As more and more drivers around the world invest in electric vehicles, both existing automakers and startups have vied to get their share of a growing market. Some recently-created companies have found financial stability or long-term partnerships with longer-tenured automakers, while others have faced a more uncertain future.
Unfortunately for the EV startup Canoo, their destination seems to be in the latter camp; earlier this month, the company announced that it was entering Chapter 7 bankruptcy. As per the company’s announcement, this will involve “the liquidation of the Company’s assets and the distribution of proceeds to creditors.”
Canoo cited a number of factors as contributing to this decision, including issues getting a loan from the Department of Energy and negotiations with foreign investors that didn’t pan out.
“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,” said Canoo CEO Tony Aquila. “This means a lot to everyone in the company.” Aquila also thanked Canoo’s employees for “[believing] in our company as we did.”
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Some familiar names dominated the marketAs Autoblog’s Larry Printz pointed out, Canoo accomplished more than many startups, including successfully producing vehicles. Printz’s reporting also cites a few potential missed opportunities, including a planned partnership with Hyundai that never came to fruition. But this sad news also raises another question: will future EV manufacturers be able to learn from the issues surrounding Canoo’s closure?
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