Why Canoo (GOEV) Stock Is Skyrocketing
Portfolio Pulse from Henry Khederian
Canoo Inc (NASDAQ:GOEV) shares surged 56% to $3.03 after the U.S. Department of Commerce approved its Oklahoma City facility as a Foreign Trade Zone (FTZ). This designation allows Canoo to significantly reduce customs duties on international vehicle sales and defer duties on imported parts for domestic sales. Over 90% of Canoo's parts are sourced from the U.S. and allied nations, with 70% from North America. The FTZ status is expected to lower international vehicle costs by up to 5% and improve working capital for domestic sales. Canoo plans to expand its Oklahoma manufacturing site and aims to establish one of the largest FTZs in the state, which is anticipated to create high-paying jobs and contribute to the growth of the advanced manufacturing sector.
March 18, 2024 | 2:11 pm
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Canoo Inc's stock price surged 56% following the announcement of its Oklahoma City facility's designation as a Foreign Trade Zone by the U.S. Department of Commerce. This designation is expected to reduce international vehicle costs by up to 5% and improve working capital for domestic sales by deferring customs duties.
The significant stock price increase is directly attributed to the Foreign Trade Zone designation, which is expected to reduce costs and improve working capital. This regulatory approval positions Canoo favorably in the market, likely leading to increased investor confidence and potential for further stock price appreciation in the short term.
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