Today has been a rather mixed day in the markets. A range of risk assets have seen volatile moves, though not all in the same direction. For investors in early stage electric vehicle (EV) company Canoo (NASDAQ:GOEV) and GOEV stock, today has turned out to be a great day.
Currently, GOEV stock is up more than 16% at the time of writing. A number of catalysts have spurred this stock higher throughout the day.
Most investors know that sentiment in the EV sector is red-hot right now. Companies that have not yet reported deliveries, or are on track to deliver vehicles in short order, have been boosted by the recent Rivian (NASDAQ:RIVN) initial public offering (IPO) and subsequent valuation. For growth investors, now appears to be a great time to jump onto more speculative hypergrowth stocks in the EV sector. That is, should this momentum continue.
Here are three reasons why bulls seem to think now is the time to buy GOEV stock.
GOEV Stock Soars on 3 Key Catalysts
First up for Canoo investors today is the company’s earnings report. Yesterday, Canoo reported its earnings after market close. The actual numbers reported are relatively meaningless for investors, given Canoo’s status as a pre-revenue company. However, Canoo did report targets of “$100 million in vehicle orders with the states and universities” that the company is targeting for new facilities. Investors seem to like these aggressive targets today.
Speaking of these new facilities, Canoo announced some details on this front as well. Tulsa, Oklahoma was one of the locations announced as an R&D (research and development) and software development center for the company. Additionally, the company announced that its headquarters, EV industrialization facility and another R&D center would be located in northwest Arkansas. These moves appear to be strategic ones, and investors seem to like the geographic diversification underpinning this deal.
Finally, the big piece of news that appears to be driving the most excitement around GOEV stock is the company’s update on its manufacturing timeline. Essentially, Canoo has moved the goalposts forward. The company expects to begin production before Q4 next year. This could mean revenue generation will happen sooner than expected, a boon for the company. Updated capital expenditure forecasts were also provided.
In a nutshell, investors seem to like with they see with Canoo today.
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.
