EV startup Canoo files for bankruptcy right before Donald Trump’s inauguration
Story by Christiaan Hetzner • 16h
The outlook for EVs is darkening under President Donald Trump.
The decision by Canoo not to seek protection from creditors but to enter liquidation suggests there was no confidence among the board or investors that the company could restructure its balance sheet amid the darkening financial climate in the U.S. for EVs.
Another electric vehicle startup to emerge from the pandemic-era boom just bit the dust.
Right before EV critic Donald Trump takes office as the next President, Texas-based Canoo informed shareholders on Friday it was ceasing all operations and filing for bankruptcy.
The decision not to seek protection from creditors but rather enter Chapter 7 liquidation suggests there was no confidence on the part of the board or investors that it should or even could attempt to restructure its balance sheet amid the darkening financial climate in the U.S. for EVs.
The startup justified the drastic move by citing failed talks to secure a last-moment government lifeline—the same kind of Department of Energy loan just extended to larger peer Rivian, sparking controversy. Talks to raise capital abroad also failed.
https://www.msn.com/en-us/money/other/ev-startup-canoo-files-for-bankruptcy-right-before-donald-trump-s-inauguration/ar-AA1xxoXr?ocid=msedgdhp&pc=HCTS&cvid=d440f03387454d18b18f6aa5601a07c9&ei=62
