Canoo, the struggling electric vehicle startup, thinks it’s about to run out of money. Strictly speaking, the company reports that it only has enough cash to last another quarter and isn’t sure if it will be able to stay afloat beyond that.
“As of the date of this announcement, we advise that there are substantial doubts 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 the then-startup electric vehicle company Faraday Future. Krause and some of the other executives who co-founded Canoo, then called Evelozcity, were sued by Faraday Future for stealing employees and allegedly stealing trade secretsAlthough the demand was liquidated at the end of 2018.
The automaker has several electric vehicles in the works, including the MPDVa multi-purpose delivery van, and the Canoo Truck. The toy truck showed how far Canoo is willing to push minibus-style vehicle design. first debuted in 2019which he originally planned to sell by subscription only.
The company says it has $104.9 million in cash and cash equivalents as of March 31. Canoo lost $125.4 million in 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 production of its line of electric vehicles. That includes $300 million in total financing through a committed PIPE from an existing shareholder and a share purchase agreement with financing partner Yorkville Advisors, as well as a $300 million universal shelf, for which Canoo has applied.
the company has been fire executives In recent months. Last year, Canoo reported that the The Securities and Exchange Commission was investigating the merger of the company with a special acquisition company. And this week Canoo filed a lawsuit to recoup profits made by a major investor with ties to China.