FYI: Canoo’s Unexpected Journey Ends with Bankruptcy and Liquidation
Canoo, once a promising name in the electric vehicle (EV) startup realm, has announced its decision to file for Chapter 7 bankruptcy. A company that began with innovative ideas and significant industry potential is now set to shut down operations and liquidate its assets to repay its outstanding debts and creditors.
A Brief History of Canoo
Founded in 2017, Canoo quickly gained attention for its ambitious EV designs, notably its adaptable skateboard platform that inspired industry giants like Hyundai to seek partnerships. Initially dubbed Evelozcity, Canoo offered diverse possibilities, from sporty sedans to practical vans, using a versatile chassis. However, the startup struggled to secure the capital necessary to sustain its operations, leading to its current predicament.
The Road to Bankruptcy
Canoo’s financial struggles became apparent in 2024 when it reduced its workforce by nearly 25%. Hopes for a financial turnaround dimmed further when, later that year, Canoo dismissed its remaining 82 employees. Despite efforts to stabilize, these measures were futile, and at the start of 2025, Canoo officially announced its bankruptcy and the immediate cessation of operations. The company’s assets will now be liquidated to manage unpaid obligations and creditors.
Words from the CEO
Tony Aquila, CEO and major investor, expressed gratitude towards Canoo’s employees and partners. In his statement, Aquila thanked NASA, the Department of Defense, Walmart, and the U.S. Postal Service, among others, for their trust in Canoo’s vision and products. Despite his disappointment, he acknowledged the dedication and belief shared by everyone involved in the Canoo journey.
Failed Partnerships and Missed Opportunities
Canoo’s relationship with industry stalwarts seemed promising, particularly after Hyundai announced plans in 2020 to develop an EV platform with Canoo. This alliance was expected to streamline vehicle development and drive costs down. Unfortunately, the partnership fizzled out without benefiting Canoo substantially. Additionally, promising agreements, such as the U.S. Postal Service’s 2024 order for 190 Lifestyle Delivery Vehicles, weren’t sufficient to rescue the company.
Canoo’s Manufacturing Potential
Canoo was not just innovative in design but also geared for substantial local manufacturing. Its proposed facility in Oklahoma City could have provided 1,100 high-quality jobs, with most components sourced from North America. Such commitments could have strengthened the U.S. automotive industry if Canoo had realized its potential.
Final Thoughts
Canoo’s journey serves as a stark reminder of the challenges facing EV startups, highlighting the critical importance of financial robustness and strategic industry partnerships. While its innovative designs garnered interest and support, the inability to convert promise into sustainable operations marked the end for Canoo.
For more insights and updates, reach out to us at tips@automotive.fyi, or on Twitter @automotivefyi.
Authored by William Kouch, Editor of Automotive.fyi
