Startup Canoo goes bankrupt

An up-and-coming California-based electric car maker has filed for bankruptcy and announced it is going out of business. The company’s assets will be liquidated, and it will go under external management. Canoo developed electric vehicles with an original design and on its own platform, which was supposed to help save on the creation of new models and production.

However, things didn’t go according to plan. Losing money, Canoo had hoped to receive financial support from a US Department of Energy loan program, but this was not achieved. It was not possible to attract foreign capital either.

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Canoo was founded in 2017 as Evelozcity and changed its name in 2019. At the same time, the first-born of the startup were presented – a minivan, vans and a pickup truck on a modular platform. It never reached mass production, but Canoo collected orders from the government of Oklahoma, where it pledged to create two thousand jobs, as well as from NASA, Wallmart, USPS and other major clients.

NASA showed cars that will deliver astronauts to the launch site of a flight to the Moon Canoo showed an electric pickup truck for the US Army Recaro company saved from bankruptcy

In 2023, the startup earned about 900 thousand dollars, but the losses were much more serious: 303 million in 2023 and 118 million in the first half of 2024. Canoo claims it has no more than $50,000 left in its account, with debts estimated at between $10 million and $50 million.

Canoo is far from the first ambitious electric car maker to fail in recent years. Fisker went bankrupt in 2023. Already assembled Ocean crossovers (the only model of the brand) were sold at large discounts, and the founder of Fisker had to put his own house up for sale.

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