Following a promising quarterly earnings report and a mysterious production announcement, electric vehicle (EV) manufacturer Canoo (NASDAQ:GOEV) has people talking this week. GOEV stock is up close to 1% today as rumors swirl over Canoo’s possible secret partnerships.
Despite reporting net losses nearly quadrupling last quarter’s, Canoo enjoyed a sizable 24% jump in share price this week. The American EV startup is full of surprises that come together to paint a pretty — albeit speculative — picture for Canoo.
The two biggest announcements to come out of Canoo relate to the production location and timeline of its commercial EVs. Rather than the previously mentioned early 2023 deadline, Canoo announced it would begin production of EVs before Q3 2022. Additionally, a new production facility is on the way. This production facility is very interestingly located in Bentonville, Arkansas, home of retail mega-giant Walmart (NYSE:WMT). Naturally, investors are now daydreaming of a future filled with electric-powered Walmart delivery vans.
Will GOEV Stock Continue to Push Higher Ahead of Production?
Canoo currently has virtually no revenue, meaning all interest in the company is on speculation of future earnings. As such, its quadrupled losses this quarter don’t seem quite as bad. Actually, the numbers were slightly better than expected.
Add in rumors of a Walmart partnership and an ahead-of-schedule production timeline, and it’s no surprise Canoo has heads turning.
The question is, what else does Canoo have going for it, and how likely are the rumors to be true?
In the quarterly report, Canoo CEO Tony Aquila made some pointed remarks that hint at a secret partnership. While nothing was overtly specific, it certainly generated the chatter Aquila was looking for.
“This is an advanced manufacturing facility that will allow us to produce vehicles for unique use cases as well as accelerate our testing into gamma. We’re looking for ways to take down the traditional go-to-market way and this will produce vehicles that we will sell, as well.”
Aquila showed off the Gamma model vehicle, which is nearly ready for production, and then hinted that “some of them will be in the hands of potential partners.” When you consider the unorthodox production facility location, Aquila is either an ingenious marketer, or Canoo has a partnership in the works with Walmart. Either way, investors appear to be “buying the rumor” today, pushing Canoo up to a nine-month high of $10.80 to cap off the day.
On the date of publication, Shrey Dua 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.