Electric vehicles (EV) manufacturer Canoo (GOEV) and AVL have joined hands to develop, test and validate Advanced Driver Assistance Systems (ADAS) software for Canoo’s Lifestyle Vehicle.
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Shares of the company declined 2.6% in early trade on Friday.
The technology ensures the safety of occupants by giving vehicle feedback to drivers and reducing distractions. As per the terms of the deal, Canoo will hold the ownership of the software to ensure security, safety, compliance and compatibility across vehicles, beginning with the Lifestyle Vehicle.
The company said that the production of Canoo’s Lifestyle Vehicle would begin in late 2022 and have Level 2 ADAS functionality at launch. Notably, the vehicles will have over-the-air update capabilities, which will allow the addition of new ADAS features. (See Canoo stock chart on TipRanks)
The Chief Technology Officer at Canoo, Peter Savagian, said, “We have engineered an innovative and proprietary vehicle electrical system and a purposeful component set within our hardware. Our software needs to support this level of innovation.”
On September 20, Roth Capital analyst Craig Irwin maintained a Hold rating on Canoo with a price target of $7 (9% downside potential).
Irwin expects visibility of gamma vehicle testing, possibly by 2021-end, to serve as a positive catalyst for the stock.
The stock has a Hold consensus rating based on 2 Buys, 1 Hold and 1 Sell. The average Canoo price target of $11.50 implies 49.5% upside potential from current levels. Shares have lost 38.5% so far this year.
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