Skip to main content

EV startup Canoo is running out of cash and doubtful about its future

Image: Canoo

Canoo, the struggling electric vehicle startup, thinks it’s about to run out of money. In stark terms, the company reports that it only has enough cash to last another quarter and is unsure whether it will be able to stay afloat beyond that.

“As of the date of this announcement, we are reporting that there is substantial doubt about the Company’s ability to continue as a going concern,” the company states in its first-quarter earnings report.

Canoo was founded in late 2017 when former BMW executive Stefan Krause left then-struggling EV startup Faraday Future. Krause and some of the other executives who co-founded Canoo — which was then called Evelozcity — were sued by Faraday Future for poaching employees and allegedly stealing trade secrets, though the lawsuit was settled in late 2018.

The automaker has several EVs in the works, including the MPDV, a multi-purpose delivery van, and the Canoo Pickup Truck. The toyish truck showed just how far Canoo is willing to push the design of the microbus-style vehicle it first debuted back in 2019, which it originally planned to sell on a subscription-only basis.

The company says it has $104.9 million in cash and cash equivalents as of March 31st. Canoo lost $125.4 million over the last three months, compared to a loss of $15.2 million in the first quarter of 2021.

In a statement, Canoo chairman and CEO Tony Aquila says the company has $600 million “in accessible capital” to support the production of its lineup of EVs. That includes $300 million in total funding via a committed PIPE from an existing shareholder and an equity purchase agreement with financing partner Yorkville Advisors, as well as a $300M universal shelf, for which Canoo has filed.

The company has been shedding executives in recent months. Last year, Canoo reported that the Securities and Exchange Commission was investigating the company’s merger with a special acquisition company. And this week, Canoo filed a lawsuit to recoup profits made by a significant investor with ties to China.



Source: The Verge

Popular posts from this blog

iOS 14 Favorites Widget: How to Make a Replacement With Shortcuts

In iOS 14 , Apple overhauled widgets and introduced an option for adding ‌widgets‌ to the Home Screen , but in the process, a well-loved Favorites widget that existed in iOS 13 was removed. The Favorites widget let users set certain contacts and contact methods as favorites that were easily accessible, so you could, for example, add a favorite option for messaging Eric or calling Dan, with those actions executed with a tap. Why the Favorites widget was removed is a mystery and it could be a simple oversight with Apple planning to reintroduce it later, but for now, those who relied on the widget can recreate its functionality with Shortcuts. It takes some effort, but it may be worth the time investment if you often relied on your Favorites. Creating a Favorites Shortcut Making a shortcut that replicates the behavior of the Favorites widget isn't too tough, but if you want multiple favorite options, you'll need to create a separate shortcut for each one in the Shortcuts

The hidden cost of food delivery

Noah Lichtenstein Contributor Share on Twitter Noah Lichtenstein is the founder and managing partner of Crossover , a diversified private technology fund backed by institutional investors, technology execs and professional athletes and entertainers. More posts by this contributor What Studying Students Teaches Us About Great Apps I’ll admit it: When it comes to food, I’m lazy. There are dozens of great dining options within a few blocks of my home, yet I still end up ordering food through delivery apps four or five times per week. With the growing coronavirus pandemic closing restaurants and consumers self-isolating, it is likely we will see a spike in food delivery much like the 20% jump China reported during the peak of its crisis. With the food delivery sector rocketing toward a projected $365 billion by the end of the decade, I’m clearly not the only one turning to delivery apps even before the pandemic hit. Thanks to technology (and VC funding) we can get a ri

Apple Adds Support for Live Activities to Shazam

Apple today added support for Live Activities in Shazam, its free music discovery and identification app. Shazam's Live Activities keep the user updated when searching for music in the background, which is particularly useful when multitasking or identifying songs in other apps . The last significant update to Shazam arrived in January, allowing users to identify songs from other apps while listening with headphones. Apple acquired Shazam in 2018, and has been gradually bringing the app into closer alignment with ‌ Apple Music ‌ ever since, offering trials to the streaming service through the app and the ability to sync Shazams directly to ‌‌Apple Music‌‌. Shazam can be downloaded from the App Store for free . It can be accessed through the Control Center on ‌‌ iPhone ‌‌ and ‌‌ iPad ‌‌, through ‌ Siri ‌ commands, or on the Mac, as well as via widgets. Version 17.11 of Shazam is now available. Apple opened up its Live Activities API to third-party ‌iPhone‌ apps with the r

Review: Anker's Latest 3-in-1 Power Bank is a Versatile On-the-Go Powerhouse

Popular accessory brand Anker has just launched a new 10K version of its 3-in-1 power bank that offers up to 30 watts of charging power, a convenient display to quickly view exact charge status, an integrated USB-C cable for both input and output, and built-in folding prongs to recharge directly from a power outlet. I've recently been testing one of these Anker power banks out, and it has become a must-have accessory for my gear bag. Competitively priced at $44.99, the 10,000 mAh capacity means I can charge up my iPhone 15 Pro Max more than one and a half times while on the go, which is plenty for a long day out or even a weekend trip where easy access to power might be iffy. And the 30-watt charging speed means it'll charge my devices up quickly, meaning spending less time with my phone awkwardly tethered to a power bank while I'm out and about. A quick charge during a lunch or dinner is more than enough to keep my iPhone topped off for the remainder of the day. Th