Canoo may have unveiled a new electric delivery van today, but shares of Hennessy Capital (NASDAQ:HCAC) were not driving higher. In fact, HCAC stock actually closed out Thursday down by more than 5%. So what do investors need to know ahead of the Canoo SPAC merger? And is the downturn in HCAC stock reversible?
To start, investors should make sure they understand the full story with HCAC stock. Hennessy Capital is a blank-check company planning to take EV startup Canoo public. In fact, shareholders will vote on the SPAC merger in just a few days. If all goes well, Canoo will start trading on the Nasdaq Exchange under the ticker GOEV.
Today, with the vote just around the corner, Canoo revealed its second vehicle. With that in mind, here are 11 things investors need to know:
- Canoo is calling its new all-electric vehicle the multi-purpose delivery van, or MPDV.
- The company said that it plans to launch two different sizes of the MPDV.
- Investors should note that the smaller size will have an initial price of $33,000.
- Additionally, Canoo is planning to launch these vehicles on a limited basis in 2022.
- After that, the EV startup will scale up production for a full MPDV launch in 2023.
- Importantly, Canoo said it wants these electric delivery vans to fulfill multiple different purposes.
- For example, it said that it envisions both large last-mile delivery firms and independent contracts as potential customers.
- The MPDV is the second vehicle from Canoo, and it will rely on the same unique EV platform.
- Canoo also said that it believes its electric delivery vehicles will have best-in-class total costs of ownership.
- The two size variants will have three battery options — 80, 60 and 40 kilowatt hours.
- The 80 kWh battery will go from a 20% to an 80% charge in 28 minutes.
Why Did HCAC Stock Sink on the Canoo MPDV News?
It is not entirely clear why HCAC stock closed lower on Thursday, especially as previous news of the vehicle launch sent HCAC shares climbing.
However, there is one possible answer. As Sean O’Kane wrote for The Verge, the launch of the Canoo electric delivery van represents a big pivot for the company. In fact, new Executive Chairman Tony Aquila described the MPDV launch as a new chapter for Canoo. Now, it seems as if the passenger electric vehicle is no longer the focus of Canoo. Aquila suggested as much, noting that the lifestyle and passenger vehicle market is not where he sees the most potential.
Additionally, The Verge report brings with it news of some executive shake up. CEO Ulrich Kranz, one of the Canoo co-founders, is no longer on the board of directors. He will remain in the CEO seat, and will serve as a special advisor to Aquila. However, new paperwork details the potential to remove Kranz if it would be in the best interests of Canoo.
But what does this mean for investors? Ahead of the Canoo SPAC merger, it is hard to say exactly how the MPDV will benefit the company. However, we have seen a real interest in all-electric vehicles for last-mile delivery purposes, such as the ones from Workhorse (NASDAQ:WKHS) and others. Additionally, with the launch of the MPDV sizes, Canoo updated its website to show there are two new vehicles coming soon.
Lastly, ahead of the Canoo SPAC merger, California-based Roth Capital set a $30 price target on Canoo and HCAC stock. Keep a close eye on Canoo here. It will be interesting to see how the shareholder vote and potential SPAC merger shakes out.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.