Canoo was founded in late 2017 when former BMW executive Stefan Krause left the struggling electric car startup Faraday Future to co-found Canoo (originally called Evelozcity) with a number of other executives. Krause and others were then sued by Faraday Future, which accused it of poaching employees and allegedly stealing trade secrets. The lawsuit was settled in late 2018.
Canoo said its cash and cash equivalents were valued at $104.9 million as of March 31, and the company lost $125.4 million over the past three months. That compares with a loss of $15.2 million in the first quarter of 2021. The company also expects its operating expenses to be between $95 million and $115 million in the second quarter, and its capital expenditures to be between $85 million and $105 million. Canoo has yet to generate revenue.
Canoo has been making management layoffs in recent months. Last year Canoo said the U.S. Securities and Exchange Commission (SEC) was investigating its merger with a special-purpose acquisition company (SPAC). This week, the company filed a lawsuit seeking to recoup the profits of a key investor with ties to China.
