Canoo

[Rover]

RE Broker has sent out announcements the deal has closed.

[Soonerinfiniti]

This article says the facility is being leased...

https://electrek.co/2023/04/10/canoo...ring-facility/

[Bellaboo]

This article says the facility is being leased...

https://electrek.co/2023/04/10/canoo...ring-facility/

I read about the above mentioned lease. I also read in another article that TEREX will still lease a small part of the facility. Maybe that is where the 'lease' came from ?

[onthestrip]

This article says the facility is being leased...

https://electrek.co/2023/04/10/canoo...ring-facility/

No idea if accurate but I saw something that a company affiliated with the Canoo CEO is who bought the property and leased it back to Canoo.

[jedicurt]

No idea if accurate but I saw something that a company affiliated with the Canoo CEO is who bought the property and leased it back to Canoo.

that would make sense. it's a fairly common tactic.

[Pete]

Electric vehicle manufacturer Canoo has filed plans to convert the former Terex facility into an assembly plant at Morgan Road and I-40 in far west Oklahoma City.

An LLC that tracks back to the company's CEO had recently purchased the property and leased it to Canoo.

The manufacturing facility will be used for final vehicle assembly utilizing robotics as well as a body shop, paint shop and automated paint line, quality control, complete vehicle testing, and more.

There will also be a training center and test track.

In addition to the 500,000 square feet in existing buildings, there is the capacity to expand on the property's 120 acres. Canoo expects to employ more than 500 people in Phase 1.

Canoo has designed a modular platform to maximize interior space and their vehicles are highly customizable for both businesses and consumers.

Walmart has agreed to purchase 4,500 Evs to be used for delivery and NASA will use their vehicles to transport the Artemis crew for its moon mission.

[Jake]

Cool to see the plans, hope it all works out.

Side note: "Mega Micro" is just funny to me.

[catch22]

That’s fantastic news.

With the future potential Pryor plant being the largest, what is that spell for this Terex facility? The production numbers from Pryor eclipse this facility, where it would almost seem to not be worth running both unless this facility could pivot to some other role with the company?

[Pete]

That’s fantastic news.

With the future potential Pryor plant being the largest, what is that spell for this Terex facility? The production numbers from Pryor eclipse this facility, where it would almost seem to not be worth running both unless this facility could pivot to some other role with the company?

Pryor is to be a battery plant.

They have talked about an assembly plant in Pryor but if that was ever to happen, that would be down the road.

[W8N2SKI]

With the future potential Pryor plant being the largest, what is that spell for this Terex facility? The production numbers from Pryor eclipse this facility, where it would almost seem to not be worth running both unless this facility could pivot to some other role with the company?

"Long term, the Oklahoma City facility announced Wednesday will focus on producing defense and specialty products, said Aquila. In April, NASA selected Canoo to provide crew transportation vehicles for the crewed Artemis lunar exploration launches, and in July, the U.S. Army selected Canoo to supply EVs for analysis and demonstration." - https://techcrunch.com/2022/11/09/ca...oklahoma-city/

[Just the facts]

Is any of this stuff new or just a rehash of what they put out last year? I guess if nothing else it pumped up their stock price a little.

[Pete]

Is any of this stuff new or just a rehash of what they put out last year? I guess if nothing else it pumped up their stock price a little.

What's new is 1) they bought the Terex property; and 2) filed building permits to convert to an assembly plant.

That's actual investment and action after a lot of talk.

[catch22]

Thanks I was just going off of their infographic in your post. 2024+ 400K units I assumed meant vehicles. Obviously the 2024 number may be a bit enthusiastic.

[dheinz44]

They now have several positions posted on their careers page for the Oklahoma City plant

[Laramie]

CANOO INC. ANNOUNCES FIRST QUARTER 2023 RESULTS
https://www.prnewswire.com/news-rele...301825198.html

2023: Losses exceeding $90 million reported by Oklahoma Journal Record.

Tulsa World
Canoo reports loss of $164 million in second quarter From Staff Reports Aug 8, 2022 Updated May 10, 2023: https://tulsaworld.com/business/loca...a1e887da2.html

.

.

[Just the facts]

They better come up with some money quick. They have about 30 days worth on-hand.

[runOKC]

They better come up with some money quick. They have about 30 days worth on-hand.

I wonder how much of the $150 million in “on and off balance sheet financing” is credit lines they can tap into.

[Just the facts]

I wonder how much of the $150 million in “on and off balance sheet financing” is credit lines they can tap into.

I don't know but they said they only $6.5 million in cash and cash equivalents. Even if they had the full $150 million they are losing about $100 million a quarter. The Motley Fool had an article yesterday saying they didn't have enough money to last thru the end of the year.

https://www.fool.com/investing/2023/...2-early-today/

From the article: "Canoo ended Q1 with only $6.7 million in cash and will require additional funds to invest in R&D, start production, and even run its day-to-day operations. Heck, Canoo just said its existing cash is "not sufficient to support planned operations for the next 12 months." I wouldn't touch such a stock with a 10-foot pole, no matter how promising its goals."

[PhiAlpha]

I think Canoo’s partnerships with Walmart and nasa will pull them through this but in general I think things are going to be fairly difficult for anyone manufacturing electric cars for the next 5-10 years. Toyota’s put out several pretty good and logical articles about why they aren’t jumping in both feet first into the electric market and are sticking to gasoline and hybrid powered cars for awhile. Tesla got the first mover advantage and it’s going to be tough for others to catch-up until the market and infrastructure start maturing.

[Just the facts]

The biggest challenge for EV-only manufacturers is that their main source of revenue, selling their carbon offset credits, isn't needed anymore.

[PhiAlpha]

The biggest challenge for EV-only manufacturers is that their main source of revenue, selling their carbon offset credits, isn't needed anymore.

From a financial perspective that’s an issue for sure but I think lack of current market and infrastructure is a bigger one. If you’re selling tons of your cars at a profit, the carbon credits don’t matter as much anymore. Everyone is trying to force this stuff over the chasm with the flip of a switch and it just isn’t there yet. I have some major concerns about raw material availability for batteries as well and if feels like everyone pushing EVs is either oblivious to that or acting conveniently unaware. China and a bunch of countries that we aren’t getting along with all that well currently have a ton of the supply and while we do have some resources of our own here…the federal government has been making moves to restrict mining in some key areas. If China cuts us off at some point due to geopolitical conflict, it’s going to be a massive problem. I think people have a lack of understanding of the battery raw material sourcing/mining process and it has a strong possibility of ending up volatile similar to oil and gas if we don’t start sourcing/mining more of it here or in countries not controlled by China and other non-allies.

[Just the facts]

Tesla is struggling right now with the loss of their carbon-selling business. Raise prices to increase revenue and sales drop off significantly, lower prices to gain market share and Wall Street flips out.

[PhiAlpha]

Tesla is struggling right now with the loss of their carbon-selling business. Raise prices to increase revenue and sales drop off significantly, lower prices to gain market share and Wall Street flips out.

I guess my point is…manufacturers don’t need credits currently to be profitable selling gasoline and hybrid vehicles. If the market growing/maturing as fast as people want us to believe it is and infrastructure was in place to handle the growth…they wouldn’t need the credits to be profitable.

[Just the facts]

I guess my point is…manufacturers don’t need credits currently to be profitable selling gasoline and hybrid vehicles. If the market growing/maturing as fast as people want us to believe it is and infrastructure was in place to handle the growth…they wouldn’t need the credits to be profitable.

I agree. Ford uses their EV division carbon-credits to off-set the penality for only making SUVs, and uses the high profit margins on the SUVs to subsidize the EV division. EV-only can't do that. Ford can't do it forever either.

Back to Canoo, they said they will produce 20,000 cars by the end of the year, and it is mid-May now and they don't have any place to make their first car yet.

[Pete]

Canoo is set to report their 2nd quarter financials on 8/14.

Last quarter:

The Texas-based company warned investors in May that it might not be able to meet its financial obligations, saying it had access to $600 million in funding but added it had "substantial doubt" about continuing as a going concern.