Something made Canoo shares soar 18% on Thursday


It’s been three years since EV maker Canoo experienced the kind of trading day it had on Thursday.

Shares rose nearly 18% in trading on Wall Street before closing at 66 cents a share.  The price gain was $0.099 or 17.57% for the company that in recent weeks was in cash problems.

Three years ago, June 15, 2021, Canoo shares rallied 16.8% after closing at $11.05. While the percentage gain was similar, the obvious value in shares was a far cry from 66 cents recorded this week.

What made shares jump this week? Hard to say since Canoo did not make any startling press releases. Three years ago, the price gain was attributed to a suggestion in Reddit’s Wallstreetbets forum that Canoo could be considered as both a short and long term “tremendous play.”

Just a month ago, Canoo announced its first quarter financial results for 2023 and said its battery module manufacturing system had been delivered at its plant in Pryor. It also had commenced the initial installation of a general assembly line at the Oklahoma City facility where vehicles owned by the workforce can be seen daily.

The company also recorded an adjusted net loss of $72 million for the three months ended March 31, 2023 compared to $120.1 million a year earlier.

Still, Canoo was at risk of losing some of the Oklahoma state incentives to locate its operations in Pryor and Oklahoma City.