In late December, when TechCrunch reported that EV startup Canoo had just $700K in the bank and was putting its staff on a “mandatory unpaid break,” it felt like there’s never been clearer writing on any wall in history.
That’s why it surprised few when, this week, Canoo announced that it would be ceasing operations and filing for Chapter 7 bankruptcy.
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Canoo had hoped to break into the electric vehicle market with a unique design that covered several bases for users. Calling it a “lifestyle vehicle” this took the form of a skateboard chassis supporting a swappable design that was pitched in delivery or passenger van styles, as well as a pickup truck.
And while the company has had some wins since its inception in 2017 – including the Army’s review of its Light Tactical Vehicles, as well as deals with the state of Oklahoma, Walmart and the USPS – that wasn’t enough to keep Canoo afloat.
Canoo announced on January 17th that it was insolvent after attempts to secure desperately needed funding had failed. The company said talks with the U.S. DOE Loan Program Office, as well as those with foreign sources, were unsuccessful in netting any financial support to keep the company going.
Chairman and CEO Tony Aquila said he was “truly disappointed that things turned out as they did” and thanked the company’s employees and customers for their belief in Canoo and its product. A press release issued by the company has said that Canoo would cease operations immediately and its assets would be liquidated.
Earlier this year, Canoo was the subject of some negative press when it was discovered that the company had reimbursed Aquila for the use of his personal private jet in 2023, to the tune of $1.7 million in 2023. Canoo’s revenue for the entire year was only $886,000.
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X-TIMESTAMP-MAP=LOCAL:00:00:00.000,MPEGTS:0
00:00.039 --> 00:06.530
In late December, when TechCrunch reported that
EV startup Canoe had just $700,000 in the bank
00:06.789 --> 00:10.069
and was putting its staff on a mandatory unpaid
break.
00:10.569 --> 00:14.430
It felt like there's never been clear writing
on any wall in history.
00:14.680 --> 00:19.030
That's why it surprised few when this week
Canoe announced that it would be ceasing
00:19.030 --> 00:21.559
operations and filing for Chapter 7 bankruptcy.
00:21.799 --> 00:25.680
Canoe had hoped to break into the electric
vehicle market with a unique design that
00:25.680 --> 00:27.670
covered several bases for its users.
00:27.959 --> 00:32.080
Calling it a lifestyle vehicle, this took the
form of a skateboard chassis supporting a
00:32.080 --> 00:36.310
swappable design that was pitched.
In delivery or passenger van styles as well as
00:36.310 --> 00:39.310
pickup trucks.
And while the company has had some wins since
00:39.310 --> 00:44.189
its inception in 2017, including the Army's
review of its light tactical vehicles,
00:44.310 --> 00:48.139
as well as deals with the state of Oklahoma,
Walmart, and the US Postal Service,
00:48.470 --> 00:51.220
that wasn't enough to keep Canoe afloat.
00:51.470 --> 00:56.349
Canoe announced on January 17th that it was
insolvent after attempts to secure desperately
00:56.349 --> 00:58.090
needed.
Funding had failed.
00:58.340 --> 01:01.779
The company said talks with the US DOE loan
program office,
01:01.840 --> 01:07.089
as well as those with foreign sources, were
unsuccessful in netting any financial support
01:07.089 --> 01:08.529
to keep the company going.
01:08.860 --> 01:14.129
Chairman and CEO Tony Akila said he was truly
disappointed that things turned out as they did,
01:14.180 --> 01:18.419
and thanked the company's employees and
customers for their belief in canoe and its
01:18.419 --> 01:20.809
product.
A press release issued By the company has said
01:20.809 --> 01:25.779
that Canoe would cease operations immediately
and that its assets would be liquidated.
01:26.080 --> 01:30.330
Earlier this year, Canoe was the subject of
some negative press when it was discovered that
01:30.330 --> 01:36.440
the company had reimbursed Akila for the use of
his personal private jet in 2023 to the tune of
01:36.650 --> 01:41.169
$1.7 million.
Canoe's revenue for the entire year was only
01:41.169 --> 01:42.959
$886,000.
01:43.529 --> 01:45.290
I'm Anna Wells.
This is manufacturing now.