In a strategic move to bolster its manufacturing capabilities and scale production, Canoo Inc, a prominent high-tech advanced mobility company, has successfully executed a significant asset acquisition by securing a cache of manufacturing assets at dramatically reduced prices for its Oklahoma City facility. The announcement has ignited a surge in Canoo Inc.’s stock, which opened today at $0.27, marking a notable increase from Friday’s closing session at $0.23.
At the time of this publication, Canoo Inc stock (GOEV) has witnessed a surge.
Canoo Inc
Current Price: $0.25
Change : +0.01
Change (%): (6.05%)
Volume: 168.7M
Source: Tomorrow Events Market Data
The stock is witnessing heavy trading activity, with over 168 million shares changing hands, a stark contrast to the daily average of 29.9 million shares. Investors are reacting positively to Canoo’s proactive approach in securing essential manufacturing assets as the company positions itself for heightened production levels in the upcoming year.
The recent asset acquisition by Canoo encompasses a range of manufacturing components, spanning from robotics to controls processing equipment, specifically designated for building cutting-edge vehicle cabins. The company is strategically deploying these assets as it ramps up manufacturing to fulfill an increased number of customer deliveries projected for 2024. Notably, Canoo has consistently pursued alternative avenues to procure high-value equipment at reduced costs, and this recent transaction reflects a purchase at more than 80 percent below the estimated market value.
Greg Ethridge, Chief Financial Officer at Canoo, emphasized the company’s adaptability and creativity in navigating the evolving landscape of manufacturing asset acquisition. He stated, “We are a creative and adaptive team and continue to find alternative ways to acquire manufacturing assets to meet our production goals and customer commitments. With the increasing cost of the capital environment, the Canoo team has been diligent in deploying capital and has aggressively pursued critical manufacturing assets at reduced prices.”
Ramesh Murthy, Chief Accounting Officer at Canoo, highlighted the company’s prudent investment strategy, stating, “While many companies invested in capital equipment prematurely, we continue to phase our investment with our growth. These opportunities to acquire assets at significantly discounted prices have allowed us to further reduce our 2023 capital expenditures and also to improve our guidance by millions of dollars.”
Canoo’s commitment to responsible growth is not only reflected in its financial strategy but also in its impact on job creation. The newly acquired manufacturing assets will be strategically deployed in Oklahoma, contributing to Canoo’s manufacturing strategy and leading to the creation of advanced manufacturing jobs within the state.
As the company forges ahead with its ambitious production plans, the strategic asset acquisition by Canoo positions the company for sustained growth and underscores its commitment to efficiency, cost-effectiveness, and innovation in the rapidly evolving landscape of advanced mobility.
