The medium-duty electric vehicle space continues to get smaller. Seven-year-old electric vehicle startup Canoo has filed Chapter 7 bankruptcy and announced an immediate halt to operations. A press release noted the liquidation process is being overseen by a bankruptcy trustee in the Delaware Bankruptcy Court.
Canoo Inc., once listed on the Nasdaq Composite under the ticker symbol GOEV, was a notable player in the EV market, particularly in the electric cargo segment. Despite its partnerships with NASA, the Department of Defense, the U.S. Postal Service, the state of Oklahoma, Walmart and other groups, the company struggled to secure the financial backing to sustain operations.
The bankruptcy filing cites unsuccessful attempts to get financing from the U.S. Department of Energy’s Loan Program Office as a significant factor leading to Canoo’s insolvency. Nor did efforts to obtain capital from foreign sources stave off bankruptcy. Canoo had total liabilities exceeding $164 million against approximately $126 million in assets.
“We would like to thank the company’s employees for their dedication and hard work,” said Chairman and CEO Tony Aquila. “We know that you believed in our company as we did. We are truly disappointed that things turned out as they did. We would also like to thank NASA, the Department of Defense, The United States Postal Service (‘USPS’), the State of Oklahoma and Walmart for their belief in our products and our company. This means a lot to everyone in the company.”
Leading up to the bankruptcy, Canoo faced numerous challenges that compounded its financial instability. In the final months before the filing, the company furloughed its remaining employees and idled its factory in Oklahoma City. Despite having agreements to deliver electric vans to high-profile clients, Canoo struggled to ramp up production and secure broader market adoption. The company’s third-quarter financial reports revealed a persistent net loss, with a GAAP net loss of $112 million for the nine months ended Sept. 30, 2024, compared to $273 million in the same period in the previous year.
Executive departures and strategic pivots further aggravated operational struggles. In October, CFO Greg Ethridge and general counsel Hector Ruiz resigned, replaced by internal promotions. Under Aquila’s leadership, Canoo pivoted its focus from consumer sales to commercial fleets, which involved multiple shifts in production strategies and operational realignments. These changes increased operational costs and diminished investor confidence.
