GOEVW - Canoo: A House Of Cards Built On Dilution
2024-05-07 04:31:37 ET
Summary
- Canoo has historically relied on dilutive capital raises to fund its operations.
- While Canoo has access to $240.6 million in dilutive capital, I expect it to raise an additional $150 million to support its production ramp-up this year.
- I expect Canoo’s outstanding shares to increase by 210% this year, which could negatively impact its share price.
- Accounting for the possible dilution, my price target for Canoo is $0.2, implying 92% downside.
Canoo Inc. ( GOEV ) is an emerging EV maker that is targeting commercial fleet, government, and military customers. While the company has finally entered into its revenue-generation phase as it expects to start realizing meaningful revenues from vehicle sales this year, I’m bearish on its stock given its weak balance sheet. Canoo stated in its latest 10-K filing that it is operating on a going concern basis with a cash balance of $6.4 million....
Canoo: A House Of Cards Built On Dilution