Canoo Inc. GOEV shares are trading lower Thursday after a recent run-up. Here’s a look at what’s going on.
The Buzz
What To Know:
Canoo recently made headlines by securing a deal with the U.S. Postal Service and joining forces with Zeeba, leading to a surge in its stock price.
The Big Moves
The recent announcement of the U.S. Postal Service’s order for right-hand drive versions of Canoo’s LDV 190 has undoubtedly fueled optimism. This huge success forms part of the U.S. Postal Service’s $40 billion investment program to modernize its processing, transportation, and delivery networks. Then, just a day ago, the company revealed the addition of electric vehicles to Zeeba’s fleet, as part of a 5,450-vehicle deal.
This promising news sent Canoo shares soaring, with a remarkable 30% gain over the past week. Nonetheless, it seems that profit-taking actions have kicked in today, perhaps explaining the stock’s more than 11% drop.
CEO Insight
In a statement addressing the Zeeba collaboration’s significance, Canoo’s CEO, Tony Aquila, emphasized the milestone achieved in electrifying commercial fleets across the United States. Aquila also highlighted Zeeba’s rapid revenue growth and burgeoning client base, hinting at a bright future for their partnership.
Market Response
GOEV Price Action: At the time of publication, Canoo shares are reportedly down 11%, trading at 18 cents, according to Benzinga Pro.
Image: Joe from Pixabay