Canoo, the failing electric vehicle startup, believes it is on the verge of bankruptcy. In plain terms, the company states that it only has enough cash to endure another quarter and is doubtful whether it will be able to continue operations after that.
Canoo was formed in late 2017 by former BMW executive Stefan Krause, who left the faltering electric vehicle startup Faraday Future. Faraday Future sued Krause and some of the other executives who co-founded Canoo — which was then called Evelozcity — for poaching employees and allegedly stealing trade secrets, though the dispute was settled in late 2018.
The company is developing a number of electric vehicles, including the MPDV, a multi-purpose delivery van, and the Canoo Pickup Truck. The toyish truck demonstrated how far Canoo is ready to go with the design of the microbus-style vehicle it first displayed in 2019, which it had planned to sell on a subscription-only basis.
As of March 31st, the company had $104.9 million in cash and cash equivalents. Canoo lost $125.4 million in the last three months, compared to $15.2 million in the first three months of 2021.
In recent months, the corporation has begun laying off executives. Canoo stated last year that the Securities and Exchange Commission was looking into the company’s merger with a special acquisition company. Canoo also launched a lawsuit this week to reclaim gains made by a big investor with ties to China.
