Canoo expands markets but still struggles for cash

Leadership at electric vehicle maker Canoo are banking on contracts with the U.S. Postal Service and entering the car market in Saudi Arabia will improve the company’s finances.
In the past week, Canoo filed a report with the Securities and Exchange Commission showing a net loss of nearly $111 million in the first quarter of the year, an increase from the estimated $91 million it lost a year earlier.
Still, the company boasted of a 28% improvement over a year ago in its quarterly adjusted EBITDA of $48.3 million. The first quarter EBITDA was also 11.5% or $6.3 million better than the last quarter of 2023.
Canoo’s adjusted net loss per share was $1.13 a share or about 35% improved over the $1.73 lost in the fourth quarter 2023.
“We are proud that our LDV190 vehicles have been delivered to the USPS South Atlanta Sorting and Delivery Center and are already delivering mail. These vehicles speak to the differentiation of our model where we deliver unique customized configurations to meet the needs of our large fleet customers and their associates,” said Tony Aquila, Investor, Executive Chairman and CEO of Canoo.
The company reported progress in delivering right-hand drive LDV 190s to the U.S. Postal Service. It also entered the $30 billion TAM Saudi Arabia market with commercial vehicle sales.
The Middle East market involved a vehicle sales agreement with
Jazeera Paints, a pioneering paint manufacturer in the Gulf Cooperation Council (GCC) and Middle East and North Africa (MENA). Jazeera Paints will initially purchase 20 Canoo’s electric vehicles (EVs) into its fleet in 2024, with the option to expand up to 180 additional vehicles.