Startup EV maker Canoo may need to shut down for lack of cash

Startup Canoo's Q1 financial report reads like a dire call for help. The company posted a net loss of over $125 million in the first three months of the year and is doubtful it can even survive another quarter.

Canoo chairman and CEO Tony Aquila admitted the maker has around $104 million on hand but is expecting operating expenses of between $95-$115 million and capital expenditures between $85-$105 in the next three months. That means they need between $180 million and $215 million - neither of which Canoo can really afford at the moment.

Canoo says it has more than $600 million in capital, meant for the production of its EVs but that isn't easily accessible. It includes $300 million in total funding from a committed private investment in public equity (PIPE), along with a $300 million universal shelf. All of this means that Canoo has the technical means to support itself through Q2, but realistically will need to look for extra funds.

If you're not familiar with Canoo, it's a startup that has developed a multi-purpose delivery van (the MPDV), the Lifestyle Vehicle, and the Pickup Truck. All three share the same toyish-like design that many fans now attribute to the startup. It remains to be seen whether Canoo even gets the chance to put these cars on roads.

The Canoo MPDV, Lifestyle Vehicle and Pickup Truck

Source | Via