Brought to the market by a special purpose acquisition company (SPAC), Canoo (NASDAQ:GOEV) is a California-based firm with a bold vision to disrupt the electric vehicle (EV) market. If you agree with the company’s vision, then you might consider taking a position in GOEV stock.
Investors knew about shell company Hennessy Capital’s intent to merge with Canoo since August of 2020. Since then, the stock price has gone on quite a roller coaster ride.
In late February and into early March, though, it appears that the stock is back near the bottom of its range. This could present a buying opportunity for folks who believe that Canoo has the potential to grow over the coming months and years.
Just understand that you wouldn’t be investing in a typical automaker. This name is truly unique. No doubt, there’s risk involved in the stock. But there’s also the possibility of strong, long-term returns.
A Closer Look at GOEV Stock
For many months, GOEV stock — formerly trading as HCAC stock — stayed near the $10 level. That’s what investors might expect from a SPAC stock in its early stages.
Soon enough, though, the bulls did manage to push the share price up to $13 in September of last year. However, the stock quickly fell right back to the $10 area.
But that hasn’t even been the most exciting part of GOEV’s story. Starting in December, the stock went on a ride that surely gave investors whiplash. The price rocketed up to $22, then declined to a low of $12 on Jan. 4. And as if that weren’t enough, it has since bounced back and forth between $15 and $19 a couple more times.
Today, GOEV stock has settled at around $13. For value-focused investors who don’t own the stock yet, this could present a chance to make a move.
Just be advised that this stock is hard to predict — and probably isn’t appropriate for large position sizes.
A CEO with Pedigree
Informed investors should always be sure to investigate a company’s leadership before taking a position. In Canoo’s case, the CEO knows a thing or two about innovation in the automotive market.
“In the mid-1990s, Mr. Kranz worked on product, research and development for the BMW Z3 […] In 1998 […] Kranz moved BMW into new terrain, leading development of the X5, BMW’s first SUV. Starting in 2002, Mr. Kranz then oversaw the revitalization of the iconic BMW MINI brand. For nearly a decade, Mr. Kranz led BMW’s electric vehicle division, ‘Project i,’ developing electric cars designed to sustainably address the mobility needs of consumers in large urban markets.”
So, as you can see, Canoo has a CEO with a wealth of experience as an automotive-market innovator. Importantly, Kranz has also made his mark in the EV niche. Clearly, then, he could do great things for GOEV stock.
Just Be Patient
All that said, Kranz’s work at BMW could pale in comparison to what he and Canoo are trying to accomplish. But the thing is, even the most forward-thinking EV sector investors will need to exercise some patience with Canoo.
I say that because Canoo’s multi-purpose delivery vehicle — the one that investors are probably the most excited about — won’t even have limited availability until 2022.
Moreover, the vehicle’s proposed larger-scale production and launch are planned for 2023. So, you can invest in GOEV stock and these delivery vehicles, but you won’t get to drive one for quite a while.
The good news is, though, that there’s a lot to like about this vehicle — assuming you have an open mind. Its features include:
- A proprietary platform, which is evidently the “flattest in the industry”
- A bi-directional onboard charger
- A 125V or 240V AC output power plug for charging work tools
- The “ability to place a laptop or other devices to the left of the driver’s seat”
- A low step-in height of 17 inches, “allowing easy and comfortable access”
- Enhanced cargo space with “nearly 30% more parcel volume than other leading delivery vehicles in comparable segments”
For all of this, Canoo plans to offer an affordable starting price of about $33,000. Pretty impressive, I must admit.
The Bottom Line
Canoo’s delivery van and other EVs won’t necessarily look “normal” or have the typical features of today’s cars. Plus, the price behavior of GOEV stock will be difficult to predict moving forward.
But if you’re okay with all of that, then feel free to flex your creativity as an investor. The uniqueness here is part of what makes this name attractive. So, consider taking a moderate-sized position in Canoo shares.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.