EV maker Canoo slashes spending for second half of 2023, forecasts smaller loss

by | Nov 15, 2023 | Business

(This Nov. 14 story has been corrected to fix revenue figure to $519,000 from $519 million in paragraph 7)

(Reuters) – Canoo on Tuesday slashed spending plans for the second half of the year amid a market slowdown for electric-vehicle (EV) sales and forecast a smaller core loss in a tight funding environment.

The EV maker expects capital expenditure of $30 million to $40 million in the second half of 2023, compared with its prior forecast range of $70 million to $100 million.

Automakers such as Tesla, Ford and General Motors have been cautious about expanding EV production capacity amid economic uncertainties.

Canoo projects core loss to be between $85 million and $105 million for the second half, versus its previous range of $120 million to $140 million.

The company, which has contracts with the U.S. Defense Department for supply of advanced battery packs, and Walmart and NASA for supplying EVs, said its loss narrowed to $112 million in the third quarter, compared with $117.7 million a year earlier.

Canoo said its first revenue was generated in July when it delivered its first three NASA vehicles.

Its revenue came in at $519,000. Adjusted loss per share was 6 cents, compared with LSEG estimates of a 12-cent loss.

“We are now in our manufacturing and revenue-generation phase, while we still have things left to prove,” said CEO Tony Aquila.

Its cash and cash equivalents were $8.3 million as of Sept. 30, compared with $5 million in the preceding three months.

Canoo last week unveiled the “American Bulldog” electric pickup truck, looking to further its push into the American market where pickups are among the top-selling vehicles.

The company also said it delivered its first “Made in Oklahoma” EVs to the state government.

“We are continuing to grow our presence in Oklahoma, and by the end of Q4 ’23, target 20% to 25% of our total workforce will be Oklahomans,” Aquila added.

(Reporting by Samrhitha Arunasalam in Bengaluru; Editing by Shilpi Majumdar)


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