What happened

Longtime holders of Canoo (GOEV -6.77%) stock still may not be doing well, but its shares have been making up some ground this week. The stock is still down over 80% in 2022, but so far this week, shares are up about 23% heading into the final trading day, according to data provided by S&P Global Market Intelligence.

So what

This week's rally continues a positive trend that began late last week, and investors need to put it in perspective with where the company saw itself just months ago. After its first-quarter financial and operational update, management expressed "substantial doubt" about its future, saying it may not be able to continue operating its business. 

But several developments since then have changed the scenario, at least as far as Canoo CEO Tony Aquila is concerned. And Aquila showed his confidence with stock purchases totaling $10 million last week. The company announced another step in the positive direction for the business this week, too. 

Canoo light tactical vehicle for the U.S. Army.

Image source: Canoo.

Now what

The big insider purchase came after Canoo announced several deals that might have saved the business. First, the company announced a non-binding agreement in July for Walmart to purchase 4,500 Canoo commercial vans, with the potential for the retailer to more than double that volume. It followed that with fully binding orders for more than 12,000 vehicles from a work-ready van-rental provider and a national fleet-leasing company.  

This week Canoo announced it has fulfilled the delivery of its new Light Tactical Vehicle (LTV) to the U.S. Army for an evaluation that it announced earlier this year. The company says the vehicle "can be converted from a pickup to a flatbed truck, a cargo vehicle and more."

There's no definitive purchase order coming from that delivery, but the company certainly hopes it can lead to one. Investors should also realize Canoo hasn't shipped any of its vehicle orders as of yet. But after a more than 80% drop this year, some aggressive investors are following the CEO's lead and buying Canoo shares this week.