Summary:
- Canoo Inc. filed for bankruptcy and ceased operations, joining other failed EV startups like Lordstown Motors and Fisker.
- Despite promising prototypes and high-profile clients, Canoo’s financial mismanagement led to losses of $488 million in 2022 and $303 million in 2023.
- The company’s inability to produce vehicles at scale, delivering only 22 vehicles in 2023, exacerbated its financial troubles.
- Canoo’s use of a SPAC to go public in 2020 provided quick funding but added public pressure, revealing flaws in its financial planning.
- The fallout raises doubts about the viability of small EV startups in an increasingly competitive market.
Canoo Inc., the electric vehicle startup with prominent clients like Walmart and NASA, has filed for bankruptcy on Friday and will “cease operations immediately.” Canoo joins the list of EV startups that failed recently under similar circumstances, such as Lordstown Motors and Fisker. These companies were essentially using up cash faster than they could secure new investments.
Formerly known as Evelozcity, Canoo, which entered the scene in 2017 as a disrupting EV startup, finally succumbed after seven years of promising prototypes, unable to secure additional sources of capital to relieve its severe financial strain. The company is liquidating its assets in a Chapter 7 proceeding in the Delaware Bankruptcy Court.
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