Key points:
- The Canoo (GOEV) stock rice soared 94% premarket on the Walmart deal.
- Investors reacted positively to the deal to deliver 4,500 EVs to the retailer.
- Is now a good time to buy GOEV stock price? Read on to find out.
The Canoo Inc (NASDAQ: GOEV) stock price soared 94% premarket after announcing that Walmart Inc (WMT) has signed a binding contract to buy 4,500 of its all-electric vehicles, starting with the Lifestyle Delivery Vehicle (LDV).
The contract also allows Walmart to buy extra vehicles up to 10,000 all-electric vehicles. The retail giant intends to use the vehicles to deliver orders made online as part of its commitment to lower achieve zero emissions by 2040.
Also read: The Best Electric Car Stocks To Buy.
Canoo Inc was planning to start shipping its LDV in 2023 but will start making deliveries to Walmart later this year so that the two firms can finalise issues such as vehicle configuration within the Dallas Fort Worth metroplex.
The company’s vehicles will be driven by Walmart’s associates and tasked with delivering online orders ranging from groceries to other merchandise. Walmart is also considering using electric vehicles for its Walmart GoLocal services, which is its delivery-as-a-service business.
Investors cheered the announcement, as evidenced by the premarket rally in GOEV stock. However, I expect the stock to hold on to most of its gains after the market opens, given the significance of Walmart’s order to the upcoming EV manufacturer.
GOEV stock was down 70.60% before today’s announcement, and many hope the higher spike will translate into a sustained rally that lifts GOEV stock from its latest lows. Canoo expects to start producing the Lifestyle Delivery Vehicles in Q4.
So, should you buy Canoo (GOEV) stock? It is never a good idea to buy a stock after such a massive move higher. The prudent move is usually to let the rally play out over the coming days, which tend to be followed by significant pullbacks.
The best time to buy is when the outback starts tapering off, usually within a week or more.
*This is not investment advice. Always do your due diligence before making investment decisions.
GOEV stock price.
The GOEV stock price was trading 94.09% higher at $4.60 after rallying from Monday’s closing price of $2.37.