Electric Vehicle Startup Canoo Files Bankruptcy

 

Canoo Inc., an electric vehicle (EV) startup, has filed for Chapter 7 bankruptcy and will immediately cease operations.

The filing, submitted to the U.S. Bankruptcy Court for Delaware, initiates the liquidation of the company's assets, with a court-appointed trustee overseeing the process.

The decision follows Canoo's unsuccessful attempts to secure financial support from the U.S. Department of Energy's Loan Programs Office and foreign investors.

Despite previous collaborations with organizations such as NASA, the Department of Defense, the United States Postal Service, the State of Oklahoma, and agreements with Walmart, the company faced significant financial challenges.

In December 2024, Canoo idled its Oklahoma operations and placed employees on unpaid leave, signaling financial distress.

The company had been dealing with rapid cash burn and struggled to raise additional funding amid uncertain demand for its microbus-inspired cargo vans.

Tony Aquila, Canoo's Chairman and CEO, expressed disappointment, stating, "We are truly disappointed that things turned out as they did."

The company's assets, estimated at $126 million, are overshadowed by liabilities exceeding $164 million.

The bankruptcy filing marks the end of Canoo's efforts to establish itself in the competitive EV market, highlighting the challenges faced by startups in securing sustainable funding and market demand.