Why Canoo Stock Dropped Tuesday
In early July, specialty electric vehicle maker Canoo (NASDAQ: GOEV) shocked investors with news that it was getting a vehicle order from retail giant Walmart. Investors jumped into the stock, sending it up 80% in a single day. But the stock is down about 25% since then, including a drop of 15.6% today as of 10:43 a.m. ET.
Today's drop came from information gleaned from the second-quarter report Canoo released last night. After Walmart said it would order 4,500 vehicles from Canoo to supply its e-commerce delivery fleet, investors thought it was a lifeline for the company. Canoo said it would build the vehicles at its small Arkansas facility located near Walmart headquarters. But last night, Canoo CEO Tony Aquila said it will initially use a third-party contractor to produce the electric delivery vans.
Source Fool.com
