JUSTIN, Texas and LONDON - Canoo Inc. (NASDAQ: NASDAQ:GOEV), an American electric vehicle (EV) maker, has announced a service, maintenance, and repair (SMR) partnership with Northside Truck & Van Ltd., a leading automotive service provider in the United Kingdom (TADAWUL:4280). This collaboration aims to support and maintain Canoo's light commercial vehicles (LCVs) for its commercial fleet and government customers in the UK.
The agreement allows Canoo to tap into Northside's extensive network of over 280 garages across England, Scotland, and Wales, providing 24/7/365 maintenance service availability. Northside's expertise in EV service and repair is expected to offer a seamless maintenance experience for Canoo's clients, with parts inventory sourced directly from Canoo.
Tony Aquila, Investor, Executive Chairman, and CEO of Canoo, expressed enthusiasm about the partnership, emphasizing the importance of qualified and professional service for the AutoNetworks experience. The partnership aligns with Canoo's commitment to delivering cutting-edge solutions and professional SMR services, aiming to exceed customer expectations and optimize operations.
Northside's SMR personnel will collaborate with Canoo's Quick Reaction Force team to provide instant service to Canoo pilot vehicles, which are anticipated to be on UK roads in Q4 of 2024. The partnership is expected to offer expert service from certified technicians, nationwide reach for convenient access to services, and a dedicated team for parts distribution across the UK.
Keith Sims, Managing Director of Northside Truck & Van, highlighted the company's commitment to supporting Canoo's mission of providing sustainable commercial EVs. Northside is the first commercial dealership in the UK to be accredited with the Electric Vehicle Approved (EVA) standard, further ensuring that Canoo electric cargo vans receive top-notch care.
Canoo, founded in 2017, is known for its innovative electric vehicles and steer-by-wire technology on a common modular platform. The company is headquartered in Justin, Texas, with teams across the United States and facilities in Oklahoma City.
This announcement is based on a press release statement from Canoo Inc. and does not include any forward-looking statements or predictions of actual performance. The information herein is presented as factual content regarding the collaboration between Canoo and Northside Truck & Van Ltd.
In other recent news, Canoo, an electric vehicle company, has reported a strategic shift in its market focus towards commercial, government, and fleet customers during its Q3 2024 earnings call. The company reported a record revenue of $891,000 for the quarter and an adjusted EBITDA loss of $37.7 million, a 6.5% reduction from the previous year. H.C. Wainwright, however, adjusted its outlook on Canoo by reducing its price target to $2.00 from the previous $4.00, influenced by factors such as delays in vehicle production and delivery timelines. Despite the revised price target, the firm maintained a Buy rating on the stock.
Canoo has raised $28 million and secured a $12 million credit facility this quarter, and is also rolling out fleet vehicles in the U.K., taking advantage of government incentives for zero-emission vehicles. Operational adjustments include consolidating facilities from six to three and increasing higher-paying jobs in Texas and Oklahoma. Cash and equivalents stood at $16.1 million, with a forecast of $30 million to $40 million cash outflows in the next quarter due to facility consolidation. These are recent developments in the company's strategy and financial position.
InvestingPro Insights
As Canoo Inc. (NASDAQ: GOEV) expands its service network in the UK through its partnership with Northside Truck & Van Ltd., investors should consider some key financial metrics and insights from InvestingPro.
According to InvestingPro data, Canoo's market capitalization stands at a modest $48.71 million, reflecting its status as a niche player in the electric vehicle industry. The company has shown impressive revenue growth, with a 259.15% increase over the last twelve months as of Q3 2024. This aligns with the InvestingPro Tip that analysts anticipate sales growth in the current year, which could be further bolstered by the new UK service partnership.
However, investors should be aware of some challenges. An InvestingPro Tip indicates that Canoo operates with a significant debt burden and may have trouble making interest payments. This is particularly relevant as the company expands its operations internationally, which could require substantial capital investment.
The company's financial health also raises concerns. With a gross profit margin of -87.02% and an operating income margin of -11,423.39% for the last twelve months, Canoo is not currently profitable. This is reflected in another InvestingPro Tip, which notes that analysts do not anticipate the company will be profitable this year.
Despite these challenges, Canoo's stock is trading at a low Price / Book multiple of 0.23, which could potentially indicate undervaluation if the company's growth strategies, including this UK expansion, prove successful.
For investors considering Canoo, it's worth noting that InvestingPro offers 20 additional tips for a more comprehensive analysis of the company's prospects. These insights could be particularly valuable given the volatile nature of the EV market and Canoo's ambitious expansion plans.
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