What happened
According to data compiled by S&P Global Market Intelligence, Canoo (GOEV 2.59%) stock was a winner this week, surging more than 28% higher over the period. Several items of good news, both specific to the electric vehicle (EV) maker and in general, were the factors driving the stock's advance.
So what
Canoo certainly got the week off to a roaring start, announcing on Monday that it had signed a long-term lease with affiliated entity AFV Partners for a factory located in Oklahoma City. The EV company's initial footprint in the facility will be nearly 500,000 square feet, and it has the option of expanding that presence.
The factory, an existing manufacturing site, sits on over 120 acres of space. Canoo said it can support a wide range of vehicle-making functions including robotic assembly, and paint and body shops.
Factories aren't cheap to operate; not coincidentally, also on Monday, the company announced it was converting existing stock warrants into common shares. This financial engineering move could bring in nearly $36 million in fresh capital if done optimally.
These developments alone were sufficient to boost investor sentiment on Canoo stock. Happily, the U.S. Environmental Protection Agency (EPA) provided new details on its efforts to reduce sales of traditional internal combustion engine (ICE) vehicles in favor of alt-fuel models like EVs.
Now what
We are rapidly approaching an inflection point with EVs, soon after which they will begin to be the rule on our streets rather than the exception. Manufacturers who can establish, maintain, or even grow their presence on the market should, therefore, do well. It's obvious that investors increasingly think Canoo has a shot.
