GOEV - Cup and Handle, Apple + Hyundai potential partnership
Canoo has been the primary EV consultant to Hyundai, which enjoyed a 30% rally based on Apple partnership rumors (which they had to backtrack, as apple does not like to talk about ongoing development). If a partnership is made between the S Korean automaker and apple, Canoo is set to benefit immensely from either
1) Partial, indirect partnership with Apple via Hyundai (Currently Canoo/Hyundai share integrated development but will launch independent product lines). This is most likely as apple may not desire to fully design and produce its own vehicle, at least to start. May instead see building out its verticals to do so within the end of the decade.
2) Direct partnership with Apple - Depends on many factors, if so Apple and/or Hyundai would ideally like to have board representation in Canoo.
in 2020 Apple was actually considering an outright acquisition, most likely in Q2-Q3 before listing through a spac (HCAC).
3) No Apple - Hyundai Parnership - Still bullish on Canoo long term. Its goal of addressing the commercial market with a modular yet affordable option is sensible and attainable by small businesses. Current roadmap timeline of 2022 product launch is ambitious, but fundamentals and management are solid.
One factor to watch is their non-traditional "subscription" rather than a purchase or lease. I believe the initial discomfort will pass quickly once the revenue model is proven, and may actually be embraced by future clients as one less administrative thing to deal with, leaving more time to focus on the core business.
1) Partial, indirect partnership with Apple via Hyundai (Currently Canoo/Hyundai share integrated development but will launch independent product lines). This is most likely as apple may not desire to fully design and produce its own vehicle, at least to start. May instead see building out its verticals to do so within the end of the decade.
2) Direct partnership with Apple - Depends on many factors, if so Apple and/or Hyundai would ideally like to have board representation in Canoo.
in 2020 Apple was actually considering an outright acquisition, most likely in Q2-Q3 before listing through a spac (HCAC).
3) No Apple - Hyundai Parnership - Still bullish on Canoo long term. Its goal of addressing the commercial market with a modular yet affordable option is sensible and attainable by small businesses. Current roadmap timeline of 2022 product launch is ambitious, but fundamentals and management are solid.
One factor to watch is their non-traditional "subscription" rather than a purchase or lease. I believe the initial discomfort will pass quickly once the revenue model is proven, and may actually be embraced by future clients as one less administrative thing to deal with, leaving more time to focus on the core business.
Trade active:
Hold until a break of ichimoku cloud support or trading above trend line ($18.50)