Canoo’s Crisis Deepens: EV Startup Furloughs Staff, Halts Factory Plans Amid Financial Woes

Electric Vehicle Startup Canoo Faces Financial Turmoil, Furloughs 82 Employees

Canoo, the embattled electric vehicle startup, has announced the furlough of 82 employees and the suspension of operations at its Oklahoma factory as it grapples with severe financial difficulties. The company reports being in “advanced discussions with various capital sources” to secure emergency funding.

This latest setback comes amid a series of leadership changes and departures at Canoo. Board member James Chen recently resigned, following the exit of the company’s chief financial officer and head lawyer approximately a month ago. The chief technology officer departed in August, and all of the company’s founders have since left the organization.

Compounding its troubles, Canoo is currently embroiled in multiple lawsuits from suppliers alleging late payments. The company has already undergone several rounds of layoffs and furloughs this year and recently closed its Los Angeles office, which previously served as its headquarters.

Despite these challenges, Canoo has managed to stay afloat through loans from a venture firm run by CEO Tony Aquila. The company has made some progress, delivering electric vans to NASA, USPS, Walmart, and the Department of Defense for testing. However, it has struggled to expand manufacturing capabilities for other commercial clients.

It remains unclear what products were being manufactured at the Oklahoma facility before operations were paused. In a statement, Canoo expressed regret over the furloughs, particularly during the holiday season, but remains hopeful about bringing employees back soon. CEO Tony Aquila has not provided additional comments on the situation.

As Canoo navigates these financial and operational challenges, the future of the electric vehicle startup hangs in the balance, with its ability to secure new funding likely determining its path forward.