Canoo, the electric vehicle startup founded in 2017, has reached the end of its road. The company announced on Friday that it has filed for Chapter 7 bankruptcy, marking the immediate shutdown of its operations. Despite its ambitious goals to revolutionize the EV industry and high-profile agreements with the U.S. Postal Service (USPS), NASA, and the Department of Defense, Canoo ultimately failed to deliver on its commitments.
The signs of trouble had been mounting for months. Over the last year, Canoo’s shares lost a staggering 98.22% of their value. In early November, the company revealed it had only $700,000 in cash and cash equivalents. To stay afloat, it implemented three rounds of 12-week furloughs, impacting most of its workforce, and shut down its vehicle and battery plants in Oklahoma. CEO Tony Aquila admitted at the time that the coming months would be “very tough” but remained hopeful about moving up production by 2025. That hope, however, proved short-lived.
In a last-ditch effort to secure funding, Canoo reached out to the U.S. Department of Energy’s Loan Program Office but was unable to secure the necessary support. The company also explored foreign investment opportunities and even teased a potential expansion into the UK market through a partnership with Royal Mail. Unfortunately, none of these efforts materialized into the financial lifeline the company desperately needed.
With no viable options remaining, Canoo’s board made the difficult decision to file for insolvency. In a statement, the company expressed its deep disappointment in the outcome. CEO Tony Aquila thanked employees for their dedication, acknowledging the belief and effort they had poured into the company. He also extended gratitude to partners like NASA, the Department of Defense, USPS, the State of Oklahoma, and Walmart for their support, saying, “This means a lot to everyone in the company.”
Canoo’s collapse serves as a sobering reminder of the challenges faced by startups in the highly competitive and capital-intensive EV industry. While the company had bold ideas and secured significant partnerships, it ultimately struggled to execute and scale. As the EV market continues to evolve, Canoo’s story highlights the critical importance of strong financial backing and operational resilience for success.
