Californian electric vehicle (EV) startup Canoo has recently come under the spotlight for its 2023 full-year earnings report, revealing that the company spent double its annual revenue on CEO Tony Aquila’s private jet.
In 2023, Canoo reportedly paid $1.7 million for the use of Aquila’s private jet, while the company’s revenue for the same year amounted to $886,000. This expenditure is in addition to another $1.7 million paid to Aquila Family Ventures, an entity owned by Canoo’s CEO, for “aircraft reimbursements.” Similar amounts were also spent in 2021 and 2022 for shared services support in corporate office facilities in Justin, Texas.
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Despite recent positive developments such as taking over production equipment from the insolvent British EV developer Arrival, securing a deal with the US Postal Service, and receiving an order for 550 shuttles from an LA-based provider, Canoo’s financial filings have raised concerns on Wall Street.
The US Securities and Exchange Commission (SEC) highlighted Canoo’s financial challenges, stating that while the company looks to stay in business, it has “suffered recurring losses from operations, has a working capital deficit, has generated recurring negative cash flows from operating activities, and expects to continue to incur net losses, a working capital deficit and negative cash flows from operating activities in accordance with its ongoing activities. These matters raise substantial doubt about the Company’s ability to continue as a going concern.”
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This isn’t the first time Canoo has faced scrutiny from the SEC. In August 2023, the company was fined $1.5 million for allegedly misleading investors during its IPO. Former CEO Ulrich Kranz also faced personal consequences, being barred from working as an officer or director of a listed company for three years.
