Canoo (GOEV) 2020 Q4 Financial Performance Review

Canoo Inc (NASDAQ:GOEV), formerly known as Evelozcity, is one of several electric vehicle (EV) startups that are trying to capitalize on the booming EV market. Canoo went public in December through a reverse merger with Hennessy Capital Acquisition Corp., a special purpose acquisition company. Though Canoo is a newly listed startup, its top leadership has years of experience in the automotive space. For instance, its CEO Ulrich Kranz worked in management roles at BMW for more than 3 decades.

The Torrance, California-based company is currently working on several vehicles including a passenger electric vehicle, a multipurpose delivery van, and a pickup truck, which are expected to hit the market during the next couple of years.

If we look at the financial performance, Canoo recently reported a loss of $12.3 million, or 8 cents per share for the fourth quarter ended December 31, narrower than the loss of $42.7 million, or 57 cents per share in the comparable period of 2019. The company did not report sales as it is not generating any revenue as of now.

Capital expenditures in the quarter increased to $6.3 million, versus $3.9 million in the year-ago quarter. For the first quarter, Canoo expects capital expenditures in the range of $10 million to $12 million. Meanwhile, the company projected operating costs between $45 million to $50 million for the current quarter.

Speaking on the results, Canoo’s Executive Chairman Tony Aquila said in a statement, “Globally there are approximately 1.5 billion light vehicles and we believe that 80% of those will be replaced by EVs over the next 4 to 5 car generations. Canoo’s technology gives us a blank canvas to reimagine how the EV fits into our changing auto ecosystem.  We have focused on a use case approach to generate the largest possible total addressable market (‘TAM’) based off a common platform, our MPP1.”

See also 10 Best EV Stocks To Buy Now and 12 Best Autonomous Vehicle Stocks to Buy for 2021.