Canoo seems to be reestablishing its foundation for future success. The company appears to be struggling and continues to fight an uphill battle.
Canoo might be down to only one actively participating founder. Tech Crunch sources alleged that Canoo co-founder and current Chief Technology Officer Sahel Merchant would be leaving his position. However, details on Merchant’s supposed exit from Canoo are sparse. The only Canoo founder left is Christoph Kuttner who is the company’s Chief Engineer.
Merchant is leaving Canoo at a precarious time, given the company is closing its office in Los Angeles. Earlier this month, Canoo wrote in a SEC filing that it plans to permanently drop its headcount at the Torrance, California facility. The company plans to move 137 out of 194 of its employees to either Oklahoma or Texas.
In the second quarter, Canoo reported a quarterly revenue of $605,000 and a quarterly Adjusted EBITDA of $38.6 million. It also reported an Adjusted Net Loss of 61 cents per share.
“This quarter represented good progress with US and international customers completing pilots and testing. We are focused on left-hand drive and right-hand drive large fleet customers and finalizing their configurations,” noted Canoo.
These are indeed trying times for Canoo. However, it might also be an excellent chance for the company to reorient itself and build a better foundation for future success.
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