Shares of electric vehicle (EV) start-up Canoo (NASDAQ: GOEV) spiked by as much as 18.5% Friday morning after a company insider showed serious confidence in the company's future with a big share purchase. As of 10:50 a.m. ET, Canoo shares were holding onto a gain of 12%.
Investors have had doubts as to whether Canoo could actually get its business off the ground. Management itself expressed "substantial doubt" about its future earlier this year when it said in its first-quarter report that it may not have enough cash to survive. Investors reacted to that uncertainty by pushing the stock down 85% year to date. But Canoo CEO Tony Aquila just bought about $10 million in shares this week according to a Form 4 Securities and Exchange Commission filing.
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Why Shares of EV Maker Canoo Are Soaring Today