GOEV Stock Heats Up on Speculation Apple Could Buy Canoo

  • Canoo (NASDAQ:GOEV) is facing a funding crisis amid supply chain shortages and growth stock selloffs
  • Rumors are floating that Apple (NASDAQ:AAPL) may acquire the company to advance its own electric vehicle
  • Apple has reportedly had interest in producing a self-driving electric car for several years, even previously hiring Canoo’s former CEO
A magnifying lens over the Canoo company website GOEV stock
Source: Shutterstock

Electric vehicle startup Canoo (NASDAQ:GOEV) is receiving newfound attention lately on rumors Apple (NASDAQ:AAPL) may acquire the company, sending GOEV stock up as a result. Shares of GOEV are trending up less than 1%.

As the market continues its foray into the red, Canoo is looking like an unfortunate byproduct. Global supply chain slowdowns and semiconductor shortages have hit high-growth EV stocks. As such, the electric vehicle industry remains particularly vulnerable to selloffs as investors reallocate their investments into more conservative options.

California-based Canoo has shed more than 50% since the start of the year. In fact, just last week the company warned shareholders it may not have enough cash on hand to continue its operations.

Perhaps best known for its multifunction minivan, called the Lifestyle, the company was hoping to build between 3,000 and 6,000 units by year end. So far this year, it has only produced 39 vehicles.

Fortunately, should current rumors come to pass, help may be on the way. Analysts are speculating that tech giant Apple may be a potential acquirer for the EV maker, should Canoo leadership opt to sell the business.

GOEV Stock Climbs on Promising Apple Rumors

Apple has had an interest in electric cars for years now; the company even bought Drive.ai in 2019 to enhance its understanding of autonomous driving. This comes in addition to numerous reports stating the company has hired hordes of well-known auto industry experts from the likes of Ford (NYSE:F) and Tesla (NASDAQ:TSLA). Apple is apparently planning for the vehicle to be fully self-driving, with no steering wheel or pedals. Current estimates for the car are vague, with some estimating Apple is aiming for release sometime this decade.

Additionally, there already exists potential synergies between the two companies. Canoo’s former chief executive, Ulrich Kranz, is a top executive on Apple’s not-quite-official car project, alongside several other former Canoo engineers.

In fact, according to one report, the two companies had communicated in 2020 on a number of possible collaborations. With Apple recently ending the iPod after more than 20 years, Canoo could wind up being Apple’s foothold onto its next multi-decade endeavor.

On the date of publication, Shrey Dua did not hold (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

With degrees in economics and journalism, Shrey Dua leverages his ample experience in media and reporting to contribute well-informed articles covering everything from financial regulation and the electric vehicle industry to the housing market and monetary policy. Shrey’s articles have featured in the likes of Morning Brew, Real Clear Markets, the Downline Podcast, and more.

Article printed from InvestorPlace Media, https://investorplace.com/2022/05/goev-stock-heats-up-on-speculation-apple-could-buy-canoo/.

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