Sunday, 13 July 2025
27.5 C
Singapore
28.5 C
Thailand
19.9 C
Indonesia
28.1 C
Philippines

Canoo files for bankruptcy, ending seven years of EV innovation

Canoo, a seven-year-old EV startup, filed for bankruptcy and ceased operations after failing to secure funding.

Electric vehicle (EV) startup Canoo, founded seven years ago, has filed for bankruptcy under Chapter 7 in the Delaware Bankruptcy Court. Once seen as a promising player in the EV market, the company announced on Friday that it will immediately cease operations and begin liquidating its assets.

Canoo disclosed that it had been in talks with foreign investors but could not secure the necessary funding. Efforts to obtain financial backing from the U.S. Department of Energy’s Loan Program Office also fell short. As a result, the company reported liabilities ranging from US$10 million to US$50 million but listed less than US$50,000 in assets.

This announcement follows a challenging year for Canoo. The company furloughed its remaining employees in recent weeks and halted production at its Oklahoma facility. By mid-November, Canoo’s financial situation had deteriorated to just US$700,000 in available funds.

Rise and fall of an ambitious EV player

Canoo’s journey began in 2017 when former executives from EV startup Faraday Future formed the company. Initially called Evelozcity, Canoo aimed to revolutionise the EV industry with modular vehicle designs and cutting-edge technology like steer-by-wire systems.

The company went public in December 2020 after merging with SPAC Hennessy Capital Acquisition Corp., raising $600 million. Over the years, Canoo produced a limited number of its distinctive, bubble-shaped electric vans, tested by notable partners such as NASA, the Department of Defense, and the United States Postal Service.

In 2022, Walmart expressed interest in purchasing up to 10,000 Canoo’s EVs. However, the agreement was non-binding, offering minimal risk for the retail giant while failing to secure long-term stability for Canoo.

In 2024, the startup also acquired assets from Arrival, another struggling EV company, though it remains unclear whether those resources were ever effectively used.

Leadership changes and strategic pivots

Tony Aquila, a serial entrepreneur and Canoo investor, became chairman and CEO after the company went public. Under his leadership, the company shifted its focus from consumer sales to commercial fleet customers. However, this strategy frequently changed its operational plans, including oscillating decisions on manufacturing its vehicles in-house or outsourcing production.

Despite plans to move its headquarters to Bentonville, Arkansas, Canoo eventually concentrated on setting up manufacturing facilities in Oklahoma. Aquila’s financial firm played a significant role in keeping Canoo afloat, loaning it millions to sustain operations. However, the loans were secured by priority claims on Canoo’s assets, further complicating its financial stability.

Final days of Canoo

Signs of trouble emerged in recent weeks. Employees on furlough reported receiving official termination notices, and some customers who had placed $100 deposits for consumer vehicles received refunds. Additionally, the company’s billboard outside its Texas office was removed.

Canoo’s bankruptcy follows a growing list of EV startups that have struggled to survive after going public via SPAC mergers, including Electric Last Mile Solutions, Lordstown Motors, Proterra, and Fisker.

With Canoo’s closure, the EV industry is faced with a stark reminder of the challenges that new entrants encounter in the competitive and capital-intensive market.

Hot this week

Rubio meets with China’s Wang Yi amid growing trade and defence tensions

Rubio meets China’s Wang Yi in Malaysia amid trade tensions, with both sides pushing for influence over Southeast Asia’s future.

Embedded LLM and AMD launch TokenVisor to boost AI monetisation for GPU neoclouds

Embedded LLM and AMD launch TokenVisor, a platform enabling monetisation and management of AMD GPU clusters for LLM workloads.

UiPath unveils next-generation enterprise automation platform at Singapore summit

UiPath introduces its next-gen agentic automation platform in Singapore, bringing together AI agents, robots and people to drive enterprise efficiency.

Best action cameras in 2025 for every adventure: From budget picks to pro-grade gear

Discover the best action cameras in 2025 for every adventure, from budget-friendly options to pro-level gear with 8K video, advanced stabilisation, and rugged designs.

Samsung unveils slimmer Galaxy Z Fold7 with big camera and AI upgrades

Samsung launches its thinnest foldable yet, the Galaxy Z Fold7, featuring a 200MP camera, enhanced AI capabilities, and a larger display.

OpenAI preparing to launch AI-powered web browser to rival Chrome

OpenAI plans to launch a new AI-powered web browser, aiming to transform the browsing experience using ChatGPT technology.

Singapore to get Huawei’s 480kW ultra-fast EV charger by the end of 2025

Huawei brings 480kW ultra-fast EV charger to Singapore by late 2025, slashing charge times and boosting support for commercial vehicles.

Samsung, Google, and Qualcomm share their vision for where mobile AI is heading

Samsung, Google, and Qualcomm share how mobile AI will become more helpful, personal, and invisible in your everyday life.

Razer unveils DeathAdder V4 Pro with pro-level features and ultra-lightweight design

Razer’s DeathAdder V4 Pro lands with 8000Hz wireless polling, a lighter design, and esports-level precision for serious gamers.

Related Articles

Popular Categories