What's Going On With EV-Maker Canoo Stock? - Canoo (NASDAQ:GOEV)
Canoo shares are trading higher Thursday on continued upward momentum after the U.S. Department of Commerce approved its Oklahoma City facility as a Foreign Trade Zone (FTZ) on Monday. Canoo's stock is up nearly 200% since the announcement on Monday. Canoo Inc. (NASDAQ:GOEV) shares have risen following the approval of its Oklahoma City facility as a Foreign Trade Zone (FTZ) by the U.S. Department of Commerce. The FTZ designation eliminates customs duties on vehicles sold internationally and deferring import parts used in domestic vehicles sold domestically. This is expected to enhance Canoo's strategy of manufacturing electric vehicles in America, improve unit profitability, and expedite the path to achieving breakeven. The company's stock has risen nearly 200% since the announcement. Shares of Canoo have lost 64.35% year to date compared to the average annual return of -78.69%.
Published : 2 months ago by Erica Kollmann in Finance Auto
Canoo Inc. GOEV shares traded higher Thursday on continued upward momentum after the U.S. Department of Commerce approved its Oklahoma City facility as a Foreign Trade Zone (FTZ) on Monday.
What To Know:
The FTZ approval is anticipated to enhance Canoo’s strategy of manufacturing electric vehicles in America, improve unit profitability, and expedite the path to achieving breakeven.
At present, the Oklahoma City facility employs over 100 individuals and is projected to create up to 1,100 manufacturing positions at full capacity.
The FTZ designation eliminates customs duties on vehicles sold internationally and deferring customs duties on imported parts used in vehicles sold domestically.
“We are committed to expanding our 125-acre manufacturing site as a preferred location to bring more of our supply partners closer to us in the state. This strategic expansion is in the heartland of America, directly on I-40 in Oklahoma City, one of the most important and efficient routes for transporting products across the country,” said Tony Aquila, CEO of Canoo.
Canoo's stock is up nearly 200% since the announcement on Monday.
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Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.
Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.
Shares of Canoo GOEV have lost 64.35% year to date. This compares to the average annual return of -78.69%, meaning the stock has outperformed its historical averages. Investors can compare a stock's movement to its historical performance to gauge whether this is a normal movement or a potential trading opportunity.
Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Canoo stock currently has an RSI of 78.36, indicating overbought conditions.
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GOEV Price Action: According to Benzinga Pro, Canoo shares rose 27.27% to $4.34 on Thursday.
Topics: Markets