It sounds like they will have $300 million in capital coming this week?

"That PIPE investment appears to have not yet been realized. Canoo said during a call with investors Tuesday that it expected a $300 million private investment in public equity (PIPE) related to its merger to go through this week, and the company has filed a $300 million universal shelf. That $600 million is necessary to make it to start of production, Canoo CEO Tony Aquila said."

I don't think we know the extent of Wal-Mart's (and the Walton's) involvement but I imagine it's substantial

https://investorplace.com/2021/11/goev-stock-the-walmart-partnership-rumors-driving-interest-in-canoo/

I don't think we know the extent of Wal-Mart's (and the Walton's) involvement but I imagine it's substantial

The Waltons also invested $150 million in Theranos.


Canoo electric-vehicle startup had aimed to begin production this year but now says in an earnings report that there is 'substantial doubt' about its future. (https://www.caranddriver.com/news/a39967402/canoo-ev-startup-financial-trouble/)


This was supposed to be the year that American startup Canoo would start building its podlike electric Lifestyle Vehicle, but it's now looking like the project may never get fully off the ground. In its first-quarter earnings report, Canoo acknowledged that it is running out of cash, writing that "there is substantial doubt about the Company's ability to continue as a going concern."


Canoo had previously announced that it was aiming to build between 3000 and 6000 units in 2022, but we would be surprised if even one consumer-ready Canoo ever rolls off the production line.

Canoo CEO warns company could go out business before a single car is made in Pryor (https://news.yahoo.com/canoo-ceo-warns-company-could-155946217.html)

Watch the state not even land the Panasonic plant.

At least Tulsa can hang their hats on the sweet tea factory.

It was a risk in an emerging space that needs cheap credit and has too many companies chasing too few profits. Was probably worth it, but the markets have changed significantly so far in 2022.

Cheap credit dried up and many EV companies are going to be toast

This is happening everywhere. Ford sold a huge stake in Rivian. Tesla stock is way down. Lordstown is running out of cash.

Watch the state not even land the Panasonic plant.

At least Tulsa can hang their hats on the sweet tea factory.

No need for disparaging comments.

Canoo was always a risk, hoping they can pull through but I have doubts. I think Panasonic is still a strong possibility.. one would think they would have already announced Kansas as the winner if that was the case. Didn't help that our state government waited till the last minute to pass incentives.

Canoo CEO warns company could go out business before a single car is made in Pryor (https://news.yahoo.com/canoo-ceo-warns-company-could-155946217.html)

https://th.bing.com/th/id/R.fd66166b2f0de966acef1d44db68cce6?rik=3pbtRifTUcK HSw&riu=http%3a%2f%2f2.bp.blogspot.com%2f-EfUAFljXsFU%2fUqCk5l8kPiI%2fAAAAAAAABbk%2fe1krJH-QhPM%2fw1200-h630-p-k-no-nu%2fshocked%2bshocked.png&ehk=iekms%2fcOT4ANCsl5q3K5viwTloi8MgAeAbQk0BW2c2k% 3d&risl=&pid=ImgRaw&r=0

So basically it's almost time to buy when it is under a dollar.

It was a risk in an emerging space that needs cheap credit and has too many companies chasing too few profits. Was probably worth it, but the markets have changed significantly so far in 2022.

Cheap credit dried up and many EV companies are going to be toast

This is happening everywhere. Ford sold a huge stake in Rivian. Tesla stock is way down. Lordstown is running out of cash.

Tesla also was in danger of running out of cash in 2019. I see Canoo either getting a last-minute infusion from Wal-Mart or GKFF, or both, or going bankrupt and restructuring with an infusion from Wal-Mart/GKFF

https://www.theverge.com/2019/5/17/18629166/elon-musk-tesla-money-changes-cfo-employee-expenses

Tesla had product for sale at that point, not just protypes. Huge difference. Tesla was more than an idea.
Also Canoo has that open SEC investigation, probably a chilling prospect to throw more money at.

I hope they can overcome this: https://tulsaworld.com/news/local/proposed-oklahoma-employer-canoo-loses-125-million-in-first-quarter-states-misgivings-about-future/article_ff90a502-d149-11ec-b000-fbb6ed612deb.html

Remain positive. It’s a cool concept and I’ve been considering one myself though I’m leaning more towards the Hummer EV when I can afford it. They really look cool and I hope they can pull through this.

https://kfor.com/news/local/canoos-financial-woes-raise-questions-with-oklahoma-lawmakers/

The reason I posted that Car & Driver article is because they are completely respected in the auto industry and have done a fantastic job of unbiasedly covering the scores of new electric vehicle companies and the EV models by established brands. They have followed Canoo and everyone else from inception.

They have been my go-to source for reputable auto news for literally five decades. And there is no way their editors and writers are going to risk their reputation (and possible lawsuits) by writing something as emphatic as "we would be surprised if even one consumer-ready Canoo ever rolls off the production line" without being about as sure as they can be.

Rather than trying to be optimistic, I'm like the family member who was just told by the lead doctor there is no hope.

^^^ that was a Yahoo! article?

Here is a Reuters account.

Seems hard to see any light here. Even with state incentives, $15 million isn't that much dough when you have the kind of burn rate Canoo probably does. Never a good sign when the company itself raises the specter of failure.

https://www.yahoo.com/finance/news/ev-maker-canoo-substantial-doubt-235059036.html

^^^ that was a Yahoo! article?

His post right before the Yahoo link has the Car & Driver article. Post #122 to be precise.

His post right before the Yahoo link has the Car & Driver article. Post #122 to be precise.
Thank you I missed that. Pete is spot on about Car and Driver.

The Waltons also invested $150 million in Theranos.


Canoo electric-vehicle startup had aimed to begin production this year but now says in an earnings report that there is 'substantial doubt' about its future. (https://www.caranddriver.com/news/a39967402/canoo-ev-startup-financial-trouble/)

Based on the last few posts I had to go read it, and wow.

Seems hard to see any light here. Even with state incentives, $15 million isn't that much dough when you have the kind of burn rate Canoo probably does. Never a good sign when the company itself raises the specter of failure.

Canoo said they burned through $120 million in the first quarter.

In terms of the wording, it's called a "going concern warning" and it's legally required. It's basically a huge red flag for future investors and banks which obviously makes it much more difficult to raise funds.

It's to stop companies like Theranos from painting a rosy picture while soliciting more funding, when in fact they are in dire financial straights.


A going concern warning is issued by a company's management or auditors — or both — when they believe that within the upcoming 12 months from the date of the report "it is probable" the company will not have the liquidity to pay its obligations as they come due, or will violate a debt covenant.

it's hard to mentally conceptualize what one could even spend $120M on without having anything to show for it.

I was about to make that comment. It shows how little I know about economics. I was just reading an article yesterday about how Uber still isn’t profitable and spent/burned through/lost 20+ billion dollars since 2017. It’s mind boggling to me.

https://techcrunch.com/2022/05/10/canoo-warns-it-may-not-have-enough-funds-to-bring-evs-to-market/

I was about to make that comment. It shows how little I know about economics. I was just reading an article yesterday about how Uber still isn’t profitable and spent/burned through/lost 20+ billion dollars since 2017. It’s mind boggling to me.

Which they could do because the Fed had the easy money high liquidity punch bowl out.

The party is over. The Fed put the punch away.

Canoo is toast and will be one of many.

Canoo said they burned through $120 million in the first quarter.

In terms of the wording, it's called a "going concern warning" and it's legally required. It's basically a huge red flag for future investors and banks which obviously makes it much more difficult to raise funds.

It's to stop companies like Theranos from painting a rosy picture while soliciting more funding, when in fact they are in dire financial straights.

Exactly, going concerns are common statements in the financial disclosures of companies that rely on debt or equity issuance to survive until they can make a profit.

The big picture here is still concerning. Canoo is spending a ton of money without much to show for it yet. They are hemorrhaging senior staff and changing plans all the time. Now it seems they are focused on some sort of Arkansas plant to get production started this year. Supposedly they have a cash runway of $600 million to get them to production, but then how much revenue are they really going to make by end of year? A few thousand units isn't a huge amount of revenue considering the costs involved, and it seems doubtful they'll really produce at least 3 thousand units this year like they hoped.

And where did that $120 million go? I haven't read through their financial statements yet, but hopefully most of that was one-time equipment expenditures for their plants.

More info here on their funding availability and production plans:
https://www.caranddriver.com/news/a39967402/canoo-ev-startup-financial-trouble/

it's hard to mentally conceptualize what one could even spend $120M on without having anything to show for it.

Probably some bonus pay passed around.

The reason I posted that Car & Driver article is because they are completely respected in the auto industry and have done a fantastic job of unbiasedly covering the scores of new electric vehicle companies and the EV models by established brands. They have followed Canoo and everyone else from inception.

They have been my go-to source for reputable auto news for literally five decades. And there is no way their editors and writers are going to risk their reputation (and possible lawsuits) by writing something as emphatic as "we would be surprised if even one consumer-ready Canoo ever rolls off the production line" without being about as sure as they can be.

Rather than trying to be optimistic, I'm like the family member who was just told by the lead doctor there is no hope.

Have to give you credit. You called it from the beginning. Hopefully it still works out but definitely disappointing.

Have to give you credit. You called it from the beginning. Hopefully it still works out but definitely disappointing.

I just follow this stuff very closely and have always deeply loved cars and the auto industry.

Car and Driver does a fantastic job of covering the business side of all these upstarts and they have a bunch of really smart and well-informed writers. Motor Trend and CNET Roadshow as well, just to a lesser extent.

(A bit of disclosure: My dad was a regional sales manager for a big periodical distribution company, so we received advance copies of almost all magazines. I got hooked on car mags around age 10.)


Of course I hope things work out for Canoo; despite the Oklahoma connection you just want to see people who take big risks rewarded. But you also have to educate yourself on the realities.

Exactly, going concerns are common statements in the financial disclosures of companies that rely on debt or equity issuance to survive until they can make a profit.

The big picture here is still concerning. Canoo is spending a ton of money without much to show for it yet. They are hemorrhaging senior staff and changing plans all the time. Now it seems they are focused on some sort of Arkansas plant to get production started this year. Supposedly they have a cash runway of $600 million to get them to production, but then how much revenue are they really going to make by end of year? A few thousand units isn't a huge amount of revenue considering the costs involved, and it seems doubtful they'll really produce at least 3 thousand units this year like they hoped.

And where did that $120 million go? I haven't read through their financial statements yet, but hopefully most of that was one-time equipment expenditures for their plants.

More info here on their funding availability and production plans:
https://www.caranddriver.com/news/a39967402/canoo-ev-startup-financial-trouble/

You have any idea how hard it is to engineer a car from scratch?

Apple rumored to be interested in acquiring Canoo

https://www.notebookcheck.net/Apple-looks-to-acquire-the-start-up-Canoo-to-bolster-its-e-vehicle-division.619827.0.html

Makes sense, both names have five letters. It's a clear match.

Apple rumored to be interested in acquiring Canoo

https://www.notebookcheck.net/Apple-looks-to-acquire-the-start-up-Canoo-to-bolster-its-e-vehicle-division.619827.0.html

probably means they just move the engineers to their other facilities and still means nothing gets built in Oklahoma. hope i'm wrong, but that is how i imagine it working out

EDIT: lol read the article after i posted. and it pretty much says the same thing i did, that Apple probably wants to do it to just get more tech and engineers for it's existing work

So would Apple get the incentives the state has promised Canoo or would an acquisition invalidate that?

probably means they just move the engineers to their other facilities and still means nothing gets built in Oklahoma. hope i'm wrong, but that is how i imagine it working out

EDIT: lol read the article after i posted. and it pretty much says the same thing i did, that Apple probably wants to do it to just get more tech and engineers for it's existing work

That's a distinct possibility. They also could utilize the Pryor manufacturing plant (where sitework has already started) to get their cars to market faster, in addition to tapping into the numerous incentives offered. IF Panasonic builds their battery plant at Mid-America it would make sense to locate the manufacturing nearby.

I definitely wouldn't assume that Apple would want to build those ugly canoo cars, but if they did want to start production on something in the near future I'd hope that means OK has an in with them. Obviously OK is willing to do major deals, and companies see the value in the MidAmerican Industrial Park area. Having Apple and Panasonic working in the area would be huge. Even just one of those becoming reality would be huge.

https://inhabitat.com/nasa-contracts-canoo-to-design-new-ev-for-artemis-astronauts/

I definitely wouldn't assume that Apple would want to build those ugly canoo cars, but if they did want to start production on something in the near future I'd hope that means OK has an in with them. Obviously OK is willing to do major deals, and companies see the value in the MidAmerican Industrial Park area. Having Apple and Panasonic working in the area would be huge. Even just one of those becoming reality would be huge.

I love the way those vehicles look!

I love the way those vehicles look!
I do too.

https://jalopnik.com/canoo-ceo-reports-of-our-death-are-greatly-exaggerated-1848941486

https://tulsaworld.com/business/local/canoos-proposed-electric-vehicle-plant-in-pryor-on-hold-industrial-park-head-says/article_4421c660-f896-11ec-945c-93628edd01aa.html

There is life! Walmart agrees to buy 4,500 of their vans.

https://www.cnbc.com/amp/2022/07/12/canoo-walmart-deal-for-4500-vans-sends-ev-stock-jumping.html

There is life! Walmart agrees to buy 4,500 of their vans.

https://www.cnbc.com/amp/2022/07/12/canoo-walmart-deal-for-4500-vans-sends-ev-stock-jumping.html

Makes sense with the HQ move to Bentonville. Whatever it takes to keep them afloat and get the Oklahoma plant up and running.

There is life! Walmart agrees to buy 4,500 of their vans.

https://www.cnbc.com/amp/2022/07/12/canoo-walmart-deal-for-4500-vans-sends-ev-stock-jumping.html

Makes sense with the HQ move to Bentonville. Whatever it takes to keep them afloat and get the Oklahoma plant up and running.

Great news for them. I was wrong, they can avoid bankruptcy now.

Exactly what they needed.

If Walmart is getting into local delivery, this was a solid move for them especially if gas prices remain high.

Hopefully Canoo can get more commitments like this and the NASA deal (obviously the Walmart one is much more important). If they can, they’ll be in good shape to at least get up and running and get there product to market.

Apparently Wally made some conditions as well as safe guards with this purchase that was revealed yesterday.

https://electrek.co/2022/07/13/canoo-walmart-stock/
July 13 update: Upon inspection of Canoo’s official 8-K filing with the SEC, there is some fine print we were unaware of when news of the purchase agreement went live yesterday. According to the terms of the EV purchase agreement, a Warrant Issuance Agreement was also included, giving Walmart the option to exercise the purchase of of 61,160,011 shares of fully paid and non-assessable shares of the Canoo’s common stock at a price of $2.15 per share. Per the filing:

The Warrant has a term of ten years and is vested immediately with respect to 15,290,003 shares of Common Stock. Thereafter, subject to the stockholder approval described below, if applicable, the Warrant will vest quarterly in amounts proportionate with the net revenue realized by the Company and its affiliates from transactions with Walmart or its affiliates under the EV Fleet Purchase Agreement or enabled by any other agreement between the Company and Walmart, and any net revenue attributable to any products or services offered by Walmart or its affiliates related to the Company or its affiliates, until such net revenue equals $300 million, at which time the Warrant will have vested fully.

Under the Warrant Agreement, the Company shall, as promptly as reasonably practicable following the date of the Warrant Agreement and, in any event, no later than the Company’s 2023 annual meeting of stockholders, convene and hold a meeting of stockholders to consider and vote on the issuance of the Warrant in respect of any shares of Common Stock in excess of 53,852,492 shares (which represents more than 20% of the Company’s outstanding Common Stock as of the date of the Warrant Agreement), pursuant to the applicable rules of the NASDAQ Global Select Market. In the event that stockholder approval is not obtained, in lieu of any shares which would have been issued to Walmart, the Company is required to pay to Walmart an amount in cash equal to the product of: (i) the excess of (x) the 30-day volume weighted average price per share as of the day immediately preceding the applicable exercise date and (y) the exercise price, times (ii) the number of shares that would have been issued at such applicable exercise date if stockholder approval had been obtained.

Should it exercise its warrants, Walmart can receive common stock equal to 20% of the company, a possible hint that Canoo was running out of options when it made the deal. Neither company has offered a comment on this agreement, nor has Walmart exercised its warranted shares yet.

We also noticed that under the terms of the purchase agreement with Walmart, Canoo must refrain from any business whatsoever with Amazon or its subsidiaries. Understandable. See below:

Under the EV Fleet Purchase Agreement, the Company has agreed that, for the duration of the agreement, it will not enter into any agreement for any services involving the design, manufacture, consult, advice, lease, or sale of EVs to, or issue any equity, equity-linked or debt securities of any type, or enter into any agreement for the purpose of transferring control of the Company to, Amazon.com, Inc., its subsidiaries, or affiliates.

I'd be much more optimistic about Canoo being anything other than vaporware if Walmart strong-arms them into being their own personal electric vehicle manufacturer, which rather looks like what is happening.

It sounds like Walmart can easily take them over if they don't like the way things are going.

This is probably the best development that could be hoped for considering the company's recent parade of bad news.

Back in college, I drove a Honda Element. The Canoo car designs are reminiscent of what I liked about that car. And if they keep their pricepoint around $35K and can do it profitably, they're going to be very successful and I'll likely be a customer.

More news. Canoo to make one vehicle for the US army. Better than zero I guess!

https://electrek.co/2022/07/14/canoo-us-army/amp/

This is not a good look going forward.
Reported yesterday on Tulsa 6.
The company lost millions in 2nd q

https://www.newson6.com/story/62f1d32a0540dc072b7e2774/canoo-reports-millions-of-dollars-in-losses-for-2nd-quarter

^Once again though, they haven't made it to the revenue generating stage yet. They are going to be showing losses for a long time. This is "normal" for this kind of company during the start up stage. Uber still hasn't posted a profit yet to my knowledge. Amazon took a long time to post profits, IIRC.

That's not to say they aren't on shaky ground, as most startups of this nature run out of money before they can start generating serious revenue. It's just that it's not as bad a "look" as you might think. If they can get any amount of production going this year, they can limp forward.

^Once again though, they haven't made it to the revenue generating stage yet. They are going to be showing losses for a long time. This is "normal" for this kind of company during the start up stage. Uber still hasn't posted a profit yet to my knowledge. Amazon took a long time to post profits, IIRC.

That's not to say they aren't on shaky ground, as most startups of this nature run out of money before they can start generating serious revenue. It's just that it's not as bad a "look" as you might think. If they can get any amount of production going this year, they can limp forward.

They should be fine. Especially with the investment by Wal-Mart and their fleet committments once they are producing vehicles.

Also, if you've looked at some of their vehicles, if their suggested price remains the same, they are some ridiculously utilitarian vehicles with a ton of cool uses. Their pickup truck is pretty awesome.

So it's not weird that they are outsourcing the build of the promised vehicles for walmart? I have no idea, legit question.

They should be fine. Especially with the investment by Wal-Mart and their fleet committments once they are producing vehicles.

Also, if you've looked at some of their vehicles, if their suggested price remains the same, they are some ridiculously utilitarian vehicles with a ton of cool uses. Their pickup truck is pretty awesome.

initially I thought they were pretty ugly but I’ll admit they're growing on me. Perfect cars for a local delivery fleets like Walmart seems to want to use them for.

So it's not weird that they are outsourcing the build of the promised vehicles for walmart? I have no idea, legit question.

Would seem to make sense if they don’t have a plant up and running yet.

^Once again though, they haven't made it to the revenue generating stage yet. They are going to be showing losses for a long time. This is "normal" for this kind of company during the start up stage. Uber still hasn't posted a profit yet to my knowledge. Amazon took a long time to post profits, IIRC.

That's not to say they aren't on shaky ground, as most startups of this nature run out of money before they can start generating serious revenue. It's just that it's not as bad a "look" as you might think. If they can get any amount of production going this year, they can limp forward.

Thanks.

They recently showcased some of their vehicle prototypes at the State Capitol in OKC

https://media-exp1.licdn.com/dms/image/C5622AQE-uyJuMmTqZg/feedshare-shrink_2048_1536/0/1660748436533?e=1663804800&v=beta&t=bcm2qHo5VKfGd8Eh5EN2Zml9YukxVnu5S3Ghrn91tV0

Hitting the road.
Canoo LDVs take flight for Walmart InHome advanced deliveries
https://electrek.co/2022/08/23/canoo-ldvs-take-flight-walmart-inhome-deliveries/

Some not so good news again: https://fortune.com/2022/08/29/canoo-ev-startup-scored-deal-worlds-largest-retailer/

The Canoo shares are trading for around $3.25 right now. I purchased some with a little bit of fun I have for stuff like this. It could all go to sh!t or in a few years take off like Tesla, who knows?

The Canoo shares are trading for around $3.25 right now. I purchased some with a little bit of fun I have for stuff like this. It could all go to sh!t or in a few years take off like Tesla, who knows?

Yes they need to raise capital by diluting shares, but they don't have the meme-hype and bull market that Tesla took advantage of. Tesla stock is a unicorn.