recovery relative to the gross capital outlay.
Parallel monetization of its own AI software and applications
Beyond pure infrastructure rental, SpaceX also generates revenue from Grok through subscriptions and usage, from X through ads, data, and other related services, enterprise APIs, and the planned integration of the Cursor coding tools acquisition.
These application layers ride on the same compute infrastructure and provide additional high-margin streams that could offset build-out costs. AI-segment revenue overall rose sharply to about $2.6 billion in Q2, according to Motley Fool. This was driven primarily by the infrastructure contracts, but the software side is also partially responsible.
Efficient, large-scale deployment and vertical integration advantages
SpaceX has emphasized the rapid construction of power and cooling infrastructure and favorable cost-per-megawatt economics relative to industry benchmarks in some disclosures.
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Combined with its ability to scale capacity aggressively and the fact that many contracts start generating revenue within months of capacity coming online, the effective payback compresses dramatically compared with more conventional multi-year data-center projects.
SpaceX’s dominant near-term recovery path will turn the AI clusters into a hyperscale-style compute rental business for other leading AI companies while still using a portion for internal models.
Tesla headlights have caused a recall of over 20,000 of the company’s two most popular vehicles, the Model 3 and Model Y, due to the low-beam bulb exceeding the maximum allowed intensity according to federal standards.
Tesla initiated the recall with the National Highway Traffic Safety Administration (NHTSA) this morning, stating that the low-beam output “exceeds the maximum allowed intensity in the outer upper-right and outer upper-left areas of the 10U and 90U zone, as prescribed in FMVSS No. 108.”
Tesla sourced the impacted headlights from Marelli Automotive Lighting, a Mexico-based company. The recall impacts 2020-2023 Model Y vehicles and 2017-2023 Model 3 vehicles. It is estimated that every VIN in this recall is impacted by the defect.
🚨 Tesla is recalling 20,349 2020-23 Model Y vehicles and 2017-23 Model 3 vehicles due to an excessively bright headlamp low beam.
Currently, there is no remedy plan in place, as it is still being developed. pic.twitter.com/y34cIO2U0B
— TESLARATI (@Teslarati) August 11, 2026
Typically, Tesla would remedy recalls of this nature through an Over-the-Air software update, which has been a major focus of criticism by the company and its supporters because the NHTSA still refers to it as a “recall,” even though it requires no action by the vehicle owner. The fix is shipped over the internet and downloaded to the car.
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However, there appears to be a potentially different solution for this problem. Tesla has not developed a remedy for this issue, so it could potentially be on the way. The big issue appears to be the fact that these recalled lamps are out of production, and this is an old body style for both vehicles. The headlights and front-end designs are completely different.
Tesla switched to another supplier when the affected headlight design was discontinued. It plans to begin notifying owners of their remedy options by September 15.
Tesla filed a petition protesting the recall to fix the vehicles’ headlight issue, but the NHTSA denied it. Now, Tesla will come up with a solution to fix it.
Tesla has one big financial question to answer for investors: Morgan Stanley
SpaceX AI investment gamble will make it a big winner, firm says
