Canoo to buy Oklahoma City auto manufacturing plant • TechCrunch | So Good News
Commercial electric vehicle company Canoo has signed an agreement to buy a vehicle manufacturing plant in Oklahoma City, the company announced Wednesday alongside its third-quarter earnings. Canoo is from Oklahoma; The news comes a week after Canoo said it would build an EV battery module manufacturing plant in Pryor.
The new plant is intended to produce Canoo’s electric lifestyle delivery vehicle (LDV) and electric SUV range (LV). Canoo is still operating at its “megamicro factory” in Pryor, but not until it comes online. This new facility will help Canoo ramp up production and bring EVs to market by 2023.
Canoo CEO Tony Aquila said the company expects to start production for the LDV on November 17 and complete certification in the first quarter of 2023. The goal is to build 15 cars this year, which will lead to committed orders from customers like NASA and Walmart. .
The 120+ acre facility in Oklahoma City has a “production-ready infrastructure” and is “strategically located with easy access to road and rail,” according to Canoo Aquila. Canoo is a robot, The facility will be modified to house a full vehicle assembly line with a paint shop and beauty center. Canoo said the plant will be powered by clean energy.
“Follow These Initially build we will be Then Strongly Change All our Equipment versus Attention To our New building During Q1 versus of Q2 2023,” Aquila said Wednesday. “As we Get started. Production we expect The first Can be sold. Vehicle Delivery To occurs. in the The back Half of Q1 versus we will be Approach road Production In 2H 2023 To 20,000 units Run Rate by A year end.”
Aquila said the megamicro plant in Pryor is “slightly delayed for economic reasons.” But when Canoo can shift resources there; The startup will be able to double its turnover to 40,000 units by the end of 2024.
Longer term, the Oklahoma City plant will focus on manufacturing defense and specialty products, Aquila said Wednesday. In April, NASA selected Canoo to provide crew transport vehicles for the launch of the crewed Artemis lunar probe, and in July, the US Army selected Canoo to provide EVs for analysis and demonstration.
Canoo Q3 Financials
Canoo closed the quarter with $6.8 million in cash equivalents. That was down from $33.8 million last quarter and $224.7 million from the fourth quarter of 2021. In less than a year, Canoo has burned through $217.9 million and still has no revenue.
Aquila said Canoo’s cash burn is down 25% as the company continues to change its cost mix and increase the ratio of capital spending to operating spending.
The company’s loss from operating activities totaled $109.4 million in the quarter, bringing its GAAP net loss and comprehensive loss to $117.7 million.
Canoo says it has access to $200 million through a “market offering” program; But access to capital is not the same as having cash on hand, Canoo said.
“On Finance before we there is safe One Additional $30 million in the a Pipe versus a Note To Be changed. To Cash Or stock,” Aquila said the company is in the final stages of evaluating different financing options for the Oklahoma plant.
Canoo seems committed to getting more funding and future earnings to fizzle out.
After reporting this year’s first quarter earnings. Canoo has issued a growing concern warning saying it does not have enough funds to stay afloat. The second quarter improved for the company thanks to a deal with Walmart to sell 4,500 electric delivery vehicles. This not only secures future income for Canoo, but also gives the company another opportunity to pursue additional undiluted and low-cost capital financing opportunities.
Since then, Canoo has secured contract fleet orders from Kingbee and Zeeba to purchase 9,300 and 3,000 vehicles, up from 18,600 and 5,450 units respectively. According to Aquila, Canoo today has more than $2 billion in total orders in its pipeline.
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Aquila said Canoo’s cash position is poor, but lack of access to cash has led to greater competitiveness and efficiencies.
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Canoo, except for stock-based compensation; Canoo revised its remaining spending guidance to $30 million to $50 million, including operating expenses of $70 million to $90 million and capital expenditures.
“We are. now on A song for a 40% Reduction in the Operation. Cost for The Second Half of The one year which is Significantly development of Compare To a Before disclosed. Dragging. of 20% reduced,” said Ramesh Murthy, Canoo’s senior vice president of finance.
Canoo’s stock was up 3.42% after hours, closing at $1.17.