Canoo's New Facility Gets Trade Zone Status, Boosting EV Startup's Prospects

Canoo's Oklahoma City electric vehicle facility has been approved as a Foreign Trade Zone (FTZ), which will help improve profitability as production scales.

FTZ status eliminates customs duties on EVs exported overseas and defers duties on imported parts for US sales. This can lower costs by up to 5%.

FTZ approval simplifies customs processes and supply chain logistics, leading to further cost savings.

Canoo stock surged over 50% on the news to over $1 per share, recovering some losses but still down 80% over the past year.

The EV startup is making progress on manufacturing and has delivered its first vehicles, but still faces financial uncertainty with only $8.3 million in cash at end of Q3 2022.