Shares of electric vehicle maker Canoo (NASDAQ:GOEV) are on fire this morning after the Verge reported that it held talks with Apple (NASDAQ:AAPL) about a possible investment or a takeover. GOEV stock jumped as high as 30% in pre-market trading Wednesday.

An Apple EV has garnered quite the buzz in recent weeks, as Barron’s noted today.

According to the Verge, Apple held meetings with Canoo in the first half of 2020 as part of the iPhone maker’s top-secret moves to advance its own electric vehicle project. Canoo preferred taking on an investment from the tech giant, but talks ultimately fell apart.

Canoo recently closed its merger with Hennessey Capital Acquisition Capital IV. GOEV stock had a $4.02 billion market capitalization as of yesterday’s market close.

Where Will GOEV Stock Go?

InvestorPlace contributor Mark Hake yesterday wrote that GOEV stock was worth about 60% more than the day’s opening around $17 per share, based on his analysis of the company and Canoo’s own valuation from its slide presentation.

Canoo will not sell its vehicles. It only offers a subscription model. This is a lease of the EV, but with no definitive lease term and no down payment, both of which are traditionally central elements in car leases. Moreover, subscription “owners” of Canoo vehicles do not have to pay registration costs, maintenance costs or deal with the issues surrounding residual value.

Canoo says that this business model will be much more profitable than a one-time sale of the vehicle. It should also come with higher margins. It believes that it will make four times the margin of normal one-time sale manufacturers. This is why Canoo’s business model is different than the average EV maker.

Apple Rumors Lift EV Stocks

It wasn’t just Canoo shares that got a charge from the rumors. Barron’s noted that stock in Hyundai Motors (OTCMKTS:HYMTF) jumped 19.4% following reports that Apple was looking at the Korean car maker as an EV partner. The publication reported that even Tesla (NASDAQ:TSLA) and General Motors (NYSE:GM) shares were seeing some pickup from the rumors.

So, what to do here? I put a lot of stock (no pun intended) in Hake’s insights. He believes GOEV stock is worth about $26.93 per share, or more than 40% above this morning’s rumor-and-report fueled surge.

On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article. 

InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, following fintech, agtech and property tech startups.