Canoo Electric Vehicles selects Oklahoma for plant

[shawnw]

So would Apple get the incentives the state has promised Canoo or would an acquisition invalidate that?

[BG918]

probably means they just move the engineers to their other facilities and still means nothing gets built in Oklahoma. hope i'm wrong, but that is how i imagine it working out

EDIT: lol read the article after i posted. and it pretty much says the same thing i did, that Apple probably wants to do it to just get more tech and engineers for it's existing work

That's a distinct possibility. They also could utilize the Pryor manufacturing plant (where sitework has already started) to get their cars to market faster, in addition to tapping into the numerous incentives offered. IF Panasonic builds their battery plant at Mid-America it would make sense to locate the manufacturing nearby.

[shavethewhales]

I definitely wouldn't assume that Apple would want to build those ugly canoo cars, but if they did want to start production on something in the near future I'd hope that means OK has an in with them. Obviously OK is willing to do major deals, and companies see the value in the MidAmerican Industrial Park area. Having Apple and Panasonic working in the area would be huge. Even just one of those becoming reality would be huge.

[shawnw]

https://inhabitat.com/nasa-contracts...is-astronauts/

[shartel_ave]

I definitely wouldn't assume that Apple would want to build those ugly canoo cars, but if they did want to start production on something in the near future I'd hope that means OK has an in with them. Obviously OK is willing to do major deals, and companies see the value in the MidAmerican Industrial Park area. Having Apple and Panasonic working in the area would be huge. Even just one of those becoming reality would be huge.

I love the way those vehicles look!

[Plutonic Panda]

I love the way those vehicles look!

I do too.

[Jeremy Martin]

https://jalopnik.com/canoo-ceo-repor...ted-1848941486

[LocoAko]

https://tulsaworld.com/business/loca...28edd01aa.html

[formerly405Tulsan]

There is life! Walmart agrees to buy 4,500 of their vans.

https://www.cnbc.com/amp/2022/07/12/...k-jumping.html

[BG918]

There is life! Walmart agrees to buy 4,500 of their vans.

https://www.cnbc.com/amp/2022/07/12/...k-jumping.html

Makes sense with the HQ move to Bentonville. Whatever it takes to keep them afloat and get the Oklahoma plant up and running.

[BG918]

There is life! Walmart agrees to buy 4,500 of their vans.

https://www.cnbc.com/amp/2022/07/12/...k-jumping.html

Makes sense with the HQ move to Bentonville. Whatever it takes to keep them afloat and get the Oklahoma plant up and running.

[gopokes88]

Great news for them. I was wrong, they can avoid bankruptcy now.

Exactly what they needed.

[PhiAlpha]

If Walmart is getting into local delivery, this was a solid move for them especially if gas prices remain high.

Hopefully Canoo can get more commitments like this and the NASA deal (obviously the Walmart one is much more important). If they can, they’ll be in good shape to at least get up and running and get there product to market.

[Jersey Boss]

Apparently Wally made some conditions as well as safe guards with this purchase that was revealed yesterday.

https://electrek.co/2022/07/13/canoo-walmart-stock/
July 13 update: Upon inspection of Canoo’s official 8-K filing with the SEC, there is some fine print we were unaware of when news of the purchase agreement went live yesterday. According to the terms of the EV purchase agreement, a Warrant Issuance Agreement was also included, giving Walmart the option to exercise the purchase of of 61,160,011 shares of fully paid and non-assessable shares of the Canoo’s common stock at a price of $2.15 per share. Per the filing:

The Warrant has a term of ten years and is vested immediately with respect to 15,290,003 shares of Common Stock. Thereafter, subject to the stockholder approval described below, if applicable, the Warrant will vest quarterly in amounts proportionate with the net revenue realized by the Company and its affiliates from transactions with Walmart or its affiliates under the EV Fleet Purchase Agreement or enabled by any other agreement between the Company and Walmart, and any net revenue attributable to any products or services offered by Walmart or its affiliates related to the Company or its affiliates, until such net revenue equals $300 million, at which time the Warrant will have vested fully.

Under the Warrant Agreement, the Company shall, as promptly as reasonably practicable following the date of the Warrant Agreement and, in any event, no later than the Company’s 2023 annual meeting of stockholders, convene and hold a meeting of stockholders to consider and vote on the issuance of the Warrant in respect of any shares of Common Stock in excess of 53,852,492 shares (which represents more than 20% of the Company’s outstanding Common Stock as of the date of the Warrant Agreement), pursuant to the applicable rules of the NASDAQ Global Select Market. In the event that stockholder approval is not obtained, in lieu of any shares which would have been issued to Walmart, the Company is required to pay to Walmart an amount in cash equal to the product of: (i) the excess of (x) the 30-day volume weighted average price per share as of the day immediately preceding the applicable exercise date and (y) the exercise price, times (ii) the number of shares that would have been issued at such applicable exercise date if stockholder approval had been obtained.

Should it exercise its warrants, Walmart can receive common stock equal to 20% of the company, a possible hint that Canoo was running out of options when it made the deal. Neither company has offered a comment on this agreement, nor has Walmart exercised its warranted shares yet.

We also noticed that under the terms of the purchase agreement with Walmart, Canoo must refrain from any business whatsoever with Amazon or its subsidiaries. Understandable. See below:

Under the EV Fleet Purchase Agreement, the Company has agreed that, for the duration of the agreement, it will not enter into any agreement for any services involving the design, manufacture, consult, advice, lease, or sale of EVs to, or issue any equity, equity-linked or debt securities of any type, or enter into any agreement for the purpose of transferring control of the Company to, Amazon.com, Inc., its subsidiaries, or affiliates.

[David]

I'd be much more optimistic about Canoo being anything other than vaporware if Walmart strong-arms them into being their own personal electric vehicle manufacturer, which rather looks like what is happening.

[Pete]

It sounds like Walmart can easily take them over if they don't like the way things are going.

This is probably the best development that could be hoped for considering the company's recent parade of bad news.

[Midtowner]

Back in college, I drove a Honda Element. The Canoo car designs are reminiscent of what I liked about that car. And if they keep their pricepoint around $35K and can do it profitably, they're going to be very successful and I'll likely be a customer.

[formerly405Tulsan]

More news. Canoo to make one vehicle for the US army. Better than zero I guess!

https://electrek.co/2022/07/14/canoo-us-army/amp/

[Jersey Boss]

This is not a good look going forward.
Reported yesterday on Tulsa 6.
The company lost millions in 2nd q

https://www.newson6.com/story/62f1d3...or-2nd-quarter

[shavethewhales]

^Once again though, they haven't made it to the revenue generating stage yet. They are going to be showing losses for a long time. This is "normal" for this kind of company during the start up stage. Uber still hasn't posted a profit yet to my knowledge. Amazon took a long time to post profits, IIRC.

That's not to say they aren't on shaky ground, as most startups of this nature run out of money before they can start generating serious revenue. It's just that it's not as bad a "look" as you might think. If they can get any amount of production going this year, they can limp forward.

[Midtowner]

^Once again though, they haven't made it to the revenue generating stage yet. They are going to be showing losses for a long time. This is "normal" for this kind of company during the start up stage. Uber still hasn't posted a profit yet to my knowledge. Amazon took a long time to post profits, IIRC.

That's not to say they aren't on shaky ground, as most startups of this nature run out of money before they can start generating serious revenue. It's just that it's not as bad a "look" as you might think. If they can get any amount of production going this year, they can limp forward.

They should be fine. Especially with the investment by Wal-Mart and their fleet committments once they are producing vehicles.

Also, if you've looked at some of their vehicles, if their suggested price remains the same, they are some ridiculously utilitarian vehicles with a ton of cool uses. Their pickup truck is pretty awesome.

[shawnw]

So it's not weird that they are outsourcing the build of the promised vehicles for walmart? I have no idea, legit question.

[PhiAlpha]

They should be fine. Especially with the investment by Wal-Mart and their fleet committments once they are producing vehicles.

Also, if you've looked at some of their vehicles, if their suggested price remains the same, they are some ridiculously utilitarian vehicles with a ton of cool uses. Their pickup truck is pretty awesome.

initially I thought they were pretty ugly but I’ll admit they're growing on me. Perfect cars for a local delivery fleets like Walmart seems to want to use them for.

[PhiAlpha]

So it's not weird that they are outsourcing the build of the promised vehicles for walmart? I have no idea, legit question.

Would seem to make sense if they don’t have a plant up and running yet.

[Jersey Boss]

^Once again though, they haven't made it to the revenue generating stage yet. They are going to be showing losses for a long time. This is "normal" for this kind of company during the start up stage. Uber still hasn't posted a profit yet to my knowledge. Amazon took a long time to post profits, IIRC.

That's not to say they aren't on shaky ground, as most startups of this nature run out of money before they can start generating serious revenue. It's just that it's not as bad a "look" as you might think. If they can get any amount of production going this year, they can limp forward.

Thanks.