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Canoo (GOEV) Doubts Its Ability to Continue as a Going Concern
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Canoo Inc. (GOEV - Free Report) is skeptical about its ability to continue as a going concern, per a recent 8K SEC filing.
If the company fails to raise the necessary funding, it may have to limit its operations or potentially shut down.
Although Canoo’s management is striving to raise additional capital, the company’s ability to raise funds through the sale and issuance of additional debt or equity securities or traditional banking or financing channels may be impaired.
The company’s existing cash resources and additional sources of liquidity are not enough to sustain planned operations for the upcoming 12 months.
Canoo reported a net loss of $29 million and $302.6 million in the fourth quarter of 2023 and full-year 2023, respectively. The company had incurred a loss of $80.2 million in the fourth quarter of 2022 and $487.7 million in full-year 2022.
The EV maker’s cash and cash equivalents fell to $6.4 million on Dec 31, 2023, from $36.6 million reported at the end of 2022.
With an aim to develop a new generation of sustainable cars, the company went public in 2022.
In August 2022, Canoo successfully conducted a pilot program with Walmart. As part of the program, GOEV's delivery vehicles were utilized for last-mile deliveries in the Dallas-Fort Worth area to support the retailer's eCommerce operations.
The EV industry is currently facing lower-than-expected demand. In light of ongoing demand challenges, many auto biggies have reduced their EV production target for 2024.
Amid the competitive EV landscape, many automakers are struggling to maintain their market share and obtain capital investment. Striking the right balance between growth and capital structure is getting tougher for industry participants like Canoo.
The EV maker has not disclosed potential funding sources or plans to address funding issues.
The Zacks Consensus Estimate for MOD’s 2024 sales and earnings per share (EPS) implies year-over-year growth of 4.3% and 67.7%, respectively. The EPS estimates for 2024 and 2025 have moved up a penny each in the past 30 days.
The Zacks Consensus Estimate for TM’s 2024 sales and earnings indicates year-over-year growth of 10% and 73.6%, respectively. The EPS estimates for 2024 and 2025 have improved 86 cents and $1.01, respectively, in the past 30 days.
The Zacks Consensus Estimate for ALSN’s 2024 sales and earnings indicates year-over-year growth of 2.1% and 3.2%, respectively. The EPS estimates for 2024 and 2025 have improved 67 cents and 71 cents, respectively, in the past 30 days.
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Canoo (GOEV) Doubts Its Ability to Continue as a Going Concern
Canoo Inc. (GOEV - Free Report) is skeptical about its ability to continue as a going concern, per a recent 8K SEC filing.
If the company fails to raise the necessary funding, it may have to limit its operations or potentially shut down.
Although Canoo’s management is striving to raise additional capital, the company’s ability to raise funds through the sale and issuance of additional debt or equity securities or traditional banking or financing channels may be impaired.
The company’s existing cash resources and additional sources of liquidity are not enough to sustain planned operations for the upcoming 12 months.
Canoo reported a net loss of $29 million and $302.6 million in the fourth quarter of 2023 and full-year 2023, respectively. The company had incurred a loss of $80.2 million in the fourth quarter of 2022 and $487.7 million in full-year 2022.
The EV maker’s cash and cash equivalents fell to $6.4 million on Dec 31, 2023, from $36.6 million reported at the end of 2022.
With an aim to develop a new generation of sustainable cars, the company went public in 2022.
In August 2022, Canoo successfully conducted a pilot program with Walmart. As part of the program, GOEV's delivery vehicles were utilized for last-mile deliveries in the Dallas-Fort Worth area to support the retailer's eCommerce operations.
The EV industry is currently facing lower-than-expected demand. In light of ongoing demand challenges, many auto biggies have reduced their EV production target for 2024.
Amid the competitive EV landscape, many automakers are struggling to maintain their market share and obtain capital investment. Striking the right balance between growth and capital structure is getting tougher for industry participants like Canoo.
The EV maker has not disclosed potential funding sources or plans to address funding issues.
Zacks Rank & Key Picks
GOEV currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Modine Manufacturing Company (MOD - Free Report) , Toyota Motor Corporation (TM - Free Report) and Allison Transmission Holdings, Inc. (ALSN - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MOD’s 2024 sales and earnings per share (EPS) implies year-over-year growth of 4.3% and 67.7%, respectively. The EPS estimates for 2024 and 2025 have moved up a penny each in the past 30 days.
The Zacks Consensus Estimate for TM’s 2024 sales and earnings indicates year-over-year growth of 10% and 73.6%, respectively. The EPS estimates for 2024 and 2025 have improved 86 cents and $1.01, respectively, in the past 30 days.
The Zacks Consensus Estimate for ALSN’s 2024 sales and earnings indicates year-over-year growth of 2.1% and 3.2%, respectively. The EPS estimates for 2024 and 2025 have improved 67 cents and 71 cents, respectively, in the past 30 days.