Canoo (GOEV) stock surges after OKC EV facility gets key approval
Shares of American EV startup Canoo (GOEV) are surging after its Oklahoma City facility received approval as a Foreign Trade Zone (FTZ). The approval will help improve Canoo improve profitability as it scales production.
Canoo (GOEV) gets FTZ status for its OKC EV facility
After throwing a lifeline to keep its shares listed on the NASDAQ with a reverse stock split earlier this month, Canoo’s (GOEV) stock is surging following the approval at its OKC EV facility.
Canoo announced on Monday that the US Department of Commerce approved the plant as an FTZ, sparking the rally. The approval will help accelerate Canoo’s Made in America EV strategy, improve unit profitability, and “enable a faster path to breakeven.”
The plant currently employs around 100 workers but is expected to support up to 1,100 at full capacity.
By securing an FTZ designation, Canoo eliminates all customs duties on vehicles sold overseas and defers of customs duties on imported parts for EVs sold in the US.
Canoo sources over 90% of its parts in the US and free trade partners, with about 70% from North America.
Improving profitability
According to Canoo, the FTZ will “significantly enhance profitability” by lowering vehicle costs by up to 5% on parts imported from other parts of the globe. The cost reductions will be on EVs made in the US and exported overseas, which Canoo intends to announce “in the near future.”
For vehicles sold in the US, FTZ improves working capital “by millions” by derring customs, duties, and tariffs on imports.
Canoo expects additional cost savings through a simplified customs process and streamlined supply chain.
The EV maker is waiting for approval at its other manufacturing plans. If approved, Canoo FTZs will be one of the largest in Oklahoma.
Following the news, Canoo’s (GOEV) stock is up over 50% (+1.06 per share). After hitting an all-time low earlier this month, Canoo shares are bouncing. However, they are still down nearly 80% over the past year.
Electrek’s Take
Like other EV startups (or any growth company), a higher stock price makes it easier to raise funds (via debt) and attract new investors.
Despite the win, Canoo’s finances are still a concern. At the end of September, Canoo had only $8.3 million in cash and equivalents.
The EV maker lost $273.6 million through the first nine months of 2023. Although losses slimmed in Q3, Canoo still lost $112 million.
Canoo CEO Tony Aquila explained that although “we still have things left to prove,” Canoo is now manufacturing and generating revenue. The EV maker posted $519,000 in revenue on its first EV sales.
The EV maker is moving toward hitting 20,000 annual vehicle capacity. Canoo is making progress with the first official customer deliveries of its commercial electric van last month. It also announced that USPS is purchasing six LDV 190 delivery vans as a transition to electric.
Several EV startups like Canoo are struggling amid rising interest rates and more competition entering the market.
Fisker (FSR) announced earlier today that it is pausing production after failing to make an interest payment. The company is halting production for six weeks as it looks to get its finances in order.
Meanwhile, Canoo is serving a different market in commercial vehicles that could prove to be a lifeline to continue operations. With its “Made in America” approach, Canoo expects to benefit from the IRA’s Commercial Clean Vehicle Credit. With that, Canoo customers are eligible for a tax credit of up to $7,500.
As of Q3, Canoo had a +$3 billion order book and $750 million in commited orders (18,000 units).
We’ll learn more about Canoo’s financial situation and oulook for the year when it releases Q4 and full year 2023 earnings later this month.
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GM is recalling nearly 23,000 Chevy Equinox EV and Cadillac Optiq models due to a defect where the tire tread could fall off.
GM is recalling more Chevy Equinox EV models
In a letter sent to the National Highway Traffic Safety Administration (NHTSA), GM said it has decided to issue a safety recall for certain Chevy Equinox EV and Cadillac Optiq models from model years 2025 to 2026.
This time, it isn’t necessarily GM’s fault. The vehicles may be equipped with 21″ all-season tires that Continental Tire is recalling.
According to Continental, the tires were produced during the week of October 6, 2024, and may have a defect where the tire tread could partially or fully detach. The records show the defect is due to a nonconforming tread base rubber compound.
Owners of affected vehicles may notice unusual tread wear or bulging, vibration while driving, or tire noises. GM is unaware of any incidents related to the defect, but is issuing the recall out of an abundance of caution.
On September 18, 2025, GM inspected the assembly plant and confirmed there were no suspect tires in stock. The 21″ tires come standard on RS trims and are optional on LT1 and LT2 grades.
Although GM is recalling 22,914 Chevy Equinox EVs and Cadillac Optiqs, it estimates that only about 1% of them have the defect.
The recall includes:
- 2026 Cadillac Optiq: 214
- 2026 Chevy Equinox EV: 1,832
- 2025 Cadillac Optiq: 3,468
- 2025 Chevy Equinox EV: 17,400
GM dealers will check all four tires and replace them if needed, free of charge. Dealers were notified on October 16. Owner notification letters are expected to be mailed out on December 1, 2025.
You can contact Chevrolet’s customer service number at 1-800-222-1020 or Cadillac’s at 1-800-333-4223. GM’s recall number is N252525030. Owners can also call the NHTSA hotline at 1-888-327-4236 or visit the nhtsa.gov website for more information.
The Chevy Equinox EV is now the third best-selling EV in the US, trailing only the Tesla Model Y and Model 3. Meanwhile, Cadillac’s entry-level Optiq SUV is the fifth-most-popular luxury EV. The recall is minor and only affects a small percentage of models, so it’s not expected to have a major impact.
If you want to test one of them for yourself, we can help you get started. Check out our links below to find available Chevy Equinox EV and Cadillac Optiq models near you.
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In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss Tesla’s earnings madness, Rivian layoffs, Ford pausing F-150 Lightning, and more.
The show is live every Friday at 4 p.m. ET on Electrek’s YouTube channel.
As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.
After the show ends at around 5 p.m. ET, the video will be archived on YouTube and the audio on all your favorite podcast apps:
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Here are a few of the articles that we will discuss during the podcast:
Here’s the live stream for today’s episode starting at 4:00 p.m. ET (or the video after 5 p.m. ET:
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Some Tesla Cybertruck owners thought they were victims of vandalism, but it turned out that it was just a factory defect.
Earlier this year, amid Elon Musk’s controversial involvement in politics, there was a noticeable surge in vandalism against Tesla vehicles, particularly Cybertrucks.
Therefore, it’s not too surprising to see some owners worried that they were victims of vandalism when strange inscriptions appeared on their electric trucks.
Earlier this week, a Tesla Cybertruck owner posted on a Cybertruck Facebook group:
Any ideas how to remove a hydrochromic paint? Some person vandalized my truck. It only appears when wet.
The owner shared images of what he believed was invisible ink being used to vandalize his truck:
Several other owners chimed in and confirmed that they weren’t alone with this issue.
However, it is not vandalism. It’s a problem with Tesla’s protective film at the factory.
Another Cybertruck owner, Christian Maciel, had the same issue. He brought it to the Tesla service and shared the technician’s report.
The report mentioned “other owners report different initials (‘MPS’, ‘BLT’, ‘WC’)” showing up on the B pillar when wet – confirming that it is a widespread problem.
The culprit is an imprint from the factory protective film. Tesla wrote in the report:
Technician inspected the driver-side B-pillar and verified the presence of a persistent mark (‘BVT’) that appears when wet, confirmed as residue from factory protective film. The issue was caused by residue left after the removal of the factory’s protective film. Technician replaced the left-hand B-pillar applique to address the issue. The fix was validated by ensuring the mark no longer appears when the surface is wet.
They had to fully replace the part:
Tesla Cybertruck had about a dozen safety recall since going into production two years ago.
However, there are many more non-safety defects that led Tesla to conduct large-scale service of the Cybertruck.
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