Canoo Inc. GOEV shares are trading lower Thursday after a recent run-up. Here’s a look at what’s going on.
The Recent Developments:
Last week, Canoo made headlines by announcing the U.S. Postal Service’s purchase and scheduled delivery of six right-hand drive versions of Canoo’s LDV 190 in the first quarter of 2024. The deal is part of the Postal Service’s $40 billion investment strategy aimed at modernizing its processing, transportation, and delivery networks. This sent ripples of excitement through the investor community.
Following that news, on Wednesday, Canoo revealed the successful addition of electric vehicles to Zeeba’s fleet. This move aligns with an existing agreement that granted Zeeba a total of 5,450 EVs.
In response to these developments, Canoo’s CEO, Tony Aquila, expressed optimism, stating, “Our partnership with Zeeba signifies a major step forward in the electrification of commercial fleets across the United States, where EVs are the ideal use case. With an impressive revenue growth, Zeeba has increased its number of clients by 10 times in the last two years and has a large backlog of clients waiting for Canoo vehicles. We are excited to work with a dynamic, skilled team that is expanding its national fleet.”
These announcements caused a surge in Canoo’s stock by more than 30% over the past week. However, the stock took a sharp downturn, declining by over 11% on Thursday, indicating that investors might be locking in profits.
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GOEV Price Action: According to Benzinga Pro, Canoo shares are down 11% at 18 cents at the time of publication.
Image: Joe from Pixabay
