Canoo ($GOEV), their Recent Big News, Upcoming Catalysts, and Short Interest
It’s no question that Canoo has been beaten down the last few months. It’s down over 50% from it’s pre-merger highs and dipped well below it’s former NAV of $10. The big question is : why?
The news of their cancelled deal with Hyundai during their first earnings call is what caused the most recent downward move, but was it really negative news? Why have your engineers work for another car company, helping them develop a car and giving them your valuable IP? It makes more sense to focus on your own products, which will lead to much more revenue over the years.
Their original CEO, Ulrich Kranz, leaving was also a contributor to this movement. But again, the move makes sense. Ulrich is an iconic engineer and designer. That’s where his focus should be. Having him step down and putting a business oriented CEO (Tony Aquila) is the right move. Not every engineer is Elon Musk. Kranz decided not to retain an engineering position with Canoo, leading me to…
Apple Hires Ulrich Kranz for It’s Rebooted Car Project see here
Lots of speculations can be made here. If Ulrich had left on bad terms, most speculation would be bad.
However, both publicly stated the departure was made on GOOD terms.
As you know, Apple tried to acquire Canoo in early 2020, which means their technology is the real deal. What do I think they’re targeting? Canoo’s Skateboard Platform
If Apple had this, it would speed up their creation of the Apple car since they would only have to design the piece that goes on top. And since Apple couldn’t buy Canoo, how could they get their hand on this? Hire Ulrich and have him make one? : No, Canoo has their technology (a.k.a Ulrich’s own tech) patented.
I speculate a deal is in the works where Canoo licenses out their skateboard platform to Apple to build a car on in exchange for some royalty they receive for each sale. And hiring Ulrich Kranz helps them because he knows how to build a car on the platform because HE MADE IT.
Of course this is highly speculative, but I believe it’s the simplest explanation.
- Investor Day
Canoo is holding their Investor Day next week on the 17th in Texas where they are actually letting investors attend and see their vehicles. They currently have 3 that we know of : the delivery van, pickup truck, and lifestyle vehicle(a.k.a minivan or BANGBUS). They have teased a sedan model in the past, and it’s speculated they will unveil it at this event.
- Manufacturing Announcement
Canoo’s CEO said that their contract manufacturer would be announced in Q3, likely during the Q2 earnings call. This is the only thing holding them back right now. Their product is much further developed compared to the other former SPAC EV’s, with 3 models that have drive-able prototypes. They may provide an update to us during Investor day.
Long and Behold: The Short Interest
Ortex is showing a current short interest rate of 30% of the share float, up 300% from their 10% short interest rate in January. They are betting against Canoo, and there are a few upcoming catalyst that could drastically change the market sentiment and blow them up.
This post contains highly speculative predictions, and I encourage you to read up on Canoo and do your own research. This is not financial advice.
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June 11, 2021 at 12:23PM