Canoo furloughs workers at Oklahoma City EV plant
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OKLAHOMA CITY — Canoo, the electric vehicle startup with plans to produce EVs in Oklahoma City and EV batteries in Pryor, has furloughed employees in Oklahoma City as it attempts to raise money to continue as a going concern.
In a statement released to local media on Friday, Canoo said the cost-saving measure affecting 30 of its factory workers would last at least 12 weeks. Those employees were advised how to file for unemployment benefits.
In a report to security holders dated Oct. 8 and included on the company’s website among Securities and Exchange Commission filings, Canoo said tight finances may require it to “terminate or significantly curtail” its operations.
“Our management has performed an analysis of our ability to continue as a going concern and has identified substantial doubt,” it said. “If we are unable to obtain sufficient additional funding or do not have access to additional capital, we will be unable to execute our business plans.”
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In its statement about the layoffs, Canoo said the decision reflected a “broader realignment” of its operations and that the company remains committed to pursuing its “next phase of growth.” However, the report included as part of the SEC filing concluded that Canoo’s “ability to meet the timelines we have established for production and manufacturing milestones of our EVs is uncertain.”
Canoo occupies a 500,000-square-foot facility adjacent to Interstate 40 in western Oklahoma City. It has previously stated a goal of eventually producing 20,000 vehicles there annually.
In June 2021, CEO Tony Aquila announced Canoo’s plans for an associated “mega microfactory” at the MidAmerica Industrial Park in Pryor. However, the company later announced that Pryor operations would be limited to battery module assembly in an existing building.
The company has produced few vehicles and has not turned a profit. In its 2024 second-quarter financial statement it projected losses of $120 million to $140 million in the second half of 2024.
The company has previously announced contracts to build EVs for buyers that include the state of Oklahoma and Walmart.
In August 2023, Canoo announced that it had finalized agreements on workforce and economic development incentives from the state of Oklahoma and the Cherokee Nation for its vehicle assembly and battery module manufacturing plants. The estimated combined value of the incentives was up to $113 million over 10 years.
However, the agreements required the company to meet job creation and other benchmarks to remain eligible, and it has not been able to do so.
“Companies do not receive taxpayer dollars until they meet certain requirements, and safeguards are built into contracts that allow the state to claw back money if a company falls below its performance threshold,” said Chase Horn, public information coordinator for the Oklahoma Department of Commerce.
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