Canoo, the EV startup that made headlines in 2020 as it went public, has released its Q4 earnings report, marking a crucial moment for the company as it moves into its next phase of development. The report revealed that after reaching a settlement with the SEC over an investigation into the company’s merger with SPAC Hennessy Capital Acquisition Corp, Canoo is now in a position to access new funding opportunities.
The EV maker has experienced its fair share of highs and lows since its foundation in 2017. After the excitement surrounding its IPO, the hype soon faded. In April 2021, the SEC opened an investigation into Canoo’s revenue projections, part of a broader investigation into several popular EV stocks. Canoo later announced that it had revised its projections to zero after eliminating engineering services as a potential revenue stream.
After a long-awaited battle, Canoo has now reached the end of the SEC investigation, agreeing to pay a $1.5 million settlement. With this matter and other “legacy matters” behind it, Canoo is now looking forward to the next stage of its EV rollout.
Canoo’s Q4 earnings report included several exciting developments, such as the delivery of its Light Tactical Vehicle to the US Army and a new distributor partnership with GCC Olayan in Saudi Arabia. However, the company still didn’t generate any revenue in the quarter, ending with a net loss of $80.2 million.
Canoo’s CFO, Ken Magnet, announced that the company is exploring a range of diversified funding sources, including the Department of Energy’s loan program. With the SEC investigation now concluded, the company is in a better position to access funding and move forward with its plans for growth and development.
Looking ahead, Canoo expects to incur operating expenses of between $55 million to $70 million and CAPEX of between $30 million to $45 million in the first quarter of 2023. CEO Tony Aquila says that the company’s next phase will be more focused on milestones, lowering costs and making more efficient use of capital. Canoo is also set to benefit from the IRA bill with domestic production, as it begins the first phase of SOP in Michigan and kicks off phase two in OKC, including the launch of an EV battery module manufacturing plant in Oklahoma.
As Canoo moves into this new phase of development, it will be interesting to see how the company capitalizes on the opportunities ahead and establishes itself in the ever-growing EV market.
