EV manufacturer Canoo Technologies has backed out of a previously announced decision to relocate its corporate headquarters from Texas to Bentonville, Arkansas. It is the latest financial challenge for the struggling company.
Instead, the company plans to prioritize its efforts at the EV car plant in Oklahoma City.
What happened? Arkansas Business reported that after nearly three years of trying to move headquarters to Arkansas and also locate a research and technology center there, it was unable to do so.
While Canoo attempts to manufacture electric vehicles at the Oklahoma City plant, it deals with major financial problems, including a lack of cash to sustain planned operations for the next year. It admitted as much in an April 2024 filing with the Securities and Exchange Commission.
“Our current business plans require a significant amount of capital. If we are unable to obtain sufficient funding or do not have access to capital, we will be unable to execute our business plans and our prospects, financial condition and results of operations could be materially adversely affected,” stated the company.
“Our management has performed an analysis of our ability to continue as a going concern and has identified substantial doubt about our ability to continue as a going concern. If we are unable to obtain sufficient additional funding or do not have access to additional capital, we will be unable to execute our business plans and could be required to terminate or significantly curtail our operations.”
While Canoo received state financial support and recently was declared a Foreign Trade Zone, it only produced 22 EVs in 2023. It had promised to prepare the Oklahoma City plant for production of 20,000 units. Seventeen of the vehicles were produced in the fourth quarter of the 2023 fiscal year.
Canoo reported it had a $29 million net loss in the fourth quarter and lost nearly $303 million for all of 2023.
The post Canoo reverses decision to locate headquarters in Arkansas first appeared on Oklahoma Energy Today.
PEMA Professional Energy Marketers Association
