Today is definitely a headline-making day for Canoo (NASDAQ:GOEV). Apparently, fleet leasing provider Zeeba just agreed to purchase at least 3,000 electric vehicles (EVs) from Canoo. On top of that, Zeeba also intends to add two types of Canoo EVs to its fleet portfolio. These certainly seem like positive developments, but today’s traders are still deciding what to do with GOEV stock.
Based in California, Canoo makes futuristic-looking EVs that are both sleek and powerful. The company produces electric pickup trucks, among other types of vehicles. It also received a large EV order from Walmart (NYSE:WMT) back in July.
Today’s news isn’t about the Walmart deal, however. It’s about Zeeba signing an agreement to buy 5,450 American-made Canoo EVs. This arrangement includes an initial “binding commitment” of 3,000 EVs through 2024. The press release also states that Zeeba will add two of Canoo’s EV lines –the Lifestyle Vehicles and Lifestyle Delivery Vehicles — to its long-term fleet leasing portfolio.
So, how is Wall Street responding to this fresh development?
GOEV Stock Goes Green and Then Red
GOEV stock popped in early trading today, but it has fallen slightly into the red since. Perhaps investors are still digesting the implications of the Zeeba-Canoo collab.
Bear in mind, major stock market indices have declined during the early hours of the trading session today. Otherwise, shares of GOEV stock might have stayed green.
Given enough time, traders could still re-rate shares of Canoo to the upside. After all, between the Walmart and Zeeba orders, it looks like more businesses are turning to the company to electrify their fleets.
At the very least, Canoo CEO Tony Aquila remains optimistic. “We have a large committed, growing order book, are finalizing our multi-year allocations for 2023 customer deliveries and will share our manufacturing plan with the broader market shortly,” Aquila teased.
GOEV stock traders can certainly look forward to that. For now, though, it will be interesting to see whether investors say “yay” or “nay” to shares of Canoo over the coming days.
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On the date of publication, David Moadel 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.
