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Canoo deals with financial issues ahead of Oklahoma factory build

Ulrich Kranz
Posted at 11:35 AM, May 11, 2022
and last updated 2022-05-11 12:35:01-04

TULSA, Okla. — Texas-based electric car-maker Canoo reported millions of dollars in losses in its first quarter of 2022 as Oklahoma awaits the building of a new factory in Pryor.

The state agreed to a contract with Canoo in February for the new factory to be located at MidAmerica Industrial Park. However, the company reported $125.4 million in net loss in its first-quarter earnings.

They still expect to increase expenditures from $95 million to $115 million in their second quarter. As of the first-quarter report, they have more than 17,500 preorders with a projected value of $750 million.

"We have been clear about our philosophy of raising capital judiciously and will continue with this disciplined approach," said Tony Aquila, Investor, Chairman & CEO at Canoo.

"We have more than $600 million in accessible capital to support Start of Production (SOP). As operators and investors, we have significant experience raising capital in challenging markets – and the best way to raise capital is to achieve your goals. We will continue to raise when needed, bridge to milestones and be in a position to take advantage of improving market conditions. We are focused on long term value creation for our customers and shareholders."

Oklahoma waived competitive bidding requirements to give Canoo its five-year contract that lets state agencies buy up to 1,000 vehicles, according to The Frontier.

>> See Canoo's full first-quarter report here

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