On Wednesday afternoon Nasdaq listed EV manufacturer Canoo (US:GOEV) provided their third quarter update to investors and announced an acquisition of a manufacturing facility in Oklahoma City. GOEV sank -10.3% leading into the result on Wednesday and rallied 5.1% in after hours trading as investors digested the news.

For the third quarter, Canoo generated a net loss of -$117.7 million, widening from -$80.9 million in the prior year. The group’s adjusted EBITDA loss narrowed from -$85.8 million in 2021 to -$80.8 million during the quarter.

Canoo reduced research and development expenses by ~$2 million down to $57 million during the quarter. Total costs rose as SG&A costs and depreciation rose when compared to the prior year.

The largest factor that drove the widened loss related to a -$2.1 million write-down relating to the fair value of contingent earnout shares liability which provided a $25.7 million profit in Q3 of 2021.

On a per share basis, Canoo lost -43 cents per share compared to the -35 cent result in the prior year.

The company ended the quarter with $6.8 million in cash and cash equivalents on the balance sheet with access to $200 million through an “at the market” offering program.

More importantly, Canoo’s order book expanded to more than $2 billion with $750 million in binding orders. The order book increased more than 100% in size when compared to the second quarter and included Walmart’s 4,500 vehicle purchase order.

For the final quarter of 2022, GOEV expects to incur Capex spending between $30-50 million and operating expenses between $70 and $90 million.

Canoo’s Chairman and CEO Tony Aquila commented on the result highlighting “Our Made in America focus has positioned us favorably with the recently announced IRA bill, and we are proud to be one of the only companies, that can take advantage of these incentives immediately.

Aquila also pointed out to investors that  “Under the backdrop of a volatile market, we will continue to access the capital markets with our just-in-time, milestone-based approach”

In addition to the result, Canoo announced to investors that it had acquired a vehicle manufacturing facility in Oklahoma City.

The manufacturing plant will be used to produce Canoo’s LDV and LV vehicles for customers and provides the firm with a clear path for production in 2023.

The facility will employ more than 500 staff and will have an annual run-rate of 20,000 vehicles by the end of 2023.

CEO Aquila highlighted that the facility has significant room for expansion with 120+ acres available on site. Other benefits of the site highlighted by management included ready-to-use infrastructure as well as the important strategic location with access to both road and rail.

Canoo plans to move all equipment to the plant during the first half of 2023 with production ramp up slated for the back half of the year.

GOEV has risen 2 ranks this week in popularity with retail investors and is now the 35th most held security. You can access this retail trade data for free by linking your portfolio here.

On average, GOEV holds an ‘overweight’ rating recommendation from the four institutions that cover the stock with a consensus price target of $8.10.

Fintel’s platform analysis of the underlying options market for GOEV suggests that investor sentiment remains bullish in the stock. This is explained by a Fintel put/call ratio of 0.30 which tells us that bullish sentiment from call option demand significantntly outweighs bearish sentiment from put demand.

The put/call ratio is determined by analyzing all put and call interest in the market for a stock over time with values towards 0 indicating stronger bullish sentiment as it means call open interest carries greater weight than put interest.

This article originally appeared on Fintel

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.