Canoo (NASDAQ:GOEV) stock is on the move Tuesday after the electric vehicle (EV) company announced its expansion into Saudi Arabia with commercial vehicle sales.
According to a press release from Canoo, this expansion is due to a deal with paint manufacturer Jazeera Paints. The company is purchasing 20 of Canoo’s EVs to add to its fleet. The deal also allows it to purchase another 180 units.
Canoo notes that this agreement will see Jazeera Paints acquire LDV 130 and LDV 190 delivery vehicles for its fleet. This expansion allows Canoo to enter a market that is valued at $30 billion.
Canoo Executive Chairman and CEO Tony Aquila said the following about the deal:
“This partnership is a key milestone in our targeted geographic expansion to the KSA region with a large and important fleet that is focused on deploying sustainable technologies across the fast-growing industry it serves. I have had the pleasure of working closely with Abdullah bin Saud Al-Romaih, the CEO of Jazeera Paints, on how we can partner together to deliver on the Crown Prince’s environmental initiatives for the Kingdom’s Vision 2030.”
GOEV Stock Falls Despite Expansion
Unfortunately, this expansion news comes on the heels of a lackluster earnings report from Canoo. That includes a revenue outlook of $50 million to $100 million for 2024. This is nowhere close to Wall Street’s revenue estimate of $152.52 million for the year.
GOEV stock is down 33.4% as of Tuesday morning.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
