Electric vehicle maker Canoo Inc. posts 3Q earnings loss of $112M

A Canoo Lifestyles vehicle is shown, Friday, May 20, 2022 at the Canoo car manufacturing plant in Bentonville.  (NWA Democrat-Gazette/Charlie Kaijo)
A Canoo Lifestyles vehicle is shown, Friday, May 20, 2022 at the Canoo car manufacturing plant in Bentonville. (NWA Democrat-Gazette/Charlie Kaijo)

Electric vehicle maker Canoo Inc. said Tuesday that it lost $112 million during its third quarter as the company works to begin significant production in Oklahoma.

The company's results matched a consensus estimate by four analysts for the quarter ended Sept. 30, according to Yahoo Finance. Canoo reported a loss of $117.7 million, or 43 cents per share, for the quarter a year ago.

Canoo released earnings after market close on Tuesday and held a conference call with analysts shortly afterward. Canoo shares closed at 27 cents, up 1 cent or nearly 7% in trading Tuesday. Shares have traded as low as 22 cents and as high as $1.60 over the past year.

Canoo has yet to post a profitable quarter or meaningful revenue and has been burning through cash as it tries to bring its products to market.

During the Tuesday call, Canoo's President and Chief Executive Officer Tony Aquila said the company's focus on fleet and government customers will help Canoo innovate and improve its product and perfect its manufacturing process so it will be ready for the consumer market when the time comes. He said the economy has caused substantial headwinds for Canoo and the electric vehicle market in general but those challenges won't stop the company from completing its mission.

In response to analysts' questions, Aquila reiterated the company's initial target for 20,000 unit annual production and he said the company would become profitable around the 14,000 to 15,000 unit mark. Aquila has said Canoo has an order book valued at more than $3 billion, with large scale customers that include Walmart.

The company said Tuesday it delivered its first vehicles to the State of Oklahoma for use by its Office of Management and Enterprise Services. Canoo did not say how many of its multi-purpose Lifestyle Delivery Vehicles it delivered. The vehicle is the first commercial motor vehicle produced in Oklahoma since 2006, according to a release.

"We are proud to be part of this historic moment as Canoo builds momentum on its road to full-scale production," Oklahoma Governor Kevin Stitt said in a statement.

Canoo said it is hiring workers to man its Oklahoma City and Pryor facilities in Oklahoma -- a move that should eventually create more than 1,300 jobs.

In September, Canoo shifted its shares to trade on the Nasdaq Capital Market after Nasdaq put it on notice six months ago that the company no longer met certain listing requirements. The move keeps Canoo's stock trading on a 24-hour, public exchange and keeps it from over-the-counter trading, but it comes with a ticking clock of its own -- Canoo shares need to trade above $1 for 10 consecutive days over the next 180 days or face delisting once again.

Later in September, Canoo Inc. said it is working with the Pawnee Nation to facilitate job growth in the clean energy industry, the company said Thursday.

The agreement will concentrate on building workforce skills; developing suppliers for parts and services; supporting education of Pawnee students; and supplying Canoo vehicles built in Oklahoma to the Pawnee Nation.

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