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Electric vehicle startup Canoo files for bankruptcy, ceases operations

Filing comes weeks after Canoo furloughed remaining workers and idled Oklahoma factory

(Photo: Canoo)

The medium-duty electric vehicle space continues to get smaller. Seven-year-old electric vehicle startup Canoo has filed Chapter 7 bankruptcy and announced an immediate halt to operations. A press release noted the liquidation process is being overseen by a bankruptcy trustee in the Delaware Bankruptcy Court.

Canoo Inc., once listed on the Nasdaq Composite under the ticker symbol GOEV, was a notable player in the EV market, particularly in the electric cargo segment. Despite its partnerships with NASA, the Department of Defense, the U.S. Postal Service, the state of Oklahoma, Walmart and other groups, the company struggled to secure the financial backing to sustain operations.

The bankruptcy filing cites unsuccessful attempts to get financing from the U.S. Department of Energy’s Loan Program Office as a significant factor leading to Canoo’s insolvency. Nor did efforts to obtain capital from foreign sources stave off bankruptcy. Canoo had total liabilities exceeding $164 million against approximately $126 million in assets.

“We would like to thank the company’s employees for their dedication and hard work,” said Chairman and CEO Tony Aquila. “We know that you believed in our company as we did. We are truly disappointed that things turned out as they did. We would also like to thank NASA, the Department of Defense, The United States Postal Service (‘USPS’), the State of Oklahoma and Walmart for their belief in our products and our company. This means a lot to everyone in the company.”


Leading up to the bankruptcy, Canoo faced numerous challenges that compounded its financial instability. In the final months before the filing, the company furloughed its remaining employees and idled its factory in Oklahoma City. Despite having agreements to deliver electric vans to high-profile clients, Canoo struggled to ramp up production and secure broader market adoption. The company’s third-quarter financial reports revealed a persistent net loss, with a GAAP net loss of $112 million for the nine months ended Sept. 30, 2024, compared to $273 million in the same period in the previous year.

Executive departures and strategic pivots further aggravated operational struggles. In October, CFO Greg Ethridge and general counsel Hector Ruiz resigned, replaced by internal promotions. Under Aquila’s leadership, Canoo pivoted its focus from consumer sales to commercial fleets, which involved multiple shifts in production strategies and operational realignments. These changes increased operational costs and diminished investor confidence.

Financial mismanagement also played a role in Canoo’s demise. Regulatory filings indicated that the company borrowed substantial funds from Aquila’s financial firm, including a loan of approximately $1.2 million at an 11% interest rate and an additional $2.7 million later. These loans were secured by assets located at Canoo’s Oklahoma City facility, placing additional strain on the company. Furthermore, Canoo’s attempts to adhere to Nasdaq’s listing requirements through a reverse stock split were insufficient to reverse its financial trajectory.

The company’s liquidation process involves a bankruptcy trustee managing the sale of Canoo’s assets to repay creditors. Stakeholders, including employees, suppliers and investors, stand to receive proceeds from the asset liquidation based on their claims. Canoo’s decision to enter Chapter 7 reflects the company’s inability to restructure its debt and continue operations.


Canoo’s bankruptcy reflects broader trends and challenges within the EV industry. The market is witnessing a series of failures among startups, particularly those that went public through mergers with special purpose acquisition companies. Companies like Electric Last Mile Solutions, Fisker, Lordstown Motors, Proterra, Lion Electric have all faced struggles from bankruptcies to reorganizations in recent years. Arrival sold its assets to Canoo last March

For the EV startup ecosystem, where substantial capital is required to develop technology, scale production and achieve market penetration amid intense competition and high operational costs, volatility has been a recurring theme.

The liquidation of Canoo’s assets will likely have ripple effects across its supply chain and partnerships. Suppliers are already filing lawsuits over unpaid bills, with Kistler Instrument Corp. seeking $56,000 in damages. In Walmart’s case, the halt to operations is not expected to be an issue because the deal was a nonbinding agreement to purchase thousands of EVs.

The liquidation of Canoo may present opportunities for asset acquisition by other players in the EV market. Canoo had developed innovative technologies, including steer-by-wire systems and modular vehicle platforms, which could be valuable assets for competitors looking to enhance their technological capabilities.

Thomas Wasson

Based in Chattanooga TN, Thomas is an Enterprise Trucking Carrier Expert at FreightWaves with a focus on news commentary, analysis and trucking insights. Before that, he worked at a digital trucking startup aifleet, Arrive Logistics as an Account Executive, and 5 years at U.S. Xpress Enterprises Inc. with an emphasis on fleet management, load planning, freight analysis, and truckload network design. He graduated from the University of Tennessee Chattanooga with a MBA in 2020 and a Bachelors of Political Science from the University of Tennessee Knoxville in 2013.