EV Start-Up Canoo Declares Bankruptcy

Electric vehicle start-up Canoo has declared bankruptcy and will cease operations immediately, seven years after its launch.

Though Tesla is now firmly among the world’s most valuable companies, we’ve seen plenty of EV firms bite the dust recently. EV start-up Fisker, whose flagship Ocean SUV had struggled with safety recalls, filed for Chapter 11 bankruptcy in June, citing “various market and macroeconomic headwinds.” Canadian electric bus and truck maker Lion Electric closed up shop in December 2024.

Canoo specialized in making electric vans and, during its time in operation, secured contracts with NASA, the Department of Defense, the United States Postal Service (USPS), the state of Oklahoma, and Walmart. It filed for relief under Chapter 7 of the Bankruptcy Code in the Bankruptcy Court for Delaware.

According to News, it was reportedly at one point in talks with Apple to either be acquired or receive investment as part of Apple’s long-rumored electric vehicle project (which never saw the light of day). It was also preparing to sell its vehicles to regular consumers and had even begun accepting deposits, which it began refunding in November. Former CTO and CEO of Canoo, Ulrich Kranz, also at one point worked for Apple’s car project, News notes.

Canoo went public in December 2021, raising around $600 million by listing on the NASDAQ via a merger with Hennessy Capital Acquisition Corp. The company had made several unsuccessful attempts to save its operations over the past year, seeking investment from the US Department of Energy’s Loan Programs Office and foreign investment from Saudi Arabia.

According to the filing, the start-up has assets worth $126 million and owes over $164 million to its creditors.

The announcement may not come as much of a surprise to people who were following the company closely. It furloughed 82 employees in December, idling its factories in Oklahoma, saying it had “no choice” but to take the measure as it tried to raise capital.

About Will McCurdy

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I’m a reporter covering weekend news. Before joining PCMag in 2024, I picked up bylines in BBC News, The Guardian, The Times of London, The Daily Beast, Vice, Slate, Fast Company, The Evening Standard, The i, TechRadar, and Decrypt Media.

I’ve been a PC gamer since you had to install games from multiple CD-ROMs by hand. As a reporter, I’m passionate about the intersection of tech and human lives. I’ve covered everything from crypto scandals to the art world, as well as conspiracy theories, UK politics, and Russia and foreign affairs.

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