Shares of Canoo (GOEV) are up 10% after the electric vehicle maker reported a narrower financial loss for this year’s third quarter.
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Canoo announced an earnings per share loss of -$0.54, which was much better than the loss of -$0.77 that was the consensus expectation of analysts. However, revenue in the period totaled $900,000, which missed Wall Street estimates that had called for $1.80 million in sales.
GOEV stock had fallen 15% leading into the third-quarter print. A penny stock that trades for less than $1 per share, Canoo’s stock has proven to be extremely volatile and is down 89% on the year. The company has struggled to mass produce its Canoo electric van, as well as an electric pick-up truck. Canoo is also aiming to produce commercial electric vehicles.
Cost Savings
Canoo’s year-to-date revenue totals $1.50 million. Along with its third-quarter print, Canoo announced cost-savings measures. The company said that its cash outflow totaled $31.3 million in the third quarter, down 20.7% from the previous second quarter of 2024.
The company added in its earnings release that it plans to consolidate its operations in California, Texas and Oklahoma, which should generate annual cost savings of $12 million to $14 million. Management said they plan to move Canoo’s corporate headquarters to Texas from California.
Canoo had $16 million of cash on had as of September 30 this year.
Is GOEV Stock a Buy?
The stock of Canoo has a consensus Strong Buy rating among four Wall Street analysts. That rating is based on three Buy and one Hold recommendations made in the last three months. There are no Sell ratings on the stock. The average GOEV price target of $3.88 implies 520.70% upside from current levels.
