Written by Cláudio Afonso | LinkedIn | X
Shares of struggling EV startup Canoo hit a new record low early Monday at $0.114 per share, after the company announced that James C. Chen, a former Tesla and Rivian executive, has resigned and will depart the Board of Directors less than a year after joining.
Chen’s departure follows the announcement of another round of furloughs last week, which the company confirmed in the same SEC filing. The company led by Tony Aquila stated that “an additional 10 employees” were furloughed, “resulting in a total of 50 non-essential employees over the last 90 days.”
While Canoo has not disclosed which teams were affected or the duration of the furloughs, affected employees told EV that the furlough period is twelve weeks, or roughly three months — the same as in the previous round announced early November.
Additionally, EV learned on Monday that the affected teams include software engineering, prototype development, electrical and automotive engineering, accounts payable, branding, vehicle design, technical support, and IT.
As of the time of writing, Canoo shares have recovered part of the intraday losses and are trading 3% lower at $0.128.
In an SEC filing on Friday, the company also warned that if it fails to secure funding in the next few days, it will not be able to sustain its operations through the end of the year, just two weeks away.
“As described in our Quarterly Report on Form 10-Q filed on November 14, 2024, we operate in a capital-intensive industry which requires significant cash to fund our operations” Canoo said before adding that it “will need to raise substantial additional capital to fund operations through the end of 2024 to continue operations.”
Written by Cláudio Afonso | LinkedIn | X
