Written by Cláudio Afonso | LinkedIn | X
Electric vehicle maker Canoo reported on Wednesday its third quarter earnings results, posting $900,000 of revenue, an increase from the $605,000 posted in the second quarter of the year and 73% higher than a year ago.
Canoo said adjusted EBITDA for the third quarter was $43 million, down from $46 million in the third quarter of 2023.
The company led by Tony Aquila withdrew its 2024 revenue guidance in September, along with projections for its manufacturing run rate, vehicle production, and deliveries for 2024 and beyond. Previously, Canoo had forecasted an annual revenue between $50 million and $100 million.
“We are grateful for the support of our customers, partners, their belief in us, and in our amazing product. While we focus on our core markets we must continue to take aggressive actions to consolidate our operations, reduce costs, and catch-up to our plan. This starts from the top led by a committed Executive team, which is willing to take short-term pay cuts for long-term incentives and believes in the value we create for our customers, associates and shareholders.” said Tony Aquila, Canoo’s chief executive said.
“This will continue to be a difficult and critical period as we do everything we can to get the capital in place, bring jobs back online, and get back on track with our step-level manufacturing plan,” he added.
The company expects cash outflow to range between $30 million to $40 million while adjusted EBITDA is forecasted to be between $(30) million to $(35) million.
Earlier this month, the company reported that its Chief Financial Officer, Greg Ethridge, and General Counsel, Hector Ruiz, both resigned effective October 31.
Canoo shares traded 7% higher immediately following the results after closing 15% lower on Wednesday.
Implied volatility data indicated earlier today that the market anticipates a move of approximately 21.6%, or $0.15, following the release of results versus the median move over the past eight quarters of 6.8%.
As reported by EV earlier today, Fidelity’s subsidiary Geode Capital Management has increased its stake in Canoo by 25.6% between July and September.
The stock reached a new record low last week at $0.37 after the company announced that it is furloughing 30 factory workers in its Oklahoma plant until late January next year as a timeline for mass production start remains unknown.
In March, the Texas-based EV maker executed a 1-for-23 reverse stock split aiming to remain compliant with Nasdaq’s listing requirements.
As exclusively reported by EV on Tuesday, the UK’s largest electric fleet operator, Royal Mail, has started piloting Canoo’s electric delivery vehicles. The pilots with the British postal company began earlier this month as Royal Mail aims to further electrify its fleet of over 43,000 delivery vehicles.
Last month, Canoo said it received Individual Vehicle Approval (IVA) regulatory certification in the UK, confirming that its right-hand drive electric commercial vans meet the national technical requirements.
Last week, the startup announced it entered into a $12 million secured revolving credit facility with AFV Management Advisors, LLC, an entity founded by the company’s CEO Tony Aquila.
Two years ago, in November 2022, Canoo said it had acquired $2 billion in customer orders claiming they were ready for the start of production set for later that month.
Written by Cláudio Afonso | LinkedIn | X
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