Canoo's Oklahoma Plant Gets A Green Light As A Foreign Trade Zone: Details

Electric Vehicle manufacturer Canoo Inc GOEV said the U.S. Department of Commerce has approved its Oklahoma City facility as a Foreign Trade Zone (FTZ).

The approval is expected to boost Canoo’s Made in America electric vehicle manufacturing strategy, improve unit profitability and enable a faster path to breakeven. 

The Oklahoma City facility currently employs more than 100 workers and will support as many as 1,100 good-paying manufacturing jobs at total capacity. 

FTZ designation facilitates the elimination of all customs duties on vehicles sold to customers overseas and for deferral of customs duties on imported parts used in vehicles sold domestically. 

Canoo sources more than 90% of its parts from the U.S. and allied nations out of which 70% of parts come from North America.

For international sales, the FTZ will enhance profitability by lowering the vehicle cost by up to 5% on parts imported from the rest of the world. 

“We are proud to announce that we have achieved another important building block in our strategy by creating one of the largest Foreign Trade Zones in the State of Oklahoma,” said Executive Chairman and CEO.

Price Action: GOEV shares are trading higher by 3.09% at $2.01 in premarket on the last check Monday.