Canoo Will Relocate LA Headquarters to Arkansas, Posts Growing Losses in Q3

Samson Amore

Samson Amore is a reporter for dot.LA. He holds a degree in journalism from Emerson College. Send tips or pitches to samsonamore@dot.la and find him on Twitter @Samsonamore.

Canoo
Photo courtesy of Canoo

Electric vehicle maker Canoo is abandoning its Torrance headquarters for Walmart's home turf.

The company announced as part of its third quarter earnings call Nov. 15 that it will soon move its corporate headquarters to Bentonville, Arkansas as it moves up their production timeline.


Canoo CEO Tony Aquila said the electric vehicle maker will also base manufacturing and research and development facilities in Fayetteville, Arkansas and expand existing factory space in Pryor and Tulsa, Oklahoma to handle more of its software development, finance and customer service operations.

"Our discipline continues to be big news or no news. Therefore, we will accelerate our advanced manufacturing production in the U.S. to begin before Q4 2022," Aquila said in an earnings statement.

Canoo CEO Tony Aquila

Canoo CEO Tony Aquila

Part of the incentive for Canoo to move operations to these two states is agreements it inked with each of them that would guarantee financial incentives of roughly $400 million. That is on top of an additional nearly $100 million in vehicle orders Canoo expects to come from states and local universities, Aquila said.

Aquia said he expects the facilities to employ 1,200 people in the region.

"We are bigger fans of owning our own facilities than we are contract manufacturing, there are inherent risks with that (and) having it out of your control," Aquila added.

The move is a loss for Southern California, which has been home to a clutch of electric vehicle startup companies including Fisker, Karma and Faraday Future. Canoo still has yet to deliver any of its planned vehicles and is looking for an area that's cheaper than Los Angeles to do business in and cut costs.

Aquila said in the statement Canoo most of the company's manufacturing will happen at a facility in Pryor, Okla. which Canoo announced earlier this year.

To meet production demand, Canoo said it expanded its workforce by 22% to about 800 people by the close of the third quarter. In October, the carmaker said that Panasonic will supply batteries for its upcoming electric SUV.

The company is working on its main car, a boxy, electric "lifestyle vehicle" it describes as a "loft on wheels'' that it aims to begin selling by next year. It's also developing an all-electric pickup truck and multi-purpose delivery vehicle for businesses. In the industrial space, Canoo has a handful of competitors already closer to delivering, though -- including Glendale-based Xos Trucks, which already has an agreement to deliver 120 electric trucks to FedEx Ground by the fourth quarter of this year.

The carmaker reported no revenue this quarter, compared to the same time last year, when the company brought in nearly $2.6 million. Instead, operating losses mounted, increasing to roughly $107 million from roughly $27.2 million in Q3 2020.

Canoo's net loss for the third quarter was roughly $80.9 million, up from a net loss of $23.4 million last year.

Canoo said it expects operating expenses in the upcoming quarter to be between $95 and $115 million, and estimated it'll spend between $60 and $80 million in capital expenditures during that time.

While Canoo's stock was down at market close today, it was up at least 4.7% in after-hours trading to roughly $8.72 per share as the news of its new headquarters and deals outside California reached investors.

To meet production demand, Canoo said it expanded its workforce by 22% to about 800 people by the close of the third quarter.

Editors note: This story has been updated with comments from Aquila.

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Fuel Innovation: 7 Unforgettable Team Building Experiences in LA
Image Source: Discover LA

In today's competitive business landscape, team building activities have emerged as a crucial tool for fostering a positive work environment, enhancing productivity, and crucially, improving employee retention. Studies have shown that such activities help employees feel valued, with one report indicating that 93% of those who felt appreciated were more motivated at work. Importantly, team building events may improve retention rates, as employees who feel connected to their colleagues and company culture are more likely to stay long-term. With these benefits in mind, let's explore some of the most engaging and effective team building activities available in Los Angeles.

Pickleball

Image Source: Modern Luxury Angelino

Pickleball is a fantastic team bonding activity because of the easy-to-grasp rules and gentle pace make it perfect for everyone, regardless of age or fitness level. The game thrives on communication and teamwork, as players must collaborate and strategize to outplay their opponents, boosting team cohesion. Plus, the lively, fast-paced action sparks friendly competition and laughter, creating a fun and spirited atmosphere that brings everyone closer together. Los Angeles boasts numerous pickleball courts that are easy to rent if you have your own equipment. If you need additional assistance organizing your pickleball outing, there are plenty of full-service companies ready to handle every detail for you.

Resources: Pickle Pop, Corporate Pickle


Escape Room

Image Source: The Escape Game

Escape rooms are a great way to build camaraderie. They require participants to work together, combining their problem-solving skills and creativity to overcome challenges and puzzles. The immersive and time-sensitive nature of escape rooms fosters collaboration and communication. Additionally, the shared experience of tackling complex tasks and reaching a common goal helps build trust and foster positive emotions among colleagues.

Resources: The Escape Game, 60Out


Day Trip to Catalina Island

Image Source: Love Catalina

Catalina Island is a perfect day trip for a team because it provides a break from the usual work environment, allowing team members to relax and connect in a new setting. Shared experiences during the trip, such as exploring new places and participating in fun activities, help build stronger relationships and foster a sense of camaraderie. There are numerous team-building activities such as an arboreal obstacle course, an island tour, scavenger hunts and more.

Resources: Catalina Island Group Activities


Top Golf

Image Source: Topgolf

Topgolf is an excellent team building event because it provides an inclusive, relaxed atmosphere that accommodates players of all skill levels, fostering personal connections and improving team morale. The unique blend of competition and entertainment creates an ideal setting for building trust, enhancing communication, and revealing hidden skills among team members. Additionally, Topgolf offers structured team building packages with guided activities, discussion prompts, and lessons on culture, change, collaboration, and strategy, making it a versatile and effective platform for strengthening relationships and boosting overall team performance.

Resources: Topgolf El Segundo


SoFi Stadium Tour

Image Source: Discover LA

A SoFi Stadium tour offers a unique, behind-the-scenes experience of one of the world's most advanced sports venues, allowing team members to explore exclusive areas like premium suites, team locker rooms, and the player tunnel together. The tour provides a shared, memorable experience that can foster camaraderie and spark conversations among team members, regardless of their interest in sports. Additionally, the stadium's state-of-the-art features and impressive architecture can inspire creativity and innovation, while the group setting encourages interaction and collaboration, making it an engaging and enjoyable activity for teams of various sizes and backgrounds

Resources: SoFi Stadium Group Tours


Corporate Volunteering

Image Source: L.A. Works

Volunteer work serves as an excellent team building activity by uniting employees around a shared, meaningful cause, fostering a sense of purpose and collective accomplishment. It provides opportunities for team members to collaborate in new ways, often revealing hidden strengths and leadership qualities that may not be apparent in the regular work environment. Additionally, engaging in community service can boost morale, enhance the company's reputation, and instill a sense of pride among employees, leading to improved workplace relationships and increased job satisfaction.

Resources: Habitat for Humanity, L.A. Works, VolunteerMatch


Corporate Improv Sessions

Image Source: Improv for the People

A corporate improv class encourages spontaneity, creativity, and quick thinking, skills that are valuable in the workplace. It promotes active listening and collaboration, as participants must work together to create scenes and respond to unexpected situations, fostering better communication and trust among team members. Additionally, the playful and often humorous nature of improv helps break down barriers, reduces stress, and creates a shared positive experience that can improve team morale and cohesion long after the event.

Resources: Improv-LA, Groundlings, Improv for the People

🎬 Paramount and Skydance Are Back On
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Happy Friday Los Angeles! Hope you all had a fantastic Fourth!!

🔦 Spotlight

Paramount and Skydance Media have rekindled talks to merge after negotiations abruptly halted in June. The proposed deal, contingent on approval from Paramount’s board, aims to combine Paramount’s extensive media holdings—including CBS, MTV, and Nickelodeon—with Skydance’s film expertise showcased in hits like "Top Gun: Maverick." This merger signals a potential transformation in the media landscape, positioning the new entity to compete more effectively amid challenges from streaming services and the decline of traditional cable TV.

Led by Shari Redstone, Paramount’s controlling shareholder via National Amusements, the deal represents a pivot towards revitalizing Paramount’s strategic direction amidst financial struggles and shareholder concerns. The involvement of major investors like RedBird Capital Partners and David Ellison underscores the financial backing aimed at stabilizing Paramount’s operations and addressing its $14 billion debt burden. Importantly, the agreement includes provisions to protect National Amusements from potential legal challenges, addressing previous hurdles that stalled earlier negotiations.

The deal also includes a 45-day period for Paramount to explore alternative offers, highlighting continued interest from other potential buyers like Barry Diller’s IAC and media executive Edgar Bronfman Jr. This flurry of activity underscores the significant stakeholders’ interest in Paramount’s future and its potential as a key player in a rapidly evolving media industry.


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LA Companies

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