In a surprising move, Canoo has announced its departure from California and its relocation to Texas, along with changes in its executive team and business model. This decision comes as the electric vehicle startup continues to face challenges in ramping up production and commercializing its vehicles.
Two of Canoo’s three founders have recently left the company, including chief design officer Richard Kim and CTO Sohel Merchant. This departure leaves only chief engineer Christoph Kuttner as the sole remaining original executive at the company. The departure of key executives has raised questions about the direction and stability of Canoo as it transitions to a new business model focused on commercial applications.
One of the major changes in Canoo’s business strategy is its shift from selling stylish EVs on a subscription basis to focusing on commercial vehicles. Under the leadership of CEO Tony Aquila, the company has supplied vehicles to organizations such as NASA, the U.S. Postal Service, and the U.S. Army for testing. However, Canoo has struggled to produce EVs in meaningful numbers, leading to delays in scaling up production.
The decision to relocate its headquarters to Texas is part of Canoo’s efforts to streamline operations and cut costs. The company has also considered setting up a small-scale manufacturing facility in Arkansas, with plans for larger-scale production in Oklahoma. Despite these efforts, Canoo has yet to achieve its production targets and faces challenges in delivering on its commercial commitments.
In a bid to boost its production capacity, Canoo recently acquired the remains of EV startup Arrival, including manufacturing equipment that could help it scale up production. However, the company still faces hurdles in meeting demand for its vehicles and fulfilling its orders from major customers like Walmart and the U.S. Postal Service.
Overall, Canoo’s move to Texas, changes in its executive team, and shift in business strategy reflect the challenges facing the company as it seeks to establish itself in the competitive EV market. The success of Canoo will depend on its ability to overcome production challenges, deliver on its commercial commitments, and build a sustainable business model for the future. Time will tell whether Canoo can turn the tide and emerge as a key player in the burgeoning electric vehicle industry.