Written by Cláudio Afonso | LinkedIn | X
In August 2023, the electric vehicle maker Canoo announced an incentive agreement with Oklahoma and the Cherokee Nation, valued at up to $113 million over 10 years, for its assembly facility in Oklahoma City and a battery manufacturing plant in Pryor.
At the time, the company led by Tony Aquila said it would invest more than $320 million in its Oklahoma City assembly facility and Pryor battery module manufacturing plant creating “more than 1,360 jobs at wages that exceed average state and local salaries.”
As the EV startup Canoo announces a “broader realignment of our North American operations,” the Oklahoma Department of Commerce said in a statement sent to News 9 that it is “in contact” with the manufacturer and “working to ensure that all performance requirements are met.”
“All Oklahoma Department of Commerce incentive programs are performance-based. Companies do not receive taxpayer dollars until they meet certain requirements, and safeguards are built into contracts that allow the state to claw back money if a company falls below its performance threshold,” the department said in a statement.
“The Department of Commerce has been in contact with Canoo and is working to ensure that all performance requirements are met,” the Department added.
In December 2023, Oklahoma took delivery of its first three Canoo vehicles, marking the return of vehicle manufacturing to the state for the first time in 17 years.
For $119,850, Canoo’s Lifestyle Delivery Vehicles (LDVs) were integrated into the state fleet, each allocated to different departments—Management and Enterprise Services, Transportation, and Corrections—as part of Governor Kevin Stitt’s fleet modernization initiative.
Shares of the electric vehicle startup Canoo jumped 26.4% on Friday erasing a significant part of the losses registered earlier in the week after announcing the departure of its CFO and the General Counsel.
In the after-hours session, the stock extended the gains and rose 3.84% to $0.538.
Year-to-date, the stock has lost approximately 91% of its value as investors continue to await mass production and large-scale deliveries of Canoo’s trucks and delivery vans following the agreements with major customers, including NASA, Walmart, and the U.S. Postal Service.
The company will report its third quarter earnings results next week on November 13, after the market close, with the conference call — with the CEO Tony Aquila and the newly appointed CFO Kunal Bhalla — following at 5 p.m. Eastern time.
Also, Ramesh Murthy, Canoo’s Senior Vice President of Finance, Chief Accounting Officer, and Chief Administrative Officer, will participate.
In the second quarter of the year, Canoo’s revenue reached $605,000, while its operating expenses decreased sequentially by 33%, or $20.7 million.
The startup disclosed earlier this week that it has entered into a $12 million secured revolving credit facility with AFV Management Advisors, LLC, an entity founded by the company’s CEO.
Written by Cláudio Afonso | LinkedIn | X
