What happened
Wednesday was a generally good day for electric vehicle (EV) makers, on the back of pronouncements from its most high-profile executive. Happily for EV maker Canoo (GOEV -6.77%), this came just after the company reported an encouraging set of quarterly results. Investors traded Canoo stock nearly 6% higher, trouncing the 1.2% gain of the S&P 500 index on the day.
So what
Said executive is, it nearly goes without saying, Tesla honcho Elon Musk. Tuesday night, he took the stage at the EV manufacturer's annual meeting, expressing confidence in the future despite what he believes will be a tougher macroeconomic environment.
When Musk speaks, the EV world listens, and his bullish outlook in the face of potential economic challenges was heartening to many investors. Canoo isn't directly comparable with Tesla, as it concentrates on different product categories, yet it's sure to benefit from higher EV take-up if it plays its cards right.
Additionally, on Wednesday, Canoo was still basking in the afterglow of its first-quarter earnings report. The pre-revenue company managed to trim its net loss considerably on the back of cuts in expenses. Like Tesla's Musk, the EV maker believes it will post solid production figures this year. Better still, it's projecting that this number will double in 2023.
Now what
As we all know, however, talk is cheap and Canoo is yet to prove that it can effectively produce, market, and sell its vehicles. That first quarter was a good one, and the EV landscape is very favorable for manufacturers just now; investors will be keeping a sharp eye on this company to see how well it can take advantage.
