Canoo's Production Dates Could See Further Delays
Canoo is one of a number of EV startups struggling through the current downward trends on the stock market. Will the new brand manage to stay afloat?
The last two months have not been kind to
electric vehicle
makers. Stocks began to tumble in April as even the most established brands struggled to secure materials for production. For startups like Canoo, the horizon looks even dimmer. Production of EVs hasn’t even started, and without the pre-existing relationships with suppliers enjoyed by legacy brands like
Ford and GM
, getting start keeps getting more difficult.EV industry waters don’t look friendly for Canoo
Canoo, like many of its contemporaries, is in a pickle. The company started offering pre-orders for its
three vehicles
in May 2021, five months after going public through a reserve merger with a special-purpose acquisition company (SPAC). But in May of this year,
Reuters
reports that the company warned investors of a cashflow problem and “substantial doubts” in its ability to continue. The current economic environment has proved extremely difficult for EV startups like Canoo. Since the beginning of April, the company has lost 35% of its stock value, a downward trend shared by competing brands like
Rivian
, Lordstown, Lucid, and Tesla.Canoo’s steerer remains steadfast
Despite the current troubles, CEO Tony Aquila is hopeful that Canoo can weather the storm. The company still has access to about $750 million in funding, enough to get its plant in Fayetteville,
Arkansas
up and running. It also has yet to tap into $400 million in incentives from Oklahoma, where it plans to build its second assembly plant. Canoo will also save on taxes with the Oklahoma facility because the site is on Cherokee Nation land, making it an “opportunity zone.”
Canoo’s secret weapon—its future products
Canoo has a lot to overcome before it can legitimately compete in the EV market. But one thing’s for certain—its upcoming models make vehicles Tesla, Rivian, and other automakers look passé by comparison.
The
startup
has three designs set for production: a bubble-shaped “Lifestyle Vehicle” van and pickup truck the likes of which you’ve never seen, and box-shaped a commercial vehicle.But maybe the best thing about the upcoming Canoos are their sticker prices. The Lifestyle Vehicle will start at only $34,750 for the Delivery model, with the Premium trim reaching just under $50,000.
MotorTrend
expects the pickup truck to have a similar price range.Canoo originally intended to offer the van and pickup truck through a subscription service, but pre-orders for outright ownership seem to have pushed that idea into the waste-paper basket.
Other ownership costs for future Canoo drivers
The comparatively low starting prices for Canoos might get EV-curious drivers outpriced by Tesla and Rivian excited enough to pre-order. But a word to the wise: the sticker price of an EV isn’t the only expense you’ll have to worry about.
You’ll also want to outfit your home with a decent
EV charger
which, depending on your vehicle, can ring up for anywhere between $1,000 and $10,000. Car insurance
is also a concern, since average rates are still higher than they are for dinosaur-burning vehicles. That said, If you want to save money on car insurance, the Jerry app is a good place to start. A licensed broker, Jerry does all the hard work of finding cheap quotes from the top name-brand insurance companies and buying new car insurance.
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