Struggling Electric Vehicle Startup Canoo Files for Bankruptcy
Canoo, a once-promising electric vehicle startup, has officially filed for Chapter 7 bankruptcy and ceased all operations. The decision was announced on Jan. 17 in the U.S. Bankruptcy Court for Delaware, marking the end of Canoo’s journey in the automotive industry.
The bankruptcy filing comes after Canoo’s unsuccessful attempts to secure additional funding from a Department of Energy loan program and foreign investors. Despite going public four years ago and raising $600 million, the company faced challenges in developing and manufacturing new vehicles, leading to its search for alternative funding sources.
Canoo Lifestyle Vehicle
Canoo had received substantial orders from customers like Walmart but struggled to deliver vehicles at scale. The company focused on electric vans and also developed prototype pickup-truck designs, with limited production and delivery to entities such as NASA and the U.S. Postal Service.
According to reports, Canoo owes approximately $164 million to creditors while holding assets valued at $126 million. The startup had previously furloughed employees and idled its assembly facility in Oklahoma before ultimately filing for bankruptcy.
Canoo American Bulldog
Founded in 2017 as Evelozcity by former Faraday Future executives, Canoo underwent a change in direction under CEO Tony Aquila, shifting focus from van-like EVs to commercial vehicles and government contracts. Despite production plans with VDL in the Netherlands being canceled, Canoo continued to adapt its strategy, eventually moving its operations to Arkansas and Texas.