The shifter on the right side of the handlebar controls the rear derailleur, which moves the chain from cog to cog, changing the way the bike rides.
In the illustration below, (1) is the motor, (2) is the freewheel, and (3) is the derailleur.
For the wrong indicator issue, please check the below video to adjust the shift bar and the derailleur according to the video and get it solved.
Adjust the 2 screws I circled in the below picture could adjust the gear shift alignment correctly. When you do that, also move the pedal to run the wheel to align them.
1) Please adjust the screw which circled in the below picture
It tightens or loosens sometimes would affect the derailleur.
2) Please check if the gearing mechanism was bent during shipping
If the crash bar tubing that surrounds the gears was pushed in, you should pry it out to where it lined up with the chain. You may need a few bending maneuvers.
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