Once on the Verge of Bankruptcy, Canoo Show Signs of Righting the Ship

David Shultz

David Shultz reports on clean technology and electric vehicles, among other industries, for dot.LA. His writing has appeared in The Atlantic, Outside, Nautilus and many other publications.

Once on the Verge of Bankruptcy, Canoo Show Signs of Righting the Ship
Canoo

Canoo is a goofy name for a company. Particularly one that makes a goofy looking electric van. But the market wants what the market wants. And the market wants goofy-looking vans, apparently.


Yesterday Canoo announced they’d secured a binding contract to deliver 9,300 of its “lifestyle delivery vans” to Kingbee Rentals, a Utah-based van rental company. The fact that the new deal with Kingbee is binding, is a huge win for Canoo. Despite the large numbers for some of its former deals, many of the van-maker’s contracts were only partially binding. If Kingbee is happy with the initial delivery, the deal also includes the option to double the size of the order to 9,300.

Canoo, which got its start in the L.A. area before moving its headquarters to Arkansas, the binding deal is the latest in a string of large orders that might just help the company avoid bankruptcy. Earlier this year retail giant Walmart ordered 10,000 of the same vehicle. And last week Zeeba, another fleet-as-a-service rental company, put in an order for 5,000 units. Though the deal with Zeeba was only 50% binding (2,500 vans), it still marks a considerable shift in the company's future prospects. Before the Zeeba deal only 17% of Canoo’s total potential $1 billion in contracts had been binding, according to reporting by Electrek.

Still, the startup has posted losses in excess of $100 million in Q1 and Q2 of 2022, and its latest financial guidance cast considerable doubt on the company’s ability to remain solvent. As of August 8th, executives reported that the company only had $33.8 million in cash remaining, and its stock price reached an all time low of $1.28 on October 14th.

There’s no word yet on when delivery may take place, but the company’s stock has rebounded nearly 16% since the deal was announced. Stay tuned.

Subscribe to our newsletter to catch every headline.

Cadence

10 Viral TikTok Tech Gadgets To Buy This Holiday Season

Decerry Donato

Decerry Donato is a reporter at dot.LA. Prior to that, she was an editorial fellow at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.

10 Viral TikTok Tech Gadgets To Buy This Holiday Season

Part of TikTok’s evolution over the years includes becoming another outlet for consumers to purchase popular gadgets. The app generated $821 million in global consumer spending across the App Store and Google Play in the first quarter of 2022 alone.

And since the holiday season is among us, it’s time to get some gifts checked off your list. So here’s 10 tech gadgets that went viral on TikTok that you can buy for your loved ones.

Read moreShow less

LA Tech ‘Moves’: Disney Taps Bob Iger for CEO, Former Meta Exec Joins DeSo

Decerry Donato

Decerry Donato is a reporter at dot.LA. Prior to that, she was an editorial fellow at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.

LA Tech ‘Moves’: Disney Taps Bob Iger for CEO, Former Meta Exec Joins DeSo
LA Tech ‘Moves’:

“Moves,” our roundup of job changes in L.A. tech, is presented by Interchange.LA, dot.LA's recruiting and career platform connecting Southern California's most exciting companies with top tech talent. Create a free Interchange.LA profile here—and if you're looking for ways to supercharge your recruiting efforts, find out more about Interchange.LA's white-glove recruiting service by emailing Sharmineh O’Farrill Lewis (sharmineh@dot.la). Please send job changes and personnel moves to moves@dot.la.

Read moreShow less

This Week in ‘Raises’: Swell Energy Lands $120M, Modyfi Draws in $8M

Decerry Donato

Decerry Donato is a reporter at dot.LA. Prior to that, she was an editorial fellow at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.

This Week in ‘Raises’: Swell Energy Lands $120M, Modyfi Draws in $8M
This Week in ‘Raises’:

As funding in Los Angeles continues to slow down, Swell Energy still managed to raise fresh funding to accelerate the company's mission to deploy 26,000 energy storage systems in homes and businesses across the United States.

Read moreShow less
RELATEDEDITOR'S PICKS
LA TECH JOBS
interchangeLA
Trending