This EV Stock More Than Doubled After Key Order From Walmart. But Is It a Buy?

This EV Stock More Than Doubled After Key Order From Walmart. But Is It a Buy?

Posted On July 20, 2022 1:21 pm

Canoo Inc. (GOEV) is a mobility technology company engaged in designing, engineering, and developing electric vehicles (EVs) for the commercial and consumer markets. The company offers lifestyle delivery vehicles, lifestyle vehicles, multi-purpose delivery vehicles, and pickups.

GOEV’s stock has gained close to 70% since the news release that Walmart Inc. (WMT) signed a definitive agreement with the company on July 12 to buy 4,500 all-electric delivery vehicles starting with the Lifestyle Delivery Vehicle (LDV).

WMT also has the option to buy up to 10,000 vehicles from GOEV. WMT seeks to use the EVs to deliver WMT’s online orders, including InHome and Express Delivery.

GOEV’s Investor, Chairman, and CEO Tony Aquila said, “We are proud to have been selected by Walmart, one of the most sophisticated buyers in the world, to provide our high-tech, all-electric, American-made Lifestyle Delivery Vehicle to add to their impressive logistics capabilities.” “This is the winning algorithm to seriously compete in the last mile delivery race, globally,” he added.

While WMT’s agreement portrays a rosy growth picture, GOEV has failed to deliver a single commercial vehicle so far. In its SPAC presentation, the company projected that it could generate revenues of $329 million in 2022. But the company could not generate any revenue in the last reported quarter.

The stock has declined 48.2% in price year-to-date and 51.9% over the past year to close the last trading session at $4.

Here’s what could influence GOEV’s performance in the upcoming months:

Disappointing Financials


GOEV’s losses from operations widened 45% year-over-year to $140.78 million for the first quarter ended March 31, 2022. Its net loss widened 723.3% year-over-year to $125.36 million. In addition, its loss per share widened 671.4% year-over-year to $0.54. 

Also, its cash, cash equivalents, and restricted cash declined 81.5% year-over-year to $118.62 million at the end of the period. Furthermore, its adjusted EBITDA loss widened 135.8% year-over-year to $117.42 million.

Unfavorable Analyst Estimates

GOEV’s EPS for fiscal 2022 and 2023 is expected to remain…

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