Written by Cláudio Afonso | LinkedIn | X
Shares of the electric vehicle startup Canoo plunged more than 75% to 25 cents on Tuesday’s pre-market trading session after the company filed for Chapter 7 bankruptcy last Friday.
As the Texas-based firm ceases operations, a bankruptcy trustee will oversee the liquidation of the company’s assets and the distribution of proceeds to creditors.
Canoo warned in mid-December that it was shutting down its factories in Oklahoma while working “to finalize securing the capital necessary to move forward with its operations.”
As EV reported in early December, the EV startup led by Tony Aquila was accelerating toward bankruptcy. Over the last 12 months, the company missed its production targets, shared no updates on several of the partnerships it signed over the last few years, saw several executives (including co-founders) and saw suppliers filing lawsuits claiming non-payment.
In the last 12 months, Canoo shares lost more than 99% of their value.
In early November, the company said it had only $700,000 in cash and cash equivalents, followed by three rounds of 12-week-long furloughs affecting most of its staff.
Canoo reported third-quarter revenue of $900,000. Previously, Canoo had forecasted an annual revenue between $50 million and $100 million.
However, the company withdrew its 2024 revenue guidance in September, along with projections for its manufacturing run rate, vehicle production, and deliveries for 2024 and beyond.
As its final effort, Canoo’s management tried over the last weeks to secure “financial support” from the U.S. Department of Energy’s (“DOE”) Loan Program Office. However, it was “unfortunately unable,” the company said in Friday’s statement.
Canoo’s official website went fully offline earlier last week redirecting all visitors to a third-party-managed investor relations page.
Written by Cláudio Afonso | LinkedIn | X
