Canoo CEO to Buy Assets After Bankruptcy, No Revival Expected

Modular electric vehicle startup Canoo has faced significant struggles in recent years, and it seems its journey may be nearing its end. CEO Anthony Aquila is poised to purchase the bankrupt company’s assets at a fraction of the cost, a typical outcome in such situations.

Bankruptcy Filing and Ceasing Operations

The company filed for Chapter 7 bankruptcy in January and ceased operations after failing to secure funding from both a U.S. government program and unnamed investors.

A month earlier, Canoo had laid off several employees and placed many others on a “mandatory unpaid break.” Despite raising $595 million since its inception in 2017 and securing $2 billion in orders, Canoo had only produced a total of 19 vehicles.

TechCrunch’s Sean O’Kane, who has been closely following Canoo’s progress, reported that Aquila made an offer to buy nearly all of the company’s assets for just $4 million in cash. Canoo has assets worth $145 million and $12 million in cash, making the purchase look like a good deal. However, with liabilities totaling $175 million, it’s clear that the situation is far from ideal.

It’s unfortunate because Canoo did have promising potential. The company’s modular platform allowed for various vehicle types, including a people-mover, pickup trucks, cargo vans, and even a specialized vehicle for NASA.

Production Inefficiencies and Investment Struggles

Ultimately, Canoo’s downfall appears to stem from production inefficiencies and challenges attracting investors.

The Trump administration’s lack of enthusiasm for supporting electric vehicle infrastructure also didn’t help. Just a month ago, the government suspended a $5 billion program designed to help states deploy charging stations. Additionally, the General Services Administration recently announced it would shut down 8,000 EV chargers at federal buildings and sell off new EVs from government fleets.

Had Canoo managed to survive into 2025, it would have likely faced the brunt of these EV-related cutbacks, despite securing contracts with NASA, the U.S. Postal Service, and the Department of Defense.

As O’Kane points out, things don’t look promising for the company, even with Aquila stepping in to acquire its assets. Although Aquila hasn’t clarified his intentions, O’Kane notes that similar deals in the EV sector typically lead to companies dismantling and selling off their parts.

Richard Kim’s Next Move

On a personal note, I’m curious to see where Canoo’s chief designer, Richard Kim, lands next. After shaping the BMW i3 and i8, Kim joined Canoo and is now part of Persona AI, a robotics company focused on building “the world’s toughest humanoid.

We have reached out to Anthony Aquila for comment and will update this post if we receive a response.

Read the original article on: New Atlas

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