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Why Canoo Stock Is Trading Higher Today

By John Rosevear - Mar 11, 2021 at 2:00PM

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The electric vehicle startup has revealed its plan to enter the electric-pickup-truck wars.

What happened

Shares of electric-vehicle start-up Canoo (GOEV -4.32%) were trading higher on Thursday after the company revealed an electric pickup truck that it plans to start manufacturing in 2023.

As of 1:56 p.m. EST, Canoo's shares were up about 13.1% from Wednesday's closing price.

So what

Like other upcoming Canoo vehicles, the company's new pickup truck is based on its proprietary "skateboard" platform, which incorporates the motors, batteries, suspension, and chassis structure into a single unit that is designed to be as flat as possible. (By the way, the truck doesn't yet have a name. A spokesperson confirmed that the company is simply referring to it as "the Canoo pickup truck" for now.) 

The fact that the platform is self-contained makes it relatively simple for Canoo to develop new vehicles that use it, and the fact that it's flat will give those vehicles extra interior space -- or in this case, extra cargo capacity in a relatively compact package. 

A green Canoo pickup truck, in a snowy forest.

Canoo expects to begin production of its electric pickup truck in 2023. Image source: Canoo Holdings.

The Canoo pickup truck will be available in rear-motor or dual-motor (all-wheel drive) configurations, with up to 600 horsepower and 550 foot-pounds of torque in the dual-motor configuration. It'll be able to haul up to 1,800 pounds of cargo and it's expected to have a range of more than 200 miles.

Canoo Chairman Tony Aquila said that the truck "is as strong as the toughest trucks out there," and that its unique design will make the pickup more productive for owners. 

"This truck works for you," Aquila said. "We made accessories for people who use trucks -- on the job, weekends, adventure."

Pricing wasn't announced. 

Now what

Canoo said that it will begin taking orders for the pickup in the second quarter of 2021, and that deliveries are expected to begin "as early as 2023." It will be the company's third model, after its "lifestyle vehicle" minivan and a commercial van, both due in 2022. 

Canoo hasn't yet announced when it will release its fourth-quarter and full-year financial results, and update investors on its plans, but I expect that will happen later this month. 

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