Losses continue for Canoo
by August 14, 2024 4:07 pm 466 views
Canoo, the electric vehicle maker that has abandoned plans to build a headquarters in Bentonville, continues to bleed money. The company posted a second quarter loss of $6.037 million, which was much better than the $70.87 million loss in the same quarter of 2023.
The Justin, Texas.-based company posted second quarter revenue of $605,000. The company had total revenue of $886,000 in 2023, and posted no revenue in 2022.
The net income loss in the first half of the year was $117.586 million, better than the loss of $171.602 million in the same period of 2022. The company ended the second quarter with $19.096 million in cash and cash equivalents.
“This quarter represented good progress with US and international customers completing pilots and testing. We are focused on left-hand drive and right-hand drive large fleet customers and finalizing their configurations,” Tony Aquila, investor, executive chairman and CEO, said in the statement. “This demonstrates our platform’s versatility and stability, a result of more than 34,000 recent real world, industrial use customer miles.”
The company cited several improvements in the quarter, including a 33% reduction in operating expenses, a $39 million reduction in cash outflow, having its Oklahoma City site approved for activation in a Foreign Trade Zone, and relocating its headquarters from California to Texas. The company was previously based in Torrance, Calif.
The company said it is closing its California site and offering relocation to Texas to 137 of the 194 employees in California.
The company announced in July 2022 that it secured a deal with Walmart for 4,500 electric delivery vehicles, with an option to boost the deal to 10,000 deliveries. But that deal never materialized. Officials with Canoo at the time said they planned to build a corporate headquarters and a manufacturing facility in Bentonville.
Company shares closed Wednesday at $1.41, down nine cents. During the past 52 weeks the share price ranged between $15.96 and $1.22. The company’s market capitalization was $104.183 million as of Wednesday.