Shares in fledgling electric vehicle (EV) startup Canoo Inc. (NASDAQ: GOEV) rose by over 23% yesterday following a wholly positive third-quarter earnings report on Monday evening after the bell. The company reported an earnings beat of -$0.35 against an expected -$0.44 per share.
More importantly, however, Canoo gave an update on its current manufacturing timeline. Investors were overjoyed to hear that the company has moved forecasted production forward to before Q4 of 2022. As recently as June, the firm had anticipated production wouldn’t begin until at least 2023, so this announcement has seen sentiment for the company elevate immensely.
What does mean for investors?
Everything seems to be moving positively for Canoo at the moment. Production is ahead of schedule, it announced plans for a new research and development facility in Arkansas, and the Q3 losses reported can all more or less be explained away through administrative costs and continuing product development.
With all this good news, it’s no surprise that the company’s stock is continuing to soar. Investors should exercise some critical thinking though when analyzing Canoo as a potential investment. The EV market is arguably the hottest in the world right now, particularly after the glowing success of Rivian’s IPO last week. Almost all EV stocks have seen bullish sentiments lately with investors seemingly clamoring to get a piece of the action.
So should I invest in Canoo stock?
Canoo boasts some stellar underlying factors and has enormous growth potential looking forward. It’s certainly a company we’ll be keeping an eye on, particularly if they continue to outperform all expectations. Caution is advised, however, as investors will need to determine if they truly value the company itself or are simply getting caught up in the flurry of an EV market that can’t seem to put a foot wrong (until it does).
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Financial Writer at MyWallSt
Pádraig’s favorite stock is Nike. Growing up as a sports fanatic, seeing Nike collaborate with athletes like Jordan, Lebron, and Ronaldo inspired him and cemented the brand in his mind. Now, despite having failed miserably in his attempts to earn a fabled Nike sponsorship, he still believes in the innovation and creativity behind Nike and is convinced they will only grow stronger as the world's leading sports brand.