Electric vehicle (EV) manufacturer Canoo has announced its second-quarter results, revealing a smaller-than-anticipated loss due to decreased research and development expenses. The news has triggered a 2% surge in the company’s shares during extended trading.
In addition to the financial update, Canoo introduced its latest product, the lifestyle delivery vehicle 190. This model boasts an augmented payload capacity and increased body length in comparison to its predecessor, the lifestyle delivery vehicle 130.
The recently released financial report indicated that Canoo’s loss for the second quarter was $70.9 million, a notable reduction from the $164.4 million loss reported in the same period the previous year. After adjustments, the company recorded a loss of 14 cents per share. This figure surpasses estimates, which projected a loss of 19 cents per share, according to data provided by Refinitiv.
One significant factor contributing to the improved financial picture was a substantial decrease of approximately 67% in research and development expenses during the quarter. This decrease in operating costs led to a decline in overall operating expenses, from $173.5 million in the corresponding quarter last year to $73.6 million.
The EV industry has faced a challenging market environment recently, with startups in the sector witnessing a decline in their market valuations due to decreased demand and limited funding availability within an uncertain economic climate.
Canoo reiterated its concerns regarding its ability to sustain operations for the next twelve months. As of June 30, the company reported having $5 million in cash and cash equivalents, a decrease from the $36.6 million reported at the end of December.
Looking ahead, Canoo anticipates a capital expenditure ranging from $70 million to $100 million in the latter half of 2023. The company has secured contracts with notable entities such as the U.S. Department of Defense for the supply of advanced battery packs. Additionally, Canoo has agreements with Walmart and the National Aeronautics and Space Administration (NASA) to provide electric vehicles.
Canoo’s CEO, Tony Aquila, emphasized the company’s transition into a phase of revenue and income generation. He highlighted the progress made through the Department of Defense contract and the successful delivery of vehicles to NASA.
The combination of improved financials, a new product launch, and strategic partnerships underscores Canoo’s ongoing efforts to navigate the evolving landscape of the EV market while continuing to pursue its operational goals.
