Written by Cláudio Afonso | LinkedIn | X
Canoo, the struggling electric commercial vehicle startup, reaffirmed on Wednesday its expectation for an Adjusted EBITDA loss between $120 million and $140 million for the second half of the year.
The company attributed this outlook to the “pacing of capital and supply chain harmonization.”
As of June 30, Canoo reported holding $19.1 million in cash, cash equivalents, and restricted cash.
However, the company warned that after factoring in the net proceeds from a July Private Placement Agreement (PPA) that brought in an additional $14.1 million, Canoo’s cash reserves would have stood at $33.2 million at the end of the second quarter.
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Despite the boost from the PPA, Canoo’s cash position shows the company’s urgent need to raise additional capital.
With significant losses expected in the latter half of the year and limited liquidity, the EV maker faces mounting pressure to secure new funding to sustain operations and meet its strategic goals.
At the earnings call, the company’s management said it is “in advanced stages of discussions with other sources of capital”.
Canoo reported on Wednesday its second-quarter earnings posting a record revenue of $605,000. The company did not disclose the number of vehicles delivered between April and June.
However, the chief executive Tony Aquila, said in a statement the results represent “good progress” with customers adding that they “drove more than 34,000 recent real world, industrial use miles”.
At the time of writing, shortly after the results were released, shares of the EV maker are trading 7.50% higher at $1.51 in the after-hours trading session.
Canoo’s shares closed at $1.41 on Wednesday, down 6%. The stock has lost more than 86% of its value in the last 12 months.
The stock reached a record low at $1.22 per share in March reflecting concerns over the lack of progress in the pilot programs announced over the last two years.
Written by Cláudio Afonso | LinkedIn | X
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