In July, it was announced that Walmart (NYSE:WMT) will purchase 4,500 of Canoo’s Lifestyle Delivery Vehicles (LDVs). It will be the first customer to receive these vehicles, which are expected to hit the roads next year. After the initial 4,500 LDV order, the retailer has the option to purchase an additional 5,500. The LDV is fully electric and will help Walmart achieve its plan of zero-emissions by 2040. It is also built on Canoo’s proprietary multi-purpose platform (MPP).
On the other hand, the electric vehicle (EV) company is quickly burning through its cash pile. In the first half of the year, Canoo reported a net loss of $290 million. Furthermore, it has access to $250 million of capital, but only holds $33.8 million of cash and cash equivalents.
However, Aquila remains confident, as evident by his GOEV stock purchase.
GOEV Stock: CEO Tony Aquila Purchases Shares
On August 12, Aquila purchased 200,000 shares at an average price of $3.99 per share. After the purchase, he directly owns 2.5 million shares of the company. Furthermore, he indirectly owns another 51.2 million shares through several limited liability companies (LLCs) of which he is affiliated with.
The last time Aquila purchased shares of GOEV was last November. On Nov. 22, he indirectly purchased 35.3 million shares through AFV 7, of which he is a managing member. The shares were purchased at an average price of $6.53.
Meanwhile, Aquila admitted that Walmart may be single handedly keeping the company afloat:
“We expect that a substantial portion of our initial revenue will be from one customer. If we are unable to maintain this relationship, or if Walmart purchases significantly fewer vehicles than we currently anticipate or none at all, our business, prospects, financial condition, results of operations, and cash flows could be materially and adversely affected.”
Canoo ended Q2 with an order pipeline of more than $1 billion in sales, which is largely attributed to the Walmart order. The company also has a deal to supply the U.S. Army with its MPP and an undisclosed EV for “analysis and demonstration.”
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On the date of publication, Eddie Pan 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.