Written by Cláudio Afonso | LinkedIn | X
After plunging 21.7% on Monday, shares of the EV startup Canoo dropped another 29% on Tuesday, closing at just $0.17 — a new record low for the Texas-based company founded in 2017.
Over the last four weeks, the share price has shrunk by 76% as shareholders still expect any investment of developments that could save the company from filing for bankruptcy in the coming weeks or months.
Trading volume surged on Tuesday, with 92.54 million shares exchanged—approximately 1,400% above the three-month average daily volume of 6.3 million shares. This marks the second-highest single-day trading volume for Canoo, surpassed only in March when 108.38 million shares changed hands. On that day, the stock rose 49.9% to $2.90 after the U.S. Department of Commerce approved its Oklahoma City facility as a Foreign Trade Zone (FTZ).
Following a reverse stock split earlier this year, Canoo’s year-to-date high was $7.08, recorded in the first weeks of 2024.
After missed production targets, no news on several of the partnerships it signed over the last few years, the departure of several executives, and lawsuits from several suppliers, the company faces the toughest moment since its inception.
In its latest interview, the company’s CEO Tony Aquila reaffirmed Canoo‘s goal of “move up production” next year despite admitting that the next four to six months will be “very tough”.
“Our goal is definitely to move up production in 2025,” he said. “We are big believers in American manufacturing, the heartland, and the workforce there. But the next four to six months will be very tough, and we’re in an uncertain political crossfire,” Aquila said speaking to Autoweek.
When disclosing its third quarter financial results, Canoo reported that cash and cash equivalents stood at $1.5 million as of September 30. Over the first five weeks of this quarter, the Texas-headquartered firm disclosed in a new SEC filing its cash reserves dropped from $1.5 million to $700,000 as of November 6.
Canoo has recently announced it entered into a $12 million secured revolving credit facility with AFV Management Advisors, a firm founded by Canoo’s CEO, Tony Aquila.
Written by Cláudio Afonso | LinkedIn | X
