The actions of Canoo Inc. (NASDAQ:GOEV) fell in pre-market trading on Tuesday, after the electric vehicle company filed for Chapter 7 bankruptcy.
What happened : The filing, filed in the United States Bankruptcy Court in Delaware, allows for the initiation of the liquidation of Canoo’s assets under the supervision of a court-appointed receiver.
The company’s inability to secure crucial financial support, including from the U.S. Department of Energy’s Loan Program Office, explains the decision.
Despite its partnerships with organizations as prestigious as the NASAthe United States Department of Defense (DOD), the United States Postal Service (USPS) et Walmart Inc. (NYSE:WMT), Canoo has struggled to attract the financial support needed to continue operations.
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Why it matters : Executives had explored the possibility of potential funding from foreign sources, but these efforts also proved unsuccessful.
Tony Aquilapresident and CEO, expressed his deep disappointment at the company’s bankruptcy. He acknowledged that the company believed in its mission, but recognized that the business could not continue without sufficient capital.
Canoo will immediately cease operations, and the bankruptcy court-appointed receiver will oversee the liquidation process.
-While the shutdown marks the end of Canoo’s journey, the company’s legacy includes its innovative approach to electric vehicles, with notable contracts from government and commercial entities.
Canoo has lost more than 98% of its value over the past year, according to Benzinga Pro.
Price movement Canoo shares fell more than 69% in pre-market trading on Tuesday.
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Image: Courtesy of Canoo
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