Canoo Has So Much More Potential Than the Market Gives It

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If you listened to my bullish call from March 3 on California-based electric vehicle manufacturer Canoo (NASDAQ:GOEV) stock, you’re probably in the red on your GOEV stock investment.

Source: Canoo media

If you’ll forgive me for that, then today I hope to motivate you to stay in the trade.

It just doesn’t seem right for the shares to trade below $10. After all, that’s the pre-deal-announcement price of the stock, before special purpose acquisition company (SPAC) Hennessy Capital announced its intent to merge with Canoo in August of 2020.

By pushing GOEV stock below $10, the market is effectively giving the thumbs-down to the merger and to Canoo.

That’s a pretty harsh assessment. Perhaps a preview of a new, wicked-looking purpose-built electric vehicle will remind the Canoo community of why they fell in love with the company in the first place.

A Closer Look at GOEV Stock

GOEV stock will open today at a little more than $9. How did it get there? Let’s just say it’s been a long, strange trip.

Throughout much of 2020, the stock was clinging to the typical $10 SPAC price. As you probably know, though, electric vehicle SPAC stocks have been known to explode to the upside when deals are announced.

That’s what happened with GOEV stock as the share price rocketed upwards in December, even touching a 52-week high of $24.90 on Dec. 10.

After topping out, the stock wiggled and wobbled, but unfortunately, the general trend was lower. March was a particularly challenging month for the investors, and April has mostly yielded sideways price action.

There may be continued volatility ahead, so please don’t pour your entire portfolio into GOEV stock. If you still believe in Canoo’s vision, however, a small position could pay off in the long run.

A Flair for the Dramatic

I’ll admit, Canoo appeals to me because the company knows how to create a sense of drama.

Take the company’s press release, which reveals Canoo’s fourth-quarter and full-year 2020 fiscal results. Without actually putting any vehicles on the roadways, the company somehow managed to convince me that it’s making excellent progress.

Canoo Executive Chairman Tony Aquila certainly knows how to spin a pre-revenue company as the greatest thing since sliced bread.

“We are building vehicles that are not burdened by legacy constraints and developing technologies and functional designs to build EVs for everyone,” he said. “We believe we are the first OEM that is looking at the full lifecycle of the vehicle and building in multiple revenue touchpoints.”

This isn’t to suggest that the company’s press release was entirely devoid of specifics. The consumers can expect the starting price for Canoo’s all-electric multi-purpose delivery vehicle to be set at around $33,000.

Moreover, there’s an all-electric pickup truck with a target delivery as early as 2023 – and that’s where the rubber really meets the road.

Check the Specs

Chief hype man Aquila is passionate about building vehicles that can change people’s lives – I know this because he said so.

Still, I don’t doubt his veracity as Aquila is prepping the public for a pickup truck that’s “as strong as the toughest trucks out there and is designed to be exponentially more productive.”

He’s referring to Canoo’s recently unveiled purpose-built pickup truck. It doesn’t seem to have a specific model name yet, but it’s visually unforgettable.

I mean, it looks kind of like a spaceship, but then you could probably say the same thing about any of Canoo’s vehicles.

Pre-orders for the truck will apparently be available sometime during the current quarter. In the meantime, here are some specs for any interested parties:

  • Battery range of 200 miles
  • 1,800 pounds of vehicle payload capacity
  • Up to 600 horsepower and 550 lb-ft of torque with dual motors
  • Overall length of 184 inches (213 inches with bed extension)
  • Dual or rear motor configurations

The Bottom Line on GOEV Stock

For fans of the company, the beatdown of GOEV stock might be baffling.

I’m scratching my head, as well. Yet, I’m motivated by Canoo’s drive to create world-class vehicles that are fairly easy to afford, and quite impossible to forget.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article.

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