June 22, 2024

Out post-es

Automotive rocks

Electric start-up Canoo could be on the brink of collapse


The electric vehicle maker is seemingly struggling to pay its bills, and may be heading towards default – prompting industry rumours tech giant Apple could be eyeing a buyout.

US electric vehicle start-up Canoo may be on the brink of collapse, its latest earnings report reveals.

The company now concedes “substantial doubt about [the] ability to continue as a going concern.”

In layman’s terms, the means Canoo’s board is not confident it has the cash required to continue operation.

During the first quarter of this year (January to March), the company posted a GAAP net loss of $US125.4 million.

Over the same three-month period, it claims to have raised just $US2 million through its “investment activities.”

Canoo has been publicly traded since 2020, and was briefly valued at $US3.55 billion despite having never built a production car.

In the wake of recent financial and development struggles, it has since plunged to $US0.78 billion – a fall of 78 per cent.

Earlier this month Canno announced it was suing investor Pak Tim Li, citing improper trading practices.

Unsubstantiated industry rumours this week suggest tech giant Apple may be looking to buy the struggling company.

Canoo has revealed four concepts, and says all are destined for production: a people mover, sedan, pick up, and van.

The line-up will be underpinned by a shared skateboard platform, compatible with single and dual-motor layouts.

Dubbed the Gamma, the unusually-shaped people mover has been promised for US showroom arrivals before the end of this year.

The company claims it is holding 17,500 preorders for the vehicle, valued at approximately $US750 million.

However, according to the latest investor report just 39 customer examples have so far been built.

William Davis

William Davis has written for Drive since July 2020, covering news and current affairs in the automotive industry.

He has maintained a primary focus on industry trends, autonomous technology, electric vehicle regulations, and local environmental policy.

As the newest addition to the Drive team, William was brought onboard for his attention to detail, writing skills, and strong work ethic.

Despite writing for a diverse range of outlets – including the Australian Financial Review, Robb Report, and Property Observer – since completing his media degree at Macquarie University, William has always had a passion for cars.

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