Canoo, the electric vehicle (EV) startup, achieved a significant milestone in the third quarter by delivering its first EV manufactured at its new factory in Oklahoma. Canoo CEO, Tony Aquila, expressed his excitement about entering the manufacturing and revenue-generation phase. The company’s innovative approach to design and production has allowed them to start generating revenue, marking a major breakthrough after nearly three years of hard work.
The opening of Canoo’s Oklahoma facility also signifies the revival of commercial motor vehicle production in the state, which had not taken place since 2006. As part of an agreement with the state, Canoo plans to deliver up to 1,000 vehicles, showcasing their commitment to the local community and the growth of the EV market. These positive developments follow the successful delivery of Canoo’s first three vehicles to NASA in July, which already contributed to the company’s revenue.
While celebrating these achievements, Canoo’s leader emphasized the importance of continuous progress. With a target to achieve an annual unit capacity of 20,000, the company acknowledges that there are still challenges ahead. Consequently, Canoo plans to reduce spending, aiming for an EBITDA loss of $85M to $105M in the second half of 2023. Capital spending will also be adjusted to $30M to $40M instead of the initial projection of $70M to $100M.
Regarding financials, Canoo reported revenue of $519M from the sale of its first EV, with losses narrowing to $112M in Q3 compared to the previous year. The company’s net losses for the year reached $273.6M through September. Despite these losses, Canoo ended the quarter with $8.3M in cash and equivalents, a positive indication of their financial stability.
In addition to these accomplishments, Canoo also unveiled its “American Bulldog” electric pickup truck last week, showcasing their commitment to American innovation and paying tribute to the country’s pioneering spirit.
Canoo’s approach aligns with the Commercial Clean Vehicle Tax Credit offered by the Internal Revenue Service (IRS), providing customers with tax credits of up to $7,500. This “Made in America” strategy positions Canoo to benefit from the growing demand for clean vehicles while incentivizing buyers.
While the third quarter brought about positive developments, Canoo faces challenges ahead, especially with the current economic outlook. However, with their determination and focus on growth, Canoo is poised to overcome these obstacles and continue making waves in the EV industry.