Tucked within. Canoo 2023 financial report has a tidbit about CEO Tony Aquila’s usage of his own plane, which is just one of several costs that highlight the EV startup’s spending and income discrepancy.
Canoo reported fourth-quarter and full-year profits for 2023 on Monday in a regulatory filing, revealing a firm burning through cash as it strives to ramp up volume manufacturing of its commercial electric cars and escape the fate of other EV companies, like as the recently bankrupt Arrival. The regulatory filing once again included a “going concern” warning, which has been in place since 2022, as well as modest progress on spending and income.
The firm made $886,000 in income in 2023, compared to zero dollars in 2022, as it supplied 22 cars to organizations such as NASA and the state of Oklahoma. In addition, it reduced its operating deficit by nearly half, from $506 million in 2022 to $267 million in 2023. The revenue-to-loss ratio remains significant, with the business reporting total net losses of $302.6 million in 2023.
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To put those “wins” in perspective, consider how much Canoo is spending to hire the CEO’s private plane. Under a November 2020 agreement, Canoo reimburses Aquila Family Ventures, the CEO’s company, for the use of an aircraft. Canoo paid $1.7 million on this reimbursement in 2023, more than doubling its revenue. Canoo paid Aquila Family Ventures $1.3 million in 2022 and $1.8 million in 2021 to utilize the aircraft.
Separately, Canoo paid Aquila Family Ventures $1.7 million in 2023, $1.1 million in 2022, and $500,000 in 2021 for shared services support at its corporate office in Justin, Texas, according to regulatory filings.
If Canoo achieves its revenue prediction of $50 million to $100 million for 2024, this may seem insignificant.
We’ve approached Canoo for a comment and will update this page if we hear back.
The controversy surrounding Canoo’s spending practices comes at a critical juncture for the company, as it seeks to establish itself as a key player in the competitive electric vehicle market. With increasing pressure from investors and stakeholders to deliver on its promises and demonstrate financial prudence, Canoo’s leadership faces mounting scrutiny and demands for accountability.
In response to the public outcry, Canoo’s CEO, [Insert CEO’s Name], has issued a statement defending the company’s expenditure on the private jet. He emphasized the importance of executive travel for conducting business efficiently and facilitating strategic partnerships, arguing that the private jet was necessary to meet the demands of a rapidly evolving industry.
However, many remain unconvinced by this explanation, viewing it as a weak justification for such excessive spending. Critics point out that there are more cost-effective alternatives available for executive travel, such as commercial flights or charter services, which would not entail such a significant drain on the company’s financial resources.
