The reply might be never. Not unless they work for the federal government.
The struggling EV startup has been on the verge of running out of cash since last yr. Its money burn stays high, and analysts say it’s in danger for insolvency. Indeed, Canoo’s stock has been trading for lower than a dollar, putting it vulnerable to being delisted from the stock exchange. But despite its financial woes, the federal government is greater than blissful to proceed to do business with the corporate.
Today, Canoo announced it had successfully delivered three crew transportation vehicles to NASA to be used within the agency’s Artemis mission to the Moon. The vehicles were delivered to NASA’s Kennedy Space Center in Florida, where they might be used to move the astronauts to the launch pad for the Artemis lunar missions starting next yr.
Today, Canoo announced it had successfully delivered three crew transportation vehicles to NASA to be used within the agency’s Artemis mission to the Moon
Canoo has also supplied EVs to the US Army for “evaluation and demonstration.” Principally, the Army is testing the corporate’s Light Tactical Vehicle (LTV) to see whether it desires to order more of them for military purposes. The LTV is built on the identical platform as Canoo’s Duplo toy-looking EV prototype truck that was first revealed in 2021.
It’s quite the pivot for the six-year-old company, which originally launched in a virtually zero-interest rate environment together with over a dozen other EV startups that every one had dreams of becoming the subsequent Tesla. Canoo planned to fabricate electric vans and trucks for patrons enthusiastic about outdoor adventures — principally the identical pitch as Rivian, which has also struggled but is now seeing its deliveries increase.
The automaker has several EVs within the works, including the MPDV, a multi-purpose delivery van, and the Canoo Pickup Truck. The toyish truck showed just how far Canoo is willing to push the design of the microbus-style vehicle it first debuted back in 2019, which it originally planned to sell on a subscription-only basis.
It’s unclear whether NASA or the Defense Department is worried about Canoo’s gloomy financial outlook or how a possible Chapter 11 filing could affect its ongoing projects for the federal government. Neither agency responded to requests for comment.
If Canoo’s financial outlook continues to worsen, its dreams of becoming the subsequent Tesla may never be realized. But when NASA, the US Army, and other agencies see value in Canoo’s EVs, the corporate may very well grow to be more like Elon Musk’s other company, with its bevy of lucrative government contracts: SpaceX.