Today, investors in upstart EV play Canoo (NASDAQ:GOEV) are seeing decent gains. At the time of writing, shares of GOEV stock are up more than 4% on a relatively green day in the EV space.
Indeed, this is a stock that has been under some rather intense selling pressure of late. Since hitting a high of nearly $25 during the SPAC boom of late-2020, GOEV stock has settled down to a significant discount to its SPAC IPO price. Today, investors can pick up shares of GOEV stock around $7.50 a share.
Now, from a fundamental basis, many investors may like the value this speculative growth play provides at these levels. Picking up a 25% discount to what investors put in during the initial SPAC offering last year sounds like a good deal.
However, today, there is some additional news driving this stock higher. Let’s dive into what the company announced.
GOEV Stock Surges on Preorder Announcement
Today, Canoo announced the company will be accepting preorders for its three key models. Investors can now preorder the company’s lifestyle vehicle, its MPDV and pickup truck with a deposit of only $100.
This move appears to be an attempt by Canoo’s management team to gauge consumer demand for its products. This move will also lay the foundation for forward guidance the company will be able to provide investors. More visibility with these pre-revenue plays is always a good thing. Accordingly, the market seems to be taking a liking to this announcement.
According to recent reports, Canoo’s lifestyle vehicle will be the first to hit the market next year. These vehicles have a targeted MSRP between $34,750 and $49,950. Other incentives are not factored into these prices. Accordingly, the company is hoping its affordability-focused value proposition will be enough to generate some impressive order numbers.
Canoo’s other two models are slated to come to market as early as 2023, though a production timeline isn’t concrete yet. That being said, anticipation around the potential demand for such models has speculators considering adding shares of GOEV stock before this EV play goes on a run.
Currently, Canoo represents a highly speculative play in the EV space. That said, it appears investors are itching for more visibility, which should come soon. On balance, Canoo’s risk-reward appears to be much more enticing today on this news.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.