Today, electric vehicle (EV) maker Canoo (NASDAQ:GOEV) announced that it was selected by the U.S. Army to supply an EV for analysis and demonstration. Plus, just a couple of days ago, Walmart (NYSE:WMT) agreed to purchase 4,500 all-electric delivery vehicles from Canoo. Perhaps it shouldn’t be surprising, then, that traders are bidding up the GOEV stock price today.
It truly has been a one-two punch of positive news items for Canoo during the past few days. First, Walmart signed a definitive vehicle delivery agreement with Canoo. This deliveries will start with Canoo’s Lifestyle Delivery Vehicle. The agreement includes an option for Walmart to purchase up to 10,000 units from Canoo. So, this could be quite lucrative for the EV manufacturer.
As if that weren’t enough, the U.S. Army just awarded Canoo a contract to help support its EV capabilities in various environments. This isn’t the first time a government entity has ordered high-tech products from Canoo. Previously, NASA selected Canoo’s multi-purpose platform for crew transportation vehicles.
What’s Happening With GOEV Stock?
Evidently, buy-side traders just couldn’t resist GOEV stock today. The stock was up 16% in the first hour of the trading session. This occurred even while the major stock market indices were in the red.
Still, Canoo’s shareholders still have some catching up to do. The shares traded at $8 at the start of 2022. Even as the stocks tests $4, there may be more room for upside movement.
At least for the time being, though, Chairman and CEO Tony Aquila has every reason to celebrate the company’s recent achievements. Being selected by the U.S. Army, according to Aquila, is “another opportunity to prove our proprietary technology — which is customizable and adaptable for multiple use cases and special environments.”
Thus, Canoo has been selected and now has to deliver the goods. The buyers are in the driver’s seat for now, though, so stay tuned for further developments.
On the date of publication, David Moadel 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.