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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Last week, we reported that the e-bike world had a new motor claiming to be the lightest and most efficient. Now, we’re already seeing TQ’s new TQHPR40 motor proliferate on more road and gravel e-bikes, including the recently announced E-ASTR from Ridely.
Ridley’s new E‑ASTR brings lightweight electric assistance to its already impressive ASTR gravel platform, powered by the cutting-edge TQ HPR40 mid-drive system. Unlike bulkier e‑bike setups, this system adds just 1.17 kg (2.6 lb) at the crank and a discreet 1.46 kg (3.2 lb) and 290 Wh battery hidden within the downtube, keeping the frame’s silhouette nearly identical to the non-electric version of the same bike. According to BikeRumor, riders looking closely might spot only a slightly fatter downtube, internal cable routing, and a handlebar-end LED indicator, giving visual clues without shouting “electric bike.”
What the E‑ASTR gives up in sheer power from the petite motor, it gains in ride feel. The HPR40 is said to deliver a modest 40 Nm of torque and up to 200W of assist, or enough to smooth out climbs or offer a tailwind on gravel without overpowering the rider. With support cut off at 25 km/h (15.5 mph), pedal responsiveness remains natural and fluid. Combined with the ASTR’s race-inspired geometry, the bike looks to offer sharp handling and comfort suited to the rigors of modern gravel routes.
Ridley is currently offering the E‑ASTR in three spec levels: a value SRAM Apex XPLR AXS build €7,199 (or approximately US $8,500), a mid-range SRAM Rival XPLR AXS 1×13 version for €8,199 (or approximately US $9,700), and a top-tier Shimano GRX 2×12 Di2 model for €8,899 (or approximately US $10,500). Each features high-end drivetrains, integrated cockpit options, carbon wheels, and industry-standard gravel brakes and tires. With its race-ready frame and stealthy, lightweight e‑assistance, the E‑ASTR is positioning itself as a high-performance gravel machine that stays true to its roots, delivering help when needed, without overshadowing the rider.
Ultra-lightweight motors like the TQHPR40 are quietly reshaping the e-bike industry by making electric assistance almost invisible, both in looks and in feel. As systems shrink and integrate more seamlessly into traditional bike frames, they’re opening the door to new categories of performance-oriented e-bikes that preserve the ride dynamics of analog bikes while offering just enough support when it counts.
For riders who value a natural pedaling experience but still want a little help on climbs or longer days, and especially for aging riders who want to maintain their riding habits despite father time taking an impact on joints and muscles, these minimalist systems are proving that you don’t need a bulky battery or a massive motor to get the benefits of going electric. The result is a wave of stealthy, high-performance e-bikes that are less about replacing effort and more about enhancing the ride.
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After a month off trying to wrap our heads around all the chaos surrounding EVs, solar, and everything else in Washington, we’re back with the biggest EV news stories of the day from Tesla, Ford, Volvo, and everyone else on today’s hiatus-busting episode of Quick Charge!
It just gets worse and worse for the Tesla true believers – especially those willing to put their money where Elon’s mouth is! One believer is set to lose nearly $50,000 betting on Tesla’s ability to deliver a Robotaxi service by the end of June (didn’t happen), and the controversial CEO’s most recent spat with President Trump had TSLA down nearly 5% in pre-morning trading.
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Hyundai is getting ready to shake things up. A new electric crossover SUV, likely the Hyundai IONIQ 2, is set to debut in the coming months. It will sit below the Kona Electric as Hyundai expands its entry-level EV lineup.
Is Hyundai launching the IONIQ 2 in 2026?
After launching the Inster late last year, Hyundai is already preparing to introduce a new entry-level EV in Europe.
Xavier Martinet, President and CEO of Hyundai Europe, confirmed that the new EV will be revealed “in the next few months.” It will be built in Europe and scheduled to go on sale in mid-2026.
Hyundai’s new electric crossover is expected to be a twin to the Kia EV2, which will likely arrive just ahead of it next year.
It will be underpinned by the same E-GMP platform, which powers all IONIQ and Kia EV models (EV3, EV4, EV5, EV6, and EV9).
Like the Kia EV3, it will likely be available with either a 58.3 kWh or 81.4 kWh battery pack option. The former provides a WLTP range of 267 miles while the latter is rated with up to 372 miles. All trims are powered by a single electric motor at the front, producing 201 hp and 209 lb-ft of torque.
Although it may share the same underpinnings as the EV2, Hyundai’s new entry-level EV will feature an advanced new software and infotainment system.
According to Autocar, the interior will represent a “step change” in terms of usability and features. The new system enables new functions, such as ambient lighting and sounds that adjust depending on the drive mode.
It’s expected to showcase Hyundai’s powerful new Pleos software and infotainment system. As an end-to-end software platform, Pleos connects everything from the infotainment system (Pleos Connect) to the Vehicle Operating System (OS) and the cloud.
Pleos is set to power Hyundai’s upcoming software-defined vehicles (SDVs) with new features like autonomous driving and real-time data analysis.
As an Android-based system, Pleos Connect features a “smartphone-like UI” with new functions including multi-window viewing and an AI voice assistant.
The new electric crossover is expected to start at around €30,000 ($35,400), or slightly less than the Kia EV3, priced from €35,990 ($42,500). It will sit between the Inster and Kona Electric in Hyundai’s lineup.
Hyundai said that it would launch the first EV with its next-gen infotainment system in Q2 2026. Will it be the IONIQ 2? Hyundai is expected to unveil the new entry-level EV at IAA Mobility in September. Stay tuned for more info. We’ll keep you updated with the latest.
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