Canoo ( NASDAQ: GOEV ) stock charged up on a lighter than expected loss in Q3 as well as production plans to match “significant customer demand” reported by CEO Tony Aquila.
For the third quarter, a $0.43 loss for the quarter was $0.05 better than anticipated, while management highlighted access to $200M through an "at-the-market offering" program as key to sustaining the company. With key orders from major retailers like Wamart, CEO Tony Aquila highlighted demand that should push the company to strong revenues once production begins.
"We targeted, signed and announced high grade credit customers and locked +$2bn in orders, a 100% increase from Q2, on the back of a validated, real-world use case proven product,” Aquila said. “We are excited to announce our manufacturing facility and SOP for November 17, 2022. Our Made in America focus has positioned us favorably with the recently announced IRA bill, and we are proud to be one of the only companies, that can take advantage of these incentives immediately. Under the backdrop of a volatile market, we will continue to access the capital markets with our just-in-time, milestone-based approach.”
The newly acquired facility in Oklahoma City is projected to reach a 20K unit annual run rate by the end of 2023. Production is set to begin in the first half of 2023, ramping more rapidly into the year-end. Aquila declared emphatically that customers will receive deliveries in 2023.
Despite the ambitious plans, Aquila highlighted a need to trim spending and rein in costs for the company against a more difficult macro backdrop.
“We continue to be tactical and judicious with our spend and have revised our expenditure guidance for the remainder of the year by driving efficiencies as we move towards SOP,” he told analysts on Tuesday evening. “We are now on track for a 40% reduction in operating expenses for the second half of the year, which is significant improvement compared to a previously disclosed projection of 20% reduction.”
Shares of Canoo ( GOEV ) rowed 12.82% higher in premarket trading on Thursday.
Read the earnings call transcript .
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Canoo stock surges over 10% higher on ambitious production plans