Shares of Canoo (NASDAQ: GOEV) are experiencing a downturn even as the electric vehicle (EV) manufacturer broadcasts its recent growth into the Saudi Arabian market with new commercial vehicle sales.
The leap into the Saudi market follows an agreement with Jazeera Paints, a prominent paint producer, which involves an initial purchase of 20 EVs to bolster its fleet, with an option to acquire an additional 180 vehicles. Canoo is set to supply LDV 130 and LDV 190 model delivery vehicles to Jazeera Paints, marking Canoo’s entrance into a market worth an estimated $30 billion.
Canoo’s top executive, Tony Aquila, expressed his enthusiasm about the partnership, highlighting its alignment with Saudi Arabia’s environmental objectives under the Kingdom’s Vision 2030. He emphasized the strategic importance of the collaboration, which is expected to advance sustainable technologies within the rapidly evolving sector.
“Our partnership is a crucial step in our targeted geographic expansion to the KSA region with a significant and forward-thinking fleet that is committed to adopting sustainable technologies in the burgeoning industry it serves. I have had the distinct pleasure of discussing with Abdullah bin Saud Al-Romaih, CEO of Jazeera Paints, the ways in which we can jointly fulfill the Crown Prince’s environmental goals for the Kingdom’s Vision 2030.”
Despite this strategic move, Canoo’s stock has not been met with investor optimism. This is attributed to a recent earnings announcement that fell short of expectations, forecasting revenues between $50 million and $100 million for 2024, a stark contrast to the $152.52 million revenue projection by analysts.
As of the latest trading session, GOEV’s stock has dropped by 33.4%. This decline reflects investor sentiment and the weight that financial performance reports have on stock prices.
More stock market updates and developments are available, including the latest fluctuations of stocks such as Gritstone Bio (NASDAQ: GRTS), Acorda Therapeutics (NASDAQ: ACOR), and Kidpik (NASDAQ: PIK).
- More on Gritstone Bio’s stock performance
- Acorda Therapeutics’ latest stock market results
- Kidpik’s stock market surge details
Regarding Penny Stocks and Low-Volume Stocks: InvestorPlace typically does not cover companies with market caps below $100 million or those trading less than 100,000 shares daily due to the high risk of manipulation. Any commentary on such stocks will include a clear disclosure of these risks to the reader.
Disclaimer: The views expressed here are solely those of the author and do not necessarily represent the opinions of InvestorPlace. At the time of writing, the author holds no positions in the mentioned securities.