Did you know that Canoo’s earlier name was Evelozcity?

In 2017, two seasoned automotive executives, Stefan Krause and Ulrich Kranz, left Faraday Future to build a new company with a goal to revolutionise urban mobility with affordable, subscription-based electric vehicles.
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They found their early backers in Chinese investor Li Pak-tam and German entrepreneur David Stern.

By September 2019, Canoo unveiled its first prototype: a distinctive, pod-shaped electric van designed for ride-sharing and urban commuting.

Krause, with a robust background as the former Chief Financial Officer of Deutsche Bank and BMW, brought financial acumen while Kranz, renowned for his leadership in BMW’s electric vehicle initiatives, added technical prowess.
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The vehicle's minimalist design and spacious interior garnered attention, positioning Canoo as a potential disruptor in the EV market.

Initial Market Reaction:

• Scalable EV Platform: A versatile electric vehicle platform that could be adapted for various vehicle types, from passenger vans to delivery trucks, aiming to cater to diverse market needs.
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• Subscription-Based Ownership Model: Offering its vehicles exclusively through a subscription model, providing consumers with a flexible alternative to traditional car ownership.
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• Collaborative Partnerships: The partnership with Hyundai Motor Group, was aimed to leverage shared expertise and resources to expedite the development and deployment of its EV technologies.

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BUT Missteps in Strategy Occurred from Day 1:

• In February 2020, Canoo announced a collaboration with the Hyundai Motor Group to co-develop a scalable EV platform. The goal was to accelerate Canoo’s technological advancements and market entry. However, by March 2021, the alliance dissolved as Canoo pivoted its business model from subscription services to direct sales, signalling internal strategic discord.
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• Following Hyundai’s disaster, Canoo’s tried merging with Hennessy Capital Acquisition Corp. IV, through a (SPAC), in December 2020. As a result of this move, Canoo listed on the NASDAQ, with an initial valuation of $2.4 billion.
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• Despite a great start, the company grappled with escalating operational costs and diminishing investor confidence.
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• In 2021, despite announcing plans for manufacturing facilities in Oklahoma and Arkansas, Canoo struggled to commence production.

The Dominoes effect:

• Business Model Confusion: Initially, Canoo promised a subscription-based EV ownership model. However, a sudden pivot to traditional direct sales in March 2021 left consumers, investors, and stakeholders confused.
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• Shrinking Revenue: In 2023, Canoo generated revenues of only $886,000. This was overshadowed by substantial operating expenses.
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• Accumulated Losses: By the end of 2023, Canoo reported total accumulated losses amounting to $1.5 billion.
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• 2025 Bankruptcy: On January 17, 2025, Canoo filed for Chapter 7 bankruptcy, indicating plans for liquidation. At the time of filing, the company reported assets valued at $126 million against liabilities of $164 million.
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Did you know that If You Invested $1,000 in Canoo When It Came Public, it would have become just $16.28 today?

But Guess What !!
Did you know that Canoo paid payments to CEO Tony Aquila's company in 2023, for private aircraft usage and shared services🧐, to the tune of nearly four times the company's actual revenue for that year?

5 Key Takeaways for Startups to avoid burning $2.1 Billion:

1. Consistent Vision and Strategy: Canoo’s shift from a subscription-based model to direct sales, coupled with the abrupt termination of the Hyundai partnership, confused its customers and investors alike.
   ​Takeaway: Maintain a clear and unwavering business model. Try avoiding flipping business plans like a rolodex and stick to a clear strategy.
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2. Financial Transparency: Extravagant spending on executive luxuries by Canoo, such as private jets, amidst mounting losses, alienated investors and employees alike.​
   Takeaway: Exercising fiscal responsibility is key to a business, and spending your own CEO for splurging excessive money would never going to cut it anyways.
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3. Leadership Stability: Changing captains is never a great idea for a team, same has stayed true for corporates throughout, and ignoring this, spelled major doom for Canoo’s business direction.​
   Takeaway: Cultivate a stable leadership team to provide consistent direction and maintain stakeholder confidence.
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4. Realistic Financial Projections: Canoo lost the sight of mapping its own depth in the changing business landscape and set targets that was slated to fail right from the start.
   ​Takeaway: Simply put, don’t kid yourselves with what a business can achieve over a time-period, or at least don’t kid the investors, if nothing else.
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5. Agile & Nimble: Canoo failed to steer in the direction of growth, because of lack of a stable leadership and business goal​
   Takeaway: While adaptability is crucial, don’t take your eye off the ball and focus on company’s core objective.