Canoo stock crashes on going concern doubts

Canoo Inc (NASDAQ: GOEV) says its management has identified “substantial doubt about our ability to continue as a going concern”. Shares of the EV firm are down about 40% in extended hours.  

Canoo lacks funds to support operations

The California-based company does not have sufficient funds to support operations for another twelve months, as per its press release on Monday.

Canoo also confirmed that its executives are looking for ways to raise additional capital but said it wasn’t sure if such efforts will end up successful.

The news arrives only days after $GOEV had its production facility in Oklahoma City approved as an FTZ (foreign trade zone) that it said will likely “deliver up to $70 million in vehicle cost savings and duty deferral in 2024 and 2025”.

Canoo reports $0.88 million revenue for 2023

Also on Monday, Canoo Inc said it lost just over $300 million in 2023 – down from more than $487 million a year earlier.

On a per-share basis, the electric vehicles company lost 53 cents last year versus $1.81 per share in 2022. $GOEV ended the full year with $0.88 million in revenue while it had no revenue to report previously.

Still, failure to secure new capital will make Canoo “terminate or significantly curtail operations”, as per its filing with the Securities & Exchange Commission today.

Note that the EV firm executed a 1-for-23 reverse stock split in March to remain listed on Nasdaq. Heading into Monday, Wall Street had a consensus “buy” rating on Canoo stock.