Canoo is on track to start building electric vehicles this month. The EV startup announced on its third quarter earnings call that it plans to build 15 production vehicles this year and quickly ramp up production in 2023.
“We expect to achieve a 20,000 unit run rate capacity in 2023, doubling that capacity in 2024,” said Canoo CEO Tony Aquila during Wednesday’s earnings call.
Orders for its EVs have doubled to $2 billion since its second quarter report.
“We targeted, signed and announced high grade credit customers and locked +$2bn in orders, a 100% increase from Q2, on the back of a validated, real-world use case proven product, said Aquila.
The EV minivan and truck maker says it has now built 118 gamma vehicles, which is an automotive term for the final stage of the testing process before regular production begins.
EV Rider was given rare access to one of Canoo’s preproduction Lifestyle Vehicle minivans. It’s also developed a LDV (Lifestyle Delivery Vehicle), which will be produced first. Those first 15 LDV production vehicles are scheduled to go to committed order customers like NASA and Walmart.
Canoo’s CEO says his company now has the building blocks in place for long-term growth.
“We were ready for the Inflation Reduction Act, Or IRA. And our leveraging our platform that is 92% sourced in the US or allied nations targeting high grade commercial customers. We are already positioned to choose who we partner,” said Aquila.
Canoo announced it has entered into an agreement to acquire a vehicle manufacturing facility in Oklahoma City. The plant is an existing commercial site with more than 630,000 square feet of move-in ready space.
“The Oklahoma City facility has significant room for expansion and is a proven location for large scale production, with an established transportation ecosystem, including rail,” Aquila said.
Canoo describes the Oklahoma City plant as “production ready” and says it will be powered by clean energy.
The company released a rendering of the factory on the heels of announcing plans for a battery plant last week.
Canoo has partnered with Panasonic for battery production with Hydro-Power from the Grand River Dam Authority.
So far Canoo has expanding fleet orders coming in with Kingbee & Zeeba placed binding orders for 12,300 units with an option to add 11,750 units and Walmart saying it will buy 4,500 Canoos.
Related: Canoo financial reports
Canoo’s third quarter financial highlights were as follows:
- As of September 30, 2022, Canoo had access of up to $200.0 million through an “at-the-market offering” program, and cash and cash equivalents of $6.8 million.
- GAAP net loss and comprehensive loss of $117.7 million and $407.5 million for the three and nine months ended September 30, 2022, compared to a GAAP net loss and comprehensive loss of $80.9 million and $208.7 million for the three and nine months ended September 30, 2021. The GAAP net loss and comprehensive loss for the three and nine months ended September 30, 2022 included a loss of $2.1 million and a gain of $22.9 million on the fair value change of the contingent earnout shares liability, respectively.
- Adjusted EBITDA of $(80.8) million and $(348.1) million for the three and nine months ended September 30, 2022, compared to $(85.8) million and $(212.3) million for the three and nine months ended September 30, 2021, respectively.
- Net cash used in operating activities totaled $329.9 million for the nine months ended September 30, 2022, compared to $180.6 million for the nine months ended September 30, 2021.
- Net cash used in investing activities was $58.4 million during the nine months ended September 30, 2022, compared to net cash used in investing activities of $100.1 million during the nine months ended September 30, 2021.
Fourth Quarter 2022 Business Outlook
Canoo expects:
- Operating Expenses (excluding stock-based compensation and depreciation) of: $70 million to $90 million
- Capital Expenditures of: $30 million to $50 million
In Thursday morning trading Canoo stock had risen 5.14% to $1.24.
Canoo also released a new video to mark its accomplishments