Written by Cláudio Afonso | LinkedIn | X
The Torrance-headquartered Canoo participated in a webinar hosted by investment firm Force Family Office on Wednesday. During the event, the company’s CFO Greg Ethridge commented on Canoo‘s capital allocation and the production guidance for the next year.
Greg Ethridge emphasized Canoo’s strategic allocation of capital to maximize efficiency and profitability.
“I think that we have been judicious with capital and making sure that we’re allocating capital to the areas with most efficiency. And we’ve touched on this multiple times in our last earnings calls around being able to divert capital to buy equipment that’s going to be ultimately able to increase automation, increase profitability over time. That doesn’t happen overnight,” Ethridge remarked.
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Ethridge further highlighted that many of the newly purchased products are now being installed in Oklahoma City, integrating into Canoo’s broader supply and production processes. However, he indicated that it was premature to provide specific production guidance for 2025.
“We have not given guidance around 2025, I think it’s premature to do that. That’ll come later this year, and we need to see where we end up at the end of this year and where we are specifically on the supply chain to be able to inform us for the 2025 and guidance,” Ethridge concluded.
When asked about the capital structure of the stock, the CFO admitted that the stock “hasn’t performed well”. Earlier in the webinar, he cited Elon Musk to highlight the long term view that shareholders should have.
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On Tuesday, after the closing bell, the company filed a prospectus for the offer and sale of up to 5,571,500 shares of its common stock.
This follows an agreement with Capital OKC Alliance II Inc., which includes the potential issuance of shares pursuant to warrants and preferred stock conversion, according to the EV maker.
As reported by EV, Canoo had recently disclosed the potential sale of the shares. The shares will be issued under a securities purchase agreement dated September 29, 2023.
Additionally, Canoo reported significant stock awards granted to three top executives, as detailed in SEC Form 4 filings released last Friday.
The recipients include CFO Greg Ethridge, Senior VP and Chief Accounting Officer Ramesh Murthy, and General Counsel and Corporate Secretary Hector Ruiz.
In a strategic move last week, the company announced an agreement with logistics company Go2 Delivery for the purchase of five commercial delivery vans, with an option to acquire up to an additional 85 vans. This deal underscores Canoo’s growing footprint in the commercial EV market.
Written by Cláudio Afonso | LinkedIn | X
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