Canoo, the electric vehicle startup, has seen key executive departures as it continues to grapple with financial challenges and struggles to gain mass adoption of its electric work vans. The company’s chief financial officer (CFO) Greg Ethridge and general counsel Hector Ruiz both resigned on October 31, 2024, according to a regulatory filing submitted by Canoo. Neither Ethridge nor Ruiz responded to requests for comment.
The company also announced the furlough of 30 workers at its Oklahoma facility for 12 weeks, marking part of a broader realignment of its North American operations. Ethridge’s position has been filled by Kunal Bhalla, a former investment banker and the company’s chief of staff to CEO Tony Aquila. Bhalla will receive a base salary of $300,000. Sean Yan, formerly associate general counsel, has been appointed to replace Ruiz.
These resignations follow a series of other notable executive departures, including the closure of Canoo’s original headquarters in Los Angeles and the exit of its chief technology officer and last remaining co-founder. The company’s shift in focus has led to the relocation of its operations to Texas and Oklahoma.
Canoo has been facing mounting financial pressure, with only $19 million in total cash as of June 30, 2024, of which $4.5 million was unrestricted. In October, the company revealed in a regulatory filing that a fund associated with CEO Aquila had loaned the startup $1.2 million at an 11% interest rate, and just days ago, the company borrowed an additional $2.7 million from the same fund. Canoo has also entered into a revolving credit facility with Aquila’s fund.
The company is also embroiled in multiple lawsuits from suppliers alleging unpaid bills, including a new lawsuit filed by Kistler Instrument Corporation in Los Angeles Superior Court seeking $56,000 in damages. These ongoing financial and legal issues continue to cloud Canoo’s future as it strives to find stability in a competitive EV market.
Source: TechCrunch
