- Electric-vehicle startup Canoo writes in its first-quarter earnings report that “there is substantial doubt about the Company’s ability to continue as a going concern.”
- The company lost $125.4 million over the first three months of 2022 and says it has just $104.9 million in cash and cash equivalents as of March 31.
- Canoo had planned to begin production this year of its Lifestyle Vehicle in Arkansas, with the goal of building between 3000 and 6000 units. It still claims to have money set aside for start of production.
This was supposed to be the year that American startup Canoo would start building its podlike electric Lifestyle Vehicle, but it’s now looking like the project may never get fully off the ground. In its first-quarter earnings report, Canoo acknowledged that it is running out of cash, writing that “there is substantial doubt about the Company’s ability to continue as a going concern.”
According to Canoo, the Arkansas company has $104.9 million in cash and cash equivalents as of March 31. Meanwhile, Canoo says that in the first three months of this year, it lost a whopping $125.4 million, versus the first quarter of 2021 when Canoo lost $15.2 million. Canoo was founded in 2017 under the name Evelozcity after former BMW executive Stefan Krause jumped ship from perennially troubled startup Faraday Future. Canoo unveiled the Lifestyle Vehicle in 2019, revealed a delivery van called the MPDV in 2020, and showed a pickup truck in 2021.
Despite the dire financial circumstances, the earnings report also stated that the company has “more than $600 million in accessible capital to support Start of Production.” Canoo claims it built 17 production-intent prototypes in the first quarter, bringing the total prototype count to 39 vehicles, and completed more than 2000 miles of winter testing. Canoo also says it constructed battery modules for 43 test vehicles. The startup claims it has more than 17,500 preorders and did not explicitly revise its plans to start production this year in Arkansas. Canoo had previously announced that it was aiming to build between 3000 and 6000 units in 2022, but we would be surprised if even one consumer-ready Canoo ever rolls off the production line.
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Source: Motor - aranddriver.com
