According to foreign media reports, canoo, a troubled electric vehicle start-up, said it was about to run out of funds The company reported that under the current harsh conditions, its cash was only enough for another quarter and was uncertain whether it could continue to operate thereafter. "As of the date of this announcement, we have major doubts about the company's ability to continue as a going concern," canoo said in its first quarter earnings report
Canoo was founded at the end of 2017, when Stefan Krause, a former BMW executive, left Faraday future, a troubled electric vehicle start-up, and co founded canoo with other executives (the company was named evelozcity at the beginning of its establishment). Subsequently, Krause and others were sued by Faraday future, who accused them of poaching employees and suspected of stealing trade secrets. The lawsuit was settled at the end of 2018.
Canoo said that as of March 31, its total value of cash and cash equivalents was $104.9 million, and the company lost $125.4 million in the past three months. In contrast, it lost $15.2 million in the first quarter of 2021. The company also expects its operating expenses to be between $95 million and $115 million in the second quarter and its capital expenditure to be between $85 million and $105 million. So far, canoo has not generated revenue.
In recent months, canoo has been making management layoffs. Last year canoo said that the securities and Exchange Commission (SEC) was investigating its merger with special purpose acquisition company (SPAC). This week, the company filed a lawsuit to recover the profits of a major investor with ties to China.