Canoo faced a challenging first quarter, posting a larger-than-expected loss. The company, however, maintained its outlook for the year. Factors such as slowing demand in the United States and fierce competition from Chinese EV makers have impacted Canoo and other companies in the EV space.
Fisker raised concerns about its ability to continue operations in February. This was followed by the delisting of its stock from the New York Stock Exchange and the collapse of talks with a major automaker in March. Canoo had previously expressed doubts about its ability to continue as a going concern in 2022 and has been actively raising capital to support its production.
Canoo reported a net loss of $110.7 million for the quarter ended March 31, compared to $90.7 million in the same quarter last year. Analysts had anticipated a loss of $55.2 million on average, according to LSEG data.
Despite the challenging environment, Canoo managed to reduce its research and development expenses by about 44%, leading to a decrease in operating expenses to $62.6 million from $81.5 million year-over-year. The company’s cash and cash equivalents also saw an increase, standing at $18.2 million as of March 31, up from $6.4 million at the end of December last year.
Canoo, based in Texas, went public in 2020 through a reverse merger with a special purpose acquisition company. The company supplies electric delivery vans to Walmart and crew transportation vehicles to NASA.
