Canoo

[Bunty]

Buy the dip!

(this comment is satirical and does not constitute actual financial advice)

Well, why don't buy the stock if Canoo's debt is lower than the total price of all its stock?

[Rover]

They are going to perform up to a 30:1 stock buyback to correct the share price and stay listed. This year is a massive make or break year for them. if production starts to ramp up they may be able to thread the needle. It genuinely just comes down to are they going to make enough cars this year or not.

Stock buyback?

[mugofbeer]

Do you mean reverse split?

[jn1780]

Walmart will keep them alive. Vehicles all over NW Arkansas with Walmart logos attached.

That should be 'baked in' already though.

[jn1780]

https://www.nwaonline.com/news/2024/...ll-advise-ceo/

I wouldn't think the NASA contract wouldn't be that large. NASA probably just wanted a futuristic EV crew transport vehicle that wasn't Tesla.

[Soonerinfiniti]

https://electrek.co/2024/02/29/canoo...otted-testing/

[citywokchinesefood]

Do you mean reverse split?

Yes, I have no idea why I said buyback.

[SoonerDave]

Rumblings are the reverse split may happen when the stock finally drops to $0.05. I still can't believe there are stock pundits out there pushing a "predicted" value over $4 in a year. Makes zero sense short of some sort of magical government intervention.

[citywokchinesefood]

Rumblings are the reverse split may happen when the stock finally drops to $0.05. I still can't believe there are stock pundits out there pushing a "predicted" value over $4 in a year. Makes zero sense short of some sort of magical government intervention.

They have to do the reverse split before the end of March. The split was approved by shareholders to be from 2:1 all the way up to 30:1. The lack of visible production out of the Oklahoma plant makes me think the stock is more likely to go bellow a dollar again rather than grow from $1.50-$3 to $4.

[mugofbeer]

They have to do the reverse split before the end of March. The split was approved by shareholders to be from 2:1 all the way up to 30:1. The lack of visible production out of the Oklahoma plant makes me think the stock is more likely to go bellow a dollar again rather than grow from $1.50-$3 to $4.

Not to nitpick but reverse splits are listed as 1:2 up to 1:30.

[Paule4ou]

1:23 stock split announced this morning; effective March 8, 2024

https://investors.canoo.com/news-pre...plit-effective

[mugofbeer]

Nevermind

[FighttheGoodFight]

I don't see Canoo making it more than a few years. Their portfolio looks pretty awful and the reverse split just to stay on the exchange is usually not a great sign. The do pay their directors a ton of money though.

[Rover]

There is an axiom in marketing that selling new products to existing customers is infinitely easier than selling new product to new markets/buyers. Without huge subsidies or incredibly deep investor pockets, it is hard for someone like canoo to go against existing auto makers with established suppliers, scale of purchasing, prior design knowledge, existing facilities and production equipment, existing sales systems, large customer bases, huge advertising budgets, existing reputation, etc. it is a HIGH capital industry in which it is hard to just dip a toe into. Odds are really against them without having proprietary breakthrough technology. None of their designs can’t be done by others with better economics and more advanced designs. If they survive it would be an incredible David vs Goliath story without divine intervention.

[shavethewhales]

As typical with reverse splits, it's getting hit hard right now. Expect at least a few days of 5-15% losses. It will probably dive under $1 again before too long. They are probably selling more shares themselves at this time. That's what usually happens in the penny stock "death spiral" cycle: reverse split, dilute, then reverse split again so you can keep diluting. Eventually you run out of rubes willing to buy shares so it drops harder and faster each time until creditors/regulators realize the stock is truly worthless.

They will probably pump out some good PR soon however. They are supposedly staffed up at the OKC plant and ready to produce. They need to start pumping out at least a few cars. I expect that to be the next big PR. Even just a few cars per week rolling off the assembly line would be something.

[jccouger]

canoo is gonna need a life raft

[Just_Curious]

They needed a life raft 12 months ago. The reverse split was supposed to buy them time. Ideally, keep them afloat until April 1st. At this rate they might not make it to this Friday. They will make a great case study of what not to do though.

[Pete]

It's very tough for them because you have all the big manufacturers that not only have a lot of EV products on the market, but they all have a bunch more pretty far along in the pipeline.

Then you have the new companies like Tesla, Rivian, and Lucid who are just way farther along and when it comes to building vehicles, that matters a lot. Heck, even after all this time Tesla is still having serious quality control issues. Vehicle manufacturing is *hard*.

Even in the delivery van space, you have industry leaders like Ford and Mercedes with great EV products already on the road and now red hot Hyundai/Kia is getting into that same market. All are very entrenched and their EV products are very highly regarded.

You also have all these Chinese companies up and running with tons of cars already on the road.

On top of all that, EV sales are growing at a slower rate than anticipated.

I'm having a very hard time seeing where Canoo is going to get market share.

[shavethewhales]

^Very true Pete. However, they seem to already have a bunch of orders in the pipeline. Their concept, surprisingly, seems to have a solid market. Like you said though, vehicle manufacturing is hard, and Canoo is running out of time to get products built and out the door. The stock had a 25% drop today...

Once the Chinese EV's start really flooding the market, I expect to see congress act to tariff the hell out of them or even block them simply because there's no way US companies could compete. I've actually considered importing some of the Chinese E-bikes and scooters to sell locally. Of course, there are safety factors to consider...

Rivian's R3 looks really good, but like most others it is expected to be too darn expensive to really capture the market. I'm not spending $50 grand on my next vehicle. Not even 40 and maybe not even 30.

[Rover]

^Very true Pete. However, they seem to already have a bunch of orders in the pipeline. Their concept, surprisingly, seems to have a solid market. Like you said though, vehicle manufacturing is hard, and Canoo is running out of time to get products built and out the door. The stock had a 25% drop today...

Once the Chinese EV's start really flooding the market, I expect to see congress act to tariff the hell out of them or even block them simply because there's no way US companies could compete. I've actually considered importing some of the Chinese E-bikes and scooters to sell locally. Of course, there are safety factors to consider...

Rivian's R3 looks really good, but like most others it is expected to be too darn expensive to really capture the market. I'm not spending $50 grand on my next vehicle. Not even 40 and maybe not even 30.

I don't think they have a lot of hard orders. Anyone know what their order level and delivery schedule is compared to the projections shown to investors for this time period? It isn't just that they may have orders, but can they deliver on time and without problems according to the business plans and forecasts to shareholders.

[OKC B-Man]

I saw one of their trucks on Hwy 114 in Justin, Texas a few weeks ago. I guess they have an office down there. Didn't catch a great look at it as I was going about 60 and it was slowing down to turn left. I liked what i saw though. Definitely different. Odds aren't in their favor it seems, but i hope they succeed.

[CaptDave]

Their vehicle seems to be a perfect fit for USPS in urban / suburban areas. I thought they had a deal to provide new mail carrier vehicles or am I recalling a discussion about how much sense it makes??

Their van also makes sense for municipalities and state agencies for local transportation of people and material.

[Pete]

Their vehicle seems to be a perfect fit for USPS in urban / suburban areas. I thought they had a deal to provide new mail carrier vehicles or am I recalling a discussion about how much sense it makes??

Their van also makes sense for municipalities and state agencies for local transportation of people and material.

But tried-and-true manufacturers like Mercedes, Ford and now Kia/Hyundai already have great EV vans rolling off the assembly line. Companies with decades of experience building and servicing huge fleets of delivery vans.

If you were running a business, why on earth would you take a gigantic flyer on a company like Canoo?

That's the reality they are facing.

[CaptDave]

^^ True. Maybe a "Buy American" requirement for USPS would help to an extent. I have noticed USPS replaces the MB star in the grille of their vehicles. Then the specter of a giant like Ford comes into play. Canoo definitely has a steep uphill climb ahead IF it survives.

[Pete]

The USPS just bought nearly 10,000 EV's from Ford.

The new Mercedes eSprinter is made in Charleston, SC.