Can Canoo Cancel Cash Concerns? – The Detroit Bureau

Startup EV maker Canoo just delivered three electric Crew Transportation Vehicles (CTVs) to NASA’s Kennedy Space Center in Florida. These vehicles will be used to transport astronauts to the launch pad for the Artemis lunar missions.

The CTVs are made to carry fully suited astronauts, flight support crew and equipment to the launch pad. The vehicles have an exclusive interior and exterior design that will provide astronauts and crew comfort and safety while on the nine-mile journey to the launch pad at Kennedy Space Center. 

“We are thrilled to be a part of the Artemis missions and to deliver NASA’s first zero-emission built for mission crew transportation vehicles,” said Tony Aquila, chairman and CEO of Canoo. 

The Artemis II is the first crewed mission that is part of NASA’s plan to establish a long-term presence at the Moon for science and exploration. The 10-day flight will test NASA’s foundational human deep space exploration capabilities, the Space Launch System rocket and Orion spacecraft, for the first time with astronauts.

Can fleet sales save Canoo? 

The delivery is certainly a feather in the cap for Canoo, which was founded in 2017 but has yet to begin retail customer deliveries of its vehicles. That’s at least somewhat by design, as the company pushes forward toward fleet sales that will help work any potential bugs out of the products. Other EV makers who went to market before they were fully vetted have been forced to issue massive recalls. 

In addition to NASA, Canoo has already delivered an unspecified number of examples of a Light Tactical Vehicle (LTV) to the United States Army for analysis and demonstration. The company revealed the LTV is “engineered for extreme environments and includes stealth configurations.” The LTV incorporates carbon-kevlar to reduce weight while maintaining strength.

“The LTV is another milestone proving the power of our technology and how it can be used, even in tactical situations,” Aquila said last December.  

The LTV incorporates some features that will likely find their way into civilian commercial and personal vehicles. The mil-spec EV can be converted from a pickup to a flatbed truck, a cargo vehicle and more. With a convertible flatbed platform, the LTV can easily carry standard sized plywood, construction and oversized materials. Additionally, Canoo’s proprietary modular attachment system and accessories allow users to quickly mount racks, ramps, storage boxes, tents or other equipment. 

Finally, the Canoo LTV has a proprietary all-wheel drive system with up to 600 driveline horsepower. The vehicle is designed specifically for off-road use, with air springs, raised suspension and 32-inch all-terrain tires for ground clearance. That’s a clear shot across the bow of the Jeep Wrangler, Ford Bronco and the array of supercharged high-performance pickup trucks currently on the market. 

Can’t buy one yet 

For all the promise of Canoo’s skateboard platform design and versatile body components, you still can’t buy one. The company has been taking pre-orders since 2021 with a $100 deposit, but the only price published on the website is that the “Lifestyle Vehicle,” that looks like a van will start at a soft $39,950. 

We say soft because Canoo’s fine print says that’s a “targeted starting price” for the stripped-down Delivery trim. There’s no word on pricing for the three consumer-oriented trims, nor for the pickup truck or larger Multi-Purpose Delivery Vehicle or the bare skateboard platform. 

Canoo is also still losing money. The company’s first-quarter financial report shows an adjusted net loss of $72 million for the three months ended March 31, 2023, compared to a $120.1 million loss for the same quarter last year.

However, the company has enough cash to keep going, has reduced its burn rate substantially, and has a knack for coming up with fleet orders that keep its corporate head above water. For example, in the last 12 months, the company has announced orders for 4,500 vans from Walmart,  3,000 vehicles from Zeeba and 9,300 vans from Kingbee.

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• Source: https://www.thedetroitbureau.com/2023/07/can-canoo-cancel-cash-concerns/