With a Short Interest of Over 33 Percent of Its Entire Float, Canoo (GOEV) Starts Receiving Some Much-Needed Love From WallStreetBets

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Canoo (NASDAQ:GOEV), a company that is developing passenger and commercial electric vehicles (EVs) based on a highly versatile skateboard platform, seems to have suddenly caught the roving eyes of retail traders on the WallStreetBets Reddit forum.

Of course, with a short interest in excess of 33 percent of its entire float, Canoo is a perfect match for WallStreetBets traders, who seem to have perfected the art of igniting a short squeeze in downtrodden stocks.

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Canoo

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As a refresher, Canoo’s star attraction is its highly flexible and modular skateboard platform that enables 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.

Late last year, Canoo unveiled a new multipurpose electric vehicle aimed at last-mile deliveries and other small businesses. Expected to start retailing in 2022 from $33,000 onward, this van is the second addition to the company’s product portfolio, following the announcement of a subscription-only van in 2019. The smaller variant of the new van will offer a cargo space of 230 cubic feet and a maximum range of 230 miles, based on an 80-kWh battery pack. On the other hand, the larger variant will offer 500 cubic feet of cargo space and a maximum range of 190 miles, again based on an 80-kWh battery pack. Canoo also has a pickup truck in the works.

In recent months, Canoo seems to have shelved its plans to offer EVs via a monthly subscription. In the same vein, the company also seems to have abandoned its partnership with Hyundai and Kia, which entailed the use of its skateboard platform. As per its management’s recent tone, the company might try to go solo, but that would entail a much larger CAPEX requirement.

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Of course, the devil is in the details. Canoo has yet to record a single sale, with deliveries slated to begin only in 2022. We also know that developing a prototype is easy. Ratcheting up production is the hard part.

Canoo

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Despite these risks, Canoo seems to be attracting the interest of WallStreetBets investors as a short-term play (read this thread). There are only around 75,000 shares available for shorting, as per a tabulation by Fintel. This makes a short squeeze ignition a much easier proposition.

Canoo shares are up over 13 percent today. So, has the short squeeze already started? Time will tell, I guess.

The author has no position in any of the stocks mentioned. WCCF TECH INC has a disclosure and ethics policy.
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