Canoo (NASDAQ:GOEV) stock is falling hard on Tuesday after the electric vehicle (EV) company’s earnings report and conference call for the fourth quarter of 2020.
Let’s take a look at what has GOEV investors riled up today.
- The biggest news comes from the company’s recent call with investors.
- In that call, Canoo chairman Tony Aquila revealed some changes in how the company plans to move forward with business.
- Aquila says that Canoo is now focusing on creating EVs for fleets and small businesses.
- It’s been working toward this with three vehicle efforts.
- This has it developing an electric delivery truck, pickup truck, and van.
- This is a stark change compared to the previous plans that would have it developing EVs for customers.
- The goal was to have thee available for use via a subscription service.
- Canoo was also previously working with other companies to help them develop their own EVs.
- However, it looks like those plans are no longer in place.
- That includes an agreement with Hyundai (OTCMKTS:HYMTF), as well as other auto companies.
- Aquila says that these deals were announced by previous leaders at the company too soon.
- He also said that previous management was more aggressive than him.
- Instead, he wants to be more careful with the company’s development plans.
- To go along with this news, the company’s Q4 earnings include no revenue as research and development costs continue to rise higher.
- However, one positive is losses per share narrowing to 8 cents from 57 cents in Q4 2019.
- That also beat out Wall Street’s losses per share estimate of 14 cents for the quarter.
- Today’s news has GOEV stock experiencing heavy trading.
- That’s resulted in more than 21 million shares changing hands.
- For some perspective, the stock’s daily average trading volume is about 5.7 million shares.
GOEV stock was down 19.6% as of Tuesday afternoon.
Canoo is among other EV companies making headlines recently.
Quite a few other companies in the EV space are seeing strong movement for their shares. That includes the likes of Churchill Capital IV (NYSE:CCIV), Nio (NYSE:NIO), Xpeng (NYSE:XPEV), and others. Investors can learn more below.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.