Revving Up Production

Canoo Inc GOEV shares are trading higher. The company on Monday reported the purchase of new manufacturing assets.

What’s Happening: Canoo announced the purchase of manufacturing assets “at dramatically reduced prices” to scale production at its Oklahoma City facility. The assets, including robotics and controls processing equipment for building vehicle cabins, were procured at discounted prices of over 80% of estimated value.

“While many companies invested in capital equipment prematurely, we continue to phase our investment with our growth,” said Ramesh Murthy, Canoo’s chief accounting officer.

“These opportunities to acquire assets at significantly discounted prices have allowed us to further reduce our 2023 capital expenditures and also to improve our guidance by millions of dollars.”

The newly purchased assets will be used to drive Canoo’s manufacturing strategy, with a focus on scaling production for additional customer deliveries in 2024.

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Stock Performance: Canoo shares were up 14.7% at $0.2731 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Canoo.