Canoo’s Newest Van Debuts as Losses Shrink
As orders roll in, company looks to increase capacity at its Oklahoma plants.
By Larry Printz | THE DETROIT BUREAU
Things seem to be going swimmingly for EV startup Canoo, which announced its second quarter results yesterday, while unveiling its newest vehicle, the LDV 190, a derivative of their LDV 130 Lifestyle Delivery Vehicle.
Due to decreased R&D expenses, the electric vehicle manufacturer reported a smaller-than-anticipated quarterly loss on Monday, lifting its stock 2% in after-hours trading before declining in early market trading. Canoo’s second quarter deficit decreased from $164.4 million to $70.9 million as operating expenses decreased to $73.6 million from $173.5 million in the same quarter last year due to a 67% decrease in research and development spending.
But cash remains an issue. As of June 30, Canoo reported having cash and cash equivalents of a mere $5 million, down from $36.6 million at the end of 2022. For the second half of 2023, the company anticipates spending between $70 million and $100 million on capital projects.
Canoo LDV 190
The money is starting to roll in
But it’s not all bad news and expenditures.
“We entered the revenue and income generation phase with the advancement of our contract with the Department of Defense, and we delivered vehicles to NASA,” said Tony Aquila, chairman and CEO at Canoo. “And we closed another Fortune 100 customer agreement to purchase vehicles for its national fleet.”
Canoo has agreements with Walmart and the National Aeronautics and Space Administration, or NASA, to provide electric vehicles, as well as with the U.S. Defense Department to supply advanced battery packs.
The company also stated it has signed incentive contracts worth an estimated $113 million over the next decade with the state of Oklahoma and the Cherokee Nation. According to the agreements, Canoo has already begun hiring for both its battery manufacturing business in Pryor, Oklahoma, and its vehicle assembly plant in Oklahoma City.
As a result, Canoo will qualify for some state tax credit and exemption programs as well as performance-based payments as a result of the agreement with the Department of Commerce. Canoo signed a long-term leasing arrangement earlier this year for the vehicle production facility in Oklahoma City, investing more than $320 million at both of its locations there.
The LDV 190 uses the same platform as the LDV 130.
“Our facilities are nearing substantial completion as we’ve achieved a 20,000-unit run rate for our battery module line in Pryor and robotics and assembly line in Oklahoma City for our MPP1 platform,” Aquila said.
In addition, the company also announced that the U.S. Securities and Exchange Commission has wrapped up its investigation of Canoo’s reverse merger with special purpose acquisition company Hennessy Capital Acquisition Corp. in order to go public.
“We are pleased to close the chapter involving the legacy SEC matter,” Aquila said.
What’s next
The company also unveiled its newest model, the Lifestyle Delivery Vehicle (LDV) 190, which expands the company’s line-up into the Class 2 electric cargo van segment, meaning they have a gross vehicle weight rating of 6,001 to 10,000 pounds. The new vehicle fills the product portfolio between the LDV 130 and the forthcoming larger Canoo MPDV.
“This newest vehicle offers even greater space and flexibility for fleet owners with the same unique technologically advanced performance of our original LDV 130,” Aquila said.
Built on the same Multi-Purpose Platform (MPP) as the LDV 130, offers 30% more space and 21% greater payload capacity, but shares the same wheelbase. It boasts a beefed-up suspension system to handle the increased payload, but it retains the LDV 130’s steer-by-wire system.
The LDV 190 also features a patent-pending interchangeable rear cargo area that allows owners to change between barn door, tambour door and a split tailgate configuration. The company will also offer the LDV 190 with dual 50/50 barn doors with 270° hinges that fold backwards against the body.
The company plans to be ready for annual production of 20,000 units by year’s end.
The new van provides 172 cubic feet of space behind the bulkhead, with more cargo room available in the front cabin if the single seat version is ordered. Composite translucent roof panels, shelving systems, storage bins, and a sliding cargo floor with a 1000-pound working capacity are optional.
“As we build out our family of vehicles over time, we expect to continue to bring forward models and options that improve safety, reliability, performance and are zero emission,” Aquila said.