Canoo, American EV Automaker, to File for Bankruptcy

Canoo, a new wave American automaker, recently announced that it would file for bankruptcy and cease operations immediately. The company stated that its executives were in negotiations with foreign capital sources, however these efforts have been unsuccessful leading the board to make the difficult decision to file for bankruptcy.

Canoo has faced scrutiny over false claims of manufacturing electric vehicles (EVs) in Oklahoma. Employees have reported that no EVs were actually being produced at the facility mentioned by Canoo; instead, the company had claimed that vehicles were being assembled by another company but only modified with vinyl wraps. Canoo was originally founded as Evelozcity in 2017 by its CEO and CFO who previously held positions at Faraday Future; they offered an array of EV models including MPVs, pick-up trucks, sedans, and LDVs. Although initially funded by Chinese investment plans were underway to enter both American and Chinese markets.

In total during Q1-Q3 of last year Canoo incurred USD$$112 million in losses according to reports released internally within the company last December which also showed that all employees were placed on "mandatory unpaid leave" until at least December this year's end.

Furthermore on November 14th last year Canoo disclosed information indicating they had only $$700k remaining in their bank accounts.