What happened
Through the close of yesterday's trading session, shares of Canoo (GOEV +81.25%) seemed to be on track end the week lower than they began. A company announcement heralding an addition to the C-suite, however, has investors racing to park this electric vehicle (EV) stock in their portfolios.
As of 2:12 p.m. ET, shares of Canoo are up 8.5%, having retreated from their earlier rise of 13.4%.
OTC: GOEV
Key Data Points
So what
After the market closed yesterday, Canoo announced that Ken Manget had been appointed chief financial officer, replacing Ramesh Murthy, who had served as the interim CFO. Murthy will stay with the company as the senior vice president of finance and chief accounting officer.
Celebrating the appointment of Manget to the new role, Tony Aquila, Canoo's CEO, stated that the company is "pleased to appoint Ken to Canoo's executive management team. We have worked together for many years, starting at Ontario Teachers' Pension Plan including as a consultant to AFV Partners."
In his position as CFO, Manget will be responsible for capital markets, investor relations, and accounting and financial reporting.
Now what
With the naming of Manget to the executive management team, EV investors, who had been on the sidelines with regard to Canoo, are gaining confidence that there will be some stability in the C-suite. After all, Murthy had served as the interim CFO for more than two years, since December 2021.
There are a variety of risks associated with an investment in an upstart company like Canoo -- especially in a burgeoning area like EVs, but a lack of faith in the stability of the management team is a top concern for potential investors. The appointment of Manget as CFO is a positive step for Canoo, but the company should sill remain on the radars of those with higher tolerances of risk.
