Canoo (NASDAQ: GOEV) Stocks Plunges On Debut Post Merger With SPAC

3 min read | December 23, 2020 08:53 AM EST | By Team Kalkine Media

Canoo (NASDAQ: GOEV) Stocks Plunges On Debut Post Merger With SPAC

Canoo Inc. (NASDAQ:GOEV)

Current Stock Price: US$ 18.89

The US-based company manufactures electric vehicles with innovative design and advance tech models. The company is also developing EVs that can be used for fleet or last-mile delivery. The firm provides vehicle subscriptions instead of full possession.

The EV producer’s 13.30 million scrips changed hands on the first day of trading. Canoo’s present market capitalization stands at nearly US$ 251.237 million, as per NASDAQ data.

Hennessy Capital Acquisition Corp. (HCAC: US or NASDAQ: HCAC) withdrew from exchanges, and the company stopped trading at US$ 19.49 per stock on December 21. The company stock returned approximately 92 per cent in 2020. The company’s market cap stood at approximately US$ 727 million as of December 21. The company stocks had a price-to-book (P/B) ratio of 149.9. The company made a buzz by announcing the Canoo SPAC merger in August this year. The SPAC firm went public in February last year and raised US$ 261 million via its Initial Public Offering (IPO).

@Kalkine Image 2020

Why Are EV Stocks Rallying?

The electric vehicles’ stocks are steering to a record double-digit growth, led by robust latest quarterly results. The key reason for this rally is the U.S. president-elect Joe Biden’s poll promise to spend US$ 2 trillion on clean vehicles and other clean energy plans.

This massive investment could further strengthen this evolving industry.

Moreover, the fossil fuel-dependent Canadian economy also has initiated its mission towards net zero-emission by 2050, driven by higher subsidies for green energy firms. Consequently, EV stocks are rising across North American markets.

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