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 subscriptionsâ€”something that may interest a tech company like Appleâ€”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 isnâ€™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 â€œmodular and scalable skateboard technology.â€� 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 canâ€™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 hasnâ€™t commented on any of the recent reports. Canoo wasnâ€™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. Itâ€™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 stocksâ€”if thatâ€™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 companyâ€™s CES presentation Tuesday that focused on vehicle electrification and autonomous driving.
Apple stock, in fact, seems to be the only one that isnâ€™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]