Bad Start for Canoo EV Stock
Posted on 03/30/2021
California EV startup Canoo’s deal with Hyundai appears to be dead. Canoo chairman Tony Aquila shared the news during an investor call – its first call as a publicly-traded company. Interestingly, the CEO of Canoo was not on the investor call and Canoo’s CFO quit to take on another job. Canoo is now focusing on commercial vehicles, rather than cars for consumers. In its SPAC presentation projections, Canoo had predicted US$ 2.3 billion in 2025 sales, with US$ 1.2 billion coming from the engineering services that are now effectively done.
In February 2020, Canoo announced a deal with Hyundai in a dream for both Hyundai and Kia brands building vehicles on Canoo’s electric vehicle platform. Other EVs have touted promising deals with traditional automakers like GM and Nikola and Lordstown Motors.
Canoo completed a business combination with Hennessy Capital Acquisition Corp. IV on December 21, 2020, at which time Canoo became publicly listed on The Nasdaq Global Select Market. Canoo has cash and cash equivalents of US$ 702.4 million as of December 31, 2020.
Keywords: (Nasdaq: GOEV).