We also have some concerns regarding Canoo’s strategic direction, as it appears to have walked back its plans to offer its vehicles via a subscription service, license its technology to third parties, and leveraging an asset-light manufacturing strategy, partnering with the likes of Hyundai. Even this might be optimistic, given that young EV players have a track record of missing production expectations. Canoo generates no meaningful revenue yet and is only likely to start its vehicle production in 2022, with plans to ramp up sales to 15,000 units in 2023. While Canoo stock remains down by about 45% from its January highs, we think the company still remains a relatively speculative bet. So is the stock worth a look for longer-term investors? Unlike other Reddit forum favorites such as BlackBerry, AMC, and GameStop GME – which are “old-economy” companies, that many would argue are well past their prime, Canoo is a futuristic bet. Although Canoo has attracted attention due to its single-digit stock price (as of last week) and short interest levels approaching 30%, it is a bit different from other so-called “meme” stocks. For example, Canoo was up by almost 16% in Tuesday’s trading alone, although it fell a bit on Wednesday. The recent gains are driven partly by increasing interest from Reddit traders who have been bidding up prices of small and mid-cap stocks with high levels of short interest. (Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images) SOPA Images/LightRocket via Getty ImagesĮlectric vehicle start-up Canoo (NASDAQ: GOEV) has seen its stock rally by almost 35% over the last month. BRAZIL - 1: In this photo illustration the Canoo Inc logo seen displayed on a smartphone.
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