Startup Canoo will soon run out of money – the production of electric vehicles may never begin

Canoo, a fledgling electric vehicle company, has announced that it will only have enough funds for the next quarter, and it is not sure if it will be able to continue its work after this period. It may not reach the production of cars.

Image Source: canoo.com

Canoo was created in 2017 when former BMW chief executive Stefan Krause left Faraday Future, another startup. Subsequently, Faraday Future sued Mr. Krause and other co-founders of Canoo (at that time called Evelozcity), accusing them of poaching personnel and stealing trade secrets – the lawsuit was settled out of court in 2018.

Canoo has developed several models of electric vehicles, including an original and somewhat toy-looking pickup truck, as well as a van introduced back in 2019, which Canoo wanted to sell only by subscription. In the first quarter of 2022, the company’s net loss amounted to $125.4 million – for the same period in 2021 it was $15.2 million. As of March 31, Canoo had $104.9 million in cash and cash equivalents, as well as $600 million ” available capital” to support the production of electric vehicles.

In recent months, executives have been leaving the company, and the US Securities and Exchange Commission (SEC) has decided to investigate Canoo’s IPO through a SPAC takeover.

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Source: 3DNews – все новости сайта by 3dnews.ru.

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