EV startup Canoo posts larger-than-expected loss in first quarter

By Thomson Reuters May 14, 2024 | 5:05 PM

(Reuters) – Electric vehicle startup Canoo posted a larger-than-expected loss for the first quarter on Tuesday, but kept its outlook for the year unchanged.

Slowing demand in the United States and stiff competition from Chinese EV makers in the world’s largest auto market has hit demand for companies including Canoo.

That has forced several startups to shut shop as investors have also grown cautious, making it difficult to raise more funds.

EV startup Fisker had raised going concern doubts in February, followed by the delisting of its stock from the New York Stock exchange and the collapse of talks with a large automaker for a potential deal in March.

Canoo first cautioned investors in 2022 that it had “substantial doubt” about continuing as a going concern and has since been raising capital to support production.

Canoo’s net loss widened to $110.7 million for the quarter ended March 31 from $90.7 million in the year-ago quarter. Analysts, on average, had expected a loss of $55.2 million, according to LSEG data.

The Texas-based company’s research and development expenses fell about 44%, helping lower operating expenses to $62.6 million from $81.5 million a year earlier.

The company’s cash and cash equivalents stood at $18.2 million as of March 31, up from $6.4 million at the end of December last year.

Canoo, which went public in 2020 through a reverse merger with a special purpose acquisition company, is a supplier of electric delivery vans to Walmart and crew transportation vehicles to NASA.

(Reporting by Jaspreet Singh in Bengaluru; Editing by Shailesh Kuber)