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Canoo's Electric Dreams Crash: EV Startup Files for Bankruptcy, NASA and Walmart Deals in Limbo

Canoo’s Electric Dreams Crash: EV Startup Files for Bankruptcy, NASA and Walmart Deals in Limbo

Electric Vehicle Startup Canoo Files for Chapter 7 Bankruptcy

Canoo, the California-based electric vehicle startup, announced today that it has ceased operations effective immediately and filed for Chapter 7 bankruptcy in Delaware. The company’s assets are valued at approximately $126 million, while its debts exceed $164 million.

The bankruptcy proceedings will involve the appointment of a Bankruptcy Trustee who will oversee the liquidation of Canoo’s assets and the distribution of proceeds to creditors. This development comes after the company failed to secure support from the US Department of Energy’s Loan Programs Office and foreign investors.

Recent events leading to the bankruptcy filing include the idling of Canoo’s Oklahoma operations and the implementation of a mandatory unpaid break for employees. The company has also experienced a significant loss of executives, including all of its founders.

The bankruptcy filing raises questions about Canoo’s existing partnerships and projects. The company had been contracted to produce shuttles for NASA’s Artemis crew and had an agreement with Walmart to build 4,500 electric delivery vans. The status of these projects remains uncertain.

In a statement, Canoo chairman and CEO Tony Aquila expressed disappointment over the outcome but conveyed gratitude towards the company’s partners and entities involved in its journey. “Despite our best efforts, we were unable to overcome the financial challenges facing our company,” Aquila stated.

This development marks a significant setback for the electric vehicle industry and highlights the ongoing challenges faced by startups in this competitive sector. As the bankruptcy proceedings unfold, stakeholders and industry observers will be closely monitoring the implications for Canoo’s employees, partners, and the broader EV market.