What happened
Shares of purpose-built electric-vehicle (EV) maker Canoo (GOEV -6.90%) spiked 15% Tuesday morning and remained up 12% as of 10:30 a.m. EST.
Canoo first began trading publicly late last month after merging with a special purpose acquisition company (SPAC).
So what
After surging prior to the closing of the transaction, shares had been on a steady decline until today. Today's bounce comes after shares were called a buy by Jim Cramer on CNBC's Mad Money show last night.
Canoo Lifestyle EV. Image source: Canoo.
Canoo shares had dropped about 30% since its public launch. After the stock closed at $12.50 per share on Monday, Cramer said, "I'd be a buyer of Canoo down here at $12."
Now what
Canoo is aiming for a EV niche using a "skateboard" platform that allows more vehicle cargo space for its "lifestyle" van-like vehicle and a multipurpose delivery vehicle (MPDV).
The company is also trying to differentiate itself with its business model. It will use a membership plan for Canoo vehicles that will provide services including maintenance and battery charging, as well as month-to-month flexibility for returns.
The lifestyle vehicle will have a 250-mile range and capacity for seven seats. Canoo MPDVs will be available in cargo volumes of 200 cubic feet and 450 cubic feet, both of which will have shorter battery range than the lifestyle vehicle.
The company won't begin producing the vehicles until 2022, so investors today need to know that there is risk of competition or other developments until then, making it a speculative investment.
