Canoo Secures Survival Funding While Building a $1 Billion EV Sales Pipeline
Pre-revenue electric vehicle startup Canoo survives a cash crunch and secures enough capital to last through 2022, thanks largely to a massive Walmart order.
Electric vehicle startup Canoo operates as a pre-revenue company that continues to burn through cash, but it secures enough capital to sustain operations through the end of 2022. Unlike the previous quarter, when the company issues a warning about potentially running out of money, Canoo now boasts access to $250 million in funding. This financial turnaround gives the startup the runway it needs to prepare for the start of vehicle production.
The company builds a robust sales pipeline that exceeds $1 billion, driven primarily by a major agreement with Walmart to purchase 4,500 electric delivery vehicles with an option for 5,500 more. Canoo also expands its reach by supplying its multi-purpose platform to the U.S. Army for testing and by unveiling custom electric vehicles designed for NASA. These high-profile partnerships help validate Canoo's unique vehicle designs despite its lack of actual revenue.
Canoo still faces significant financial losses, reporting a net loss of $164.4 million in the second quarter alone, and carries the baggage of past internal drama, legal issues, and an SEC investigation. However, investor confidence improves as the company's stock jumps nearly 7% following the release of its second-quarter results. With customers lined up and production preparations underway, Canoo shows signs of finally turning its ambitious strategy into a tangible business.