EV maker Canoo posts smaller-than-expected loss on lower costs

Canoo

14/08/2023 22:56

Aug 14 (Reuters) - Electric-vehicle maker Canoo  GOEV.O 
posted a smaller-than-expected quarterly loss on Monday on lower
research and development costs, sending its shares up 2% in
extended trading.
    The company also unveiled its new lifestyle delivery vehicle
190, that has increased payload load capacity and body length
compared with the original lifestyle delivery vehicle 130.
    Canoo's loss narrowed to $70.9 million in the second quarter
from $164.4 million a year earlier. On an adjusted basis, the
company lost 14 cents per share, compared with estimates of a
loss of 19 cents, according to Refinitiv data.
    Research and development costs fell about 67% in the
quarter, lowering operating expenses to $73.6 million from
$173.5 million a year earlier.
    Having gone public with hopes of shaking up the automobile
industry, EV startups have seen their market valuations
evaporate in the past few months as demand slows and funding
dries up in an uncertain economy.
    Canoo reiterated on Monday that it had substantial doubts
about its ability to continue operations for twelve months.
    It reported cash and cash equivalents of $5 million as of
June 30, compared with $36.6 million at the end of December.
    The company expects capital expenditure of $70 million to
$100 million in the second half of 2023.
    Canoo has contracts with the U.S Defense Department for
supply of advanced battery packs, and Walmart  WMT.N  and
National Aeronautics and Space Administration (NASA) for
supplying electric vehicles.
    "We entered the revenue and income generation phase with the
advancement of our contract with the Department of Defense, and
we delivered vehicles to NASA, " Canoo CEO Tony Aquila said on
Monday.

 (Reporting by Zaheer Kachwala in Bengaluru; Editing by Shounak
Dasgupta)
 ((Zaheer.Kachwala@thomsonreuters.com))