Canoo (GOEV) Partners With NASA to Transport Astronauts to the Launch Site in Custom-built EVs – Is This the Start of the Company’s Commercial Success?
Canoo (NASDAQ:GOEV), a manufacturer of passenger and commercial EVs based on a highly versatile skateboard platform, just made a major breakthrough by becoming associated with NASA's Artemis program.
As per the relevant press statement, Canoo will provide fully electric Crew Transportation Vehicles (CTVs) to NASA by June 2023. The company noted in its press release:
"We are honored to transport the Artemis crew to the launch site for the first human lunar landing in more than 50 years."
These CTVs will be manufactured at Canoo's mega micro-factory at Pryor, Oklahoma, and based on its all-electric LV model. The company also plans to launch commercial production of its EV lineup from the Bentonville, Arkansas, facility in late 2022.
As a refresher, Canoo's star attraction is its highly flexible and modular skateboard platform that enables the rapid development of electric vehicles – the entire process concludes in 18 to 24 months – at a substantially reduced cost. Crucially, the company's skateboard platform offers direct integration of battery modules and features the flattest and lowest profile in the industry, thereby maximizing interior space and lowering costs.
Readers should note that Canoo is still in its pre-revenue phase. The company does plan to commence commercial production in the latter part of 2022. Against this backdrop, Canoo's partnership with NASA would entail a sizable public spotlight, creating a conducive environment for a flood of new orders. Nonetheless, as we now know from the experience of Lucid Group (NASDAQ:LCID) and Rivian (NASDAQ:RIVN), the prototype stage is a veritable walk in the park when compared to the commercial ramp-up. Consequently, while today's deal bodes well for its prospects, Canoo's overall financial viability still remains materially uncertain.
Canoo shares appear to have pared their relatively robust pre-market gains, with the stock up just a little over 1 percent at the time of writing. Year to date, the stock is down a whopping 36 percent.