EV startup Canoo (GOEV) hit several milestones in the third quarter, including delivering its first EV built at its new Oklahoma facility.
Canoo delivers first “Made in Oklahoma” EV in Q3
“We are now in our manufacturing and revenue-generation phase,” Tony Aquila, Canoo CEO, said after delivering Q3 results this week.
Although it took “nearly three years to get to this point,” as Aquila explained, Canoo began generating its first revenue during the quarter.
Canoo announced it had delivered its first “Made in Oklahoma” EV to the state Tuesday. The company’s Lifestyle Delivery Vehicles (LDVs) are the first commercial motor vehicles to be built in the state since 2006.
The EVs were the first batch of an agreement between Canoo and the state for up to 1,000 vehicles.
The news comes after Canoo said it began generating revenue from its first three vehicles delivered to NASA in July.
Canoo’s journey to get here has been anything but smooth, but the EV maker is finally entering the “revenue-generation phase.”
Canoo begins generating revenue
“We continue to move toward our goal of achieving 20,000 annual unit capacity,” Canoo’s leader explained this week.
Despite the progress, “We still have things left to prove.” Canoo is cutting spending with an expected EBITDA loss of $85M to $105M in the second half of 2023. Capital spending is forecasted between $30M to $40M, down from $70M to $100M.
Canoo posted revenue of $519M on the sale of its first EV, while losses narrowed to $112M in Q3, compared to over $117M last year. The company’s net losses reached $273.6M through September.
The EV maker ended the quarter with $8.3M in cash and equivalents, compared to $5M at the end of June.
Canoo also unveiled its “American Bulldog” electric pickup truck last week. The EV pickup is a tribute to the “American spirit and reflects this country’s innovation,” according to Aquila.
With its “Made in America” approach, Canoo expects to benefit from the IRA’s Commercial Clean Vehicle Tax Credit. Canoo customers are eligible for a tax credit of up to $7,500.
Although it’s been anything but a smooth ride, Canoo finally generated its first revenue. The company has repeatedly doubted its ability to continue operations over the past few years due to a lack of funding.
The third quarter was a step in the right direction, but with a gloomy economic outlook, the next few months could present even more of a challenge for the young EV startup as it ramps production.
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