Canoo (NASDAQ:GOEV) Expands Into Saudi Arabia

Canoo (NASDAQ:GOEV) shares are gasping for air today after the electric vehicle maker’s fourth-quarter numbers and financial outlook disappointed investors. Still, the company is leaving no stone unturned as it fights to stay afloat. It has signed a major sales agreement with an eye on Saudi Arabia. Meanwhile, an interesting tidbit has emerged about the company’s expenses for its CEO’s private jet.

Eye on the Middle East

Shedding aside liquidity concerns, Canoo has entered into a vehicle sales agreement with Jazeera Paints. The latter has a presence in the Gulf Cooperation Council (GCC), Middle East and North Africa (MENA). The agreement involves an initial sale of Canoo’s 20 EVs to Jazeera alongside an option to add 160 more Canoo vehicles to the company’s fleet.

Importantly, the agreement provides Canoo an entry into the lucrative Saudi Arabian EV market. According to the company, the size of Saudi Arabia’s EV market is pegged at roughly $30 billion. Notably, Saudi Arabia aims to make 30% of new car sales in the kingdom electric by 2030.      

Watch Thy Expenses

For Canoo, the expansion into Saudi Arabia could mean a step towards tapping future opportunities in the Middle East Region. Still, reports that the company spent more on its CEO’s private jet in 2023 than the sales it generated for the entire year may make it difficult for investors to put confidence in the stock. According to TechCrunch, Canoo spent $1.7 million in reimbursements for CEO Tony Aquila’s private jet. In comparison, the company notched sales of just $886,000 for the year.

Is GOEV a Good Stock to Buy?

Not surprisingly, Canoo shares are down by nearly 25% today and by a massive 98% over the past three years. Overall, the Street has a Strong Buy consensus rating on Canoo alongside an average GOEV price target of $54.63.

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