What happened

Just days after a trading session that saw shares climb 80%, Canoo (GOEV -8.52%) is on the go once again. On Thursday, shares traded up as much as 40% on news that the electric truck start-up has been selected to work with the U.S. Army on a potential project.

So what

Canoo, which is developing electric delivery vehicles and a van-like consumer vehicle, has taken shareholders on a wild ride this year. In May, the company issued a dreaded "going concern" notice, warning in its regulatory filing that it was running short on cash and saying that "substantial doubt exists" that it would be able to continue as a going concern for the next 12 months.

Heading into July, the stock was down about 75% year to date.

But the stock got a lift on Tuesday after Walmart reached a preliminary agreement to buy as many as 10,000 battery-powered delivery vans from Canoo.

On Thursday, Canoo delivered more good news to investors. The company said it has been awarded an Army contract to supply an electric vehicle for analysis and demonstration.

Now what

These announcements are clearly steps in the right direction for Canoo, but investors need to be careful not to get ahead of themselves. The regulatory filing that followed the press release on the Walmart deal revealed that Walmart's purchase order is non-binding, and includes warrants that would allow Walmart to own about 20% of Canoo's stock. The deal also bars Canoo from doing business with Walmart rival Amazon.

Similarly, the Army in its effort to explore new technologies does a lot of so-called demonstration contracts. Some of those efforts do pay off big for the companies involved, and the deal is clearly an opportunity for Canoo to demonstrate its technology to a huge potential customer. But there is no guarantee any significant amount of revenue will come out of the deal.

Even after its strong week, Canoo remains a highly speculative investment that, if things don't go to plan, could easily run out of resources. Investors drawn to the promise and excited about these announcements should limit the stock to a small, speculative part of a well-diversified portfolio.