Why Canoo Shares Tumbled Today
Specialty EV maker Canoo (NASDAQ: GOEV) reported its first-quarter financial update last night, and it gave investors a warning they didn't want to hear. The initial reaction Wednesday morning was for shares to tank more than 17%. While the stock recovered somewhat, it still remained down 8.3% as of 11:10 a.m. ET.
The drop extended the stock's downward trend this year, with it dropping over 35% in just the last month. It wasn't so much the first-quarter report itself that is likely driving the pessimism today. Rather it was a warning in the company's Securities and Exchange Commission (SEC) filing. Management said that after an analysis of the business, it "has identified substantial doubt about our ability to continue as a going concern." That warning doesn't mean that bankruptcy is imminent, but it does put Canoo on investors' radar.
Source Fool.com
