Canoo’s financial woes raise questions with Oklahoma lawmakers

OKLAHOMA CITY (KFOR) – A current monetary report from the electrical automobile firm, Canoo, reveals the corporate’s concern about its personal future.

Of their quarterly report, the corporate admits, “as of the date of this announcement, we’re reporting that there’s substantial doubt in regards to the firm’s capacity to proceed as a going concern.”

Tony Aquila, the corporate’s CEO, mentioned Canoo has $600 million in accessible capital, but it surely reported a $125-million web loss for the primary three quarters of this yr.

He added that the electrical automobile start-up broke floor on its deliberate facility in Pryor, Oklahoma.

Governor Kevin Stitt provided Canoo $15 million in incentives to construct their facility within the state.

The cash got here from the Fast Motion Closing Fund, a pool of funds that Governor Stitt has at his disposal to draw companies. Using these funds don’t require legislative approval.

State lawmakers have issues about this.

“If there had been extra folks on the desk, I’m certain that issues round this may increasingly have been mentioned,” mentioned Consultant Forrest Bennett, D-Oklahoma Metropolis.

With talks of the corporate needing additional monetary assist, Consultant Kevin West, R-Moore, doesn’t need taxpayers to be pay for one thing that doesn’t finally occur.

“You actually don’t need to have plenty of taxpayer {dollars} on the hook and IOU, so to talk, and have them not meet their expectations,” mentioned West.

Each the Governor’s Workplace and the Division of Commerce mentioned Canoo has not been awarded any cash.

“All state incentive choices defend Oklahoma taxpayers by making certain that they’re efficiency based mostly and lead to a web financial profit to the state,” mentioned Brent Kisling, the Commerce Division Govt Director.

Canoo defined its funding approach of their earnings name by saying, “our philosophy is to boost capital judiciously.”

The corporate expects to place automobiles available on the market for the general public in 2023. They had been not too long ago awarded a contract with NASA to move astronauts to the launch pad.