Canoo is planning to launch avant-garde-looking vehicles for consumer and commercial uses that are fully ready to integrate autonomous-driving technology. A rumored Apple car would be all-electric and self-driving. The Los Angeles, Calif.-based company also plans to pioneer car subscriptions—something that may interest a tech company like Apple—offering drivers one all-in price for the use of a car. The fee would include the cost of the vehicle, insurance, repairs, and other considerations.
Canoo shares are up 13.9% in recent trading to $19.04. The move values Canoo stock at about $4.7 billion, based on 245 million shares outstanding after Canoo completed its merger with a special purpose acquisition company.
Canoo isn’t the only stock that has reacted to Apple speculation.
(005380.Korea) jumped 19.4% Friday and another 8.7% Monday following reports that Apple might pick the Korean auto maker as a partner.
Canoo and Hyundai actually have a connection. The pair have agreed to develop an EV platform based on “modular and scalable skateboard technology.” A skateboard platform refers to a EV platform where the motors, battery and driving components are all built together. It can, in theory, drive down manufacturing and development costs. An internal-combustion engine can’t easily be fully integrated into a chassis.
The moves in Canoo and Hyundai shares are significant, but any Apple car is likely years away. Apple still hasn’t commented on any of the recent reports. Canoo wasn’t immediately available for comment either.
Even though timing is uncertain, some stock-price reaction makes sense. Apple is, after all, the most valuable company in the world, and its stock is worth more than the top 25 auto makers combined. It’s bigger than the car industry, and it has the means to disrupt it.
Disruption could be a risk, but for now the Apple-as-EV-maker story has investors even more excited about EV stocks—if that’s even possible.
stock (TSLA) jumped roughly 740% in 2020. Shares are up another 20% so far in 2021. Even
(GM) stock is up almost 17% year to date, boosted by the company’s CES presentation Tuesday that focused on vehicle electrification and autonomous driving.
Apple stock, in fact, seems to be the only one that isn’t benefiting from the Apple car news. Its shares are down about 2% since Apple car plans surfaced in December. The
Dow Jones Industrial Average
have both added more than 3% over the same span.
Write to Al Root at [email protected]