Market Overview

Canoo Unveils Multi-Purpose Electric Delivery Vehicle Ahead Of SPAC Merger Plan

Canoo Unveils Multi-Purpose Electric Delivery Vehicle Ahead Of SPAC Merger Plan

California-based EV startup, Canoo Holdings Ltdrevealed its all-electric multi-purpose delivery vehicle on Thursday. The company claims that its latest breakthrough EV is designed to ensure that small businesses and last-mile delivery companies derive the maximum value from their investment.

What Happened: The vehicles designed using Canoo’s proprietary electric platform will start from a price range of $33,000, and customers can pre-order with a refundable deposit of $100.

Initially, the company will release two variants of the multi-purpose delivery vehicle in 2022, MPDV1 and MPDV2, followed by newer versions like MPDV3 over time. Although the production and availability during the early stages will be limited, the company plans to gradually upscale in 2023.

Canoo’s Executive Chairman Tony Aquila said that “the vehicle is affordable and offers greater cargo capacity than the current electric delivery offerings in its class. We aim to lower the total cost of ownership and increase return on investment for everyone from local small business owners to large fleets.”

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Why It Matters: Canoo estimates that owners can generate a return on capital investment in the range of $50,000 to $80,000 in a span of six to seven years.

With the best-in-class cost-benefit claim, the company plans to attract a wide range of customers like service technicians, independent contractors, and utility companies. It is also extending an option to retailers, large entities, including retail and logistics companies, to create a custom co-developed vehicle to meet specific delivery criteria.

According to reports in August, Canoo were to go public through a SPAC merger with Hennessy Capital Acquisition Corp IV (NASDAQ: HCAC) at a $2.4 billion valuation by the end of 2020.

Last week, CNBC’s “Mad Money” show host Jim Cramer recommended the stock as a buy at a price target of $15.64.

Price Action: HCAC shares are down 2.12% in the pre-market session on the last check Friday.

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