Why Canoo Stock Shot Up 80% Today
Shares of EV start-up Canoo (NASDAQ: GOEV) more than doubled Tuesday morning on news of a big new deal with retailing giant Walmart. As of 10:45 a.m. ET, Canoo stock was still 80% above Monday's closing price.
Canoo bills itself as a specialty electric-vehicle (EV) maker, with a van-like lifestyle vehicle, pickup truck, and multipurpose-delivery vehicle (MPDV). But after the company reported first-quarter earnings in early May, management issued a warning in the company's Securities and Exchange Commission filing. It stated, "Our management has performed an analysis of our ability to continue as a going concern and has identified substantial doubt about our ability to continue as a going concern."
Prior to today, Canoo stock was down 70% for the year, with investors seeming to abide by management's warning and give up on the company. But the deal announced with Walmart changed that this morning.
Source Fool.com
