Why Canoo (GOEV) Stock Is Skyrocketing

Canoo Inc GOEV shares are trading higher by 56% to $3.03 during Monday’s session after the U.S. Department of Commerce has approved its Oklahoma City facility as a Foreign Trade Zone.

The company says FTZ designation enables Canoo to eliminate customs duties on vehicles sold internationally and defer duties on imported parts used in domestic sales. The company sources over 90% of its parts from the U.S. and allied nations, with 70% from North America. This designation is expected to reduce vehicle costs by up to 5% for international sales and improve working capital for domestic sales by deferring customs duties until the vehicle is delivered to customers.

Tony Aquila, Canoo’s Investor, Executive Chairman and CEO, expressed gratitude to stakeholders for achieving this milestone, emphasizing the economic growth, job creation, and long-term financial benefits for Canoo. The company plans to expand its manufacturing site in Oklahoma, aiming to bring more supply partners closer to the facility. Canoo’s manufacturing strategy focuses on owning the supply chain, distinguishing it from competitors who outsource these operations.

Canoo is seeking approval for its remaining manufacturing facilities in Oklahoma, with plans to establish one of the largest FTZs in the state. This expansion is expected to generate high-paying direct and indirect jobs, contributing to the growth of the advanced manufacturing sector in America’s heartland.

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Is GOEV A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Canoo‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Canoo) does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 25.59%, you'll need to buy a share of Dividend 15 Split Corp by the Mar. 27, 2024. Once done, you can expect to receive a nominal payout of $0.1 on Apr. 10, 2024.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Canoo will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

According to data from Benzinga Pro, GOEV has a 52-week high of $19.50 and a 52-week low of $1.22.