JUSTIN, Texas - Canoo Inc. (NASDAQ: NASDAQ:GOEV), an advanced mobility company, has announced the establishment of Canoo Technologies UK Limited, marking its entry into the United Kingdom's market. The company, known for its electric commercial vehicles, will set up operations at Bicester Motion, an automotive campus in the UK, with plans to open in October.
The move by Canoo is a strategic effort to capitalize on the growing light commercial vehicle (LCV) market in the UK, which has seen a 42.0% increase in small van demand year-to-date in 2024. The UK government's Zero Emission Vehicle (ZEV) mandate targets 80% of new vehicles and 70% of new vans sold to be zero-emission by 2030, with a goal of 100% by 2035.
Tony Aquila, Investor, Executive Chairman, and CEO of Canoo, noted the expansion as a key milestone in the company's global growth strategy, emphasizing the importance of establishing a local presence to serve commercial customers' needs. Canoo's right-hand drive commercial vans will be available for experience and test drives at the Bicester Motion center.
The selection of Bicester Motion reflects Canoo's commitment to innovation and sustainability, aligning with the campus's history of automotive innovation. The location will also allow Canoo to connect with a community of over 50 automotive brands.
Daniel Geoghegan, CEO of Bicester Motion, welcomed Canoo's decision, highlighting the shared vision of shaping the future of mobility. Canoo's customer-centric approach to the UK market will focus on meeting the diverse needs of commercial and government fleet customers, with pilots and vehicle rollouts planned.
Canoo was founded in 2017 and has since developed a range of electric vehicles with steer-by-wire technology on a modular platform, designed to maximize interior space for various business and government applications. The company is headquartered in Justin, Texas, with teams across the United States.
This announcement is based on a press release statement and does not include any forward-looking statements provided by Canoo. The company's plans and the anticipated benefits of its UK presence are subject to change and depend on various factors, including market conditions and regulatory developments.
In other recent news, Canoo Inc. has achieved a series of notable milestones. The company reported record revenue of $605,000 for Q2 2024, alongside a significant 50% reduction in cash outflow compared to the same quarter in 2023. Canoo also secured a financial agreement with Yorkville, providing a cash advance of over $25 million, supplementing the previously established Prepaid Advance Agreement that allows Canoo to request advances up to a total of $100 million.
Furthermore, Canoo successfully secured final activation of its Oklahoma City operations as a Foreign-Trade Zone (FTZ), a status granted by the U.S. Customs and Border Protection. This designation is expected to reduce Bill of Materials (BOM) costs by 5% for imported parts, improving the company's margins.
In terms of analyst notes, both H.C. Wainwright and Roth/MKM maintained their ratings on Canoo, with a Buy and Neutral rating respectively. However, both firms reduced their price targets due to a delayed production start.
These recent developments underscore Canoo's strategic progress and continued growth. Despite these positive developments, the company's management has guided for an Adjusted EBITDA loss ranging between $120 million and $140 million for the second half of 2024.
InvestingPro Insights
As Canoo Inc. (NASDAQ: GOEV) gears up for its UK market entry, InvestingPro data provides a snapshot of the company's financial health and market performance. With a market capitalization of $80.2 million, Canoo is positioning itself in the competitive electric commercial vehicles space. Despite a challenging financial outlook with a negative P/E ratio of -0.17, analysts are anticipating sales growth in the current year, which could be a positive sign for the company's expansion efforts.
InvestingPro Tips indicate that Canoo operates with a significant debt burden and may have trouble making interest payments on its debt, reflecting the financial risks associated with its aggressive growth strategy. Moreover, the company's stock has been identified as trading in oversold territory, suggesting potential investor caution or a market undervaluation.
For readers interested in a deeper dive into Canoo's financial metrics and market performance, InvestingPro offers a range of additional tips, with 20 more detailed insights available, including analysis on cash burn, profit margins, and stock volatility.
InvestingPro's real-time data also highlights Canoo's recent stock performance, with the price having fallen -90.53% over the last year, indicating significant market pressure. As Canoo enters the UK market, this data is crucial for investors to consider the potential risks and rewards associated with the company's stock.
For those following Canoo's journey, staying informed with the latest InvestingPro metrics and tips, available at https://www.investing.com/pro/GOEV, can provide valuable context to the company's strategic moves and financial standing.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.