EV maker Canoo's stock soars again after facility gets foreign-trade-zone OK
By Tomi Kilgore
Commerce Department's approval will help with Canoo's path to profitability by lowering vehicle costs
Shares of Canoo Inc. soared again Monday, toward a record one-day gain, after the maker of electric trucks and delivery vans said its facility in Oklahoma City was approved as a foreign trade zone.
The FTZ approval by the U.S. Department of Commerce allows for the elimination of customs duties on exports of EVs made at the facility, and for the deferral of duties on imported parts to make EVs sold in the U.S.
The stock (GOEV) shot up 66.6% in morning trading, which would surpass the current record rally of 53.2% on July 12, 2022.
It has now more than doubled - up 147% - since closing at a record low of $1.31 on Thursday, following a disclosure that an investor surrendered outstanding warrants it owned by buy Canoo shares.
The Oklahoma City facility that received the FTZ approval currently has more than 100 employees, and is expected to have up to 1,100 employees when it's at full capacity.
Canoo said the FTZ approval will "significantly enhance profitability" for international sales, lowering vehicle costs by up to 5% on imported parts. The company said it plans to announce sales to international markets "in the near future."
For U.S. sales, the approval improves working capital by "millions of dollars" as it will defer customs, duties and tariffs related to parts imports, until the EVs are delivered to customers.
The company said it continues to seek FTZ approval for its remaining manufacturing facilities in Oklahoma.
The stock has tumbled 45.4% year to date, while the Global X Autonomous & Electric Vehicles ETF DRIV has slipped 2.6% and the S&P 500 index SPX has gained 8.2%.
-Tomi Kilgore
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
03-18-24 1012ET
Copyright (c) 2024 Dow Jones & Company, Inc.-
What’s Happening in the Markets This Week
-
Worst-Performing Stock ETFs of the Quarter
-
Q3 in Review and Q4 2024 Market Outlook
-
Top-Performing Stock ETFs of the Quarter
-
September Jobs Report Forecasts Show Moderate Hiring Gains
-
Port Strike a Headache for Shippers but a Potential Tailwind for Certain US Transport Stocks
-
13 Charts on Q3′s Roller-Coaster Rally for Stocks and Bonds
-
5 Stocks to Buy Instead of Overpriced US Equities
-
Consumer Defensives: Despite Angst, Thirsty Investors Have Names to Pursue
-
Industrials: Many Stocks Overvalued After Q3 Outperformance
-
Basic Materials: Despite Index Rise, We See Multiple Long-Term Opportunities
-
What the Election Could Mean for Big Tech Stocks
-
3 Lessons From Recent Stock Market Drama
-
Consumer Cyclicals: Even Amid Moderating Consumer Spending, We See Discounts
-
Healthcare: Valuations Look Fair Overall, With Select Industries Still Undervalued
-
Utilities: Falling Interest Rates, Growth Outlook Boosting Stocks