EV maker Canoo slashes spending for second half of 2023, forecasts smaller loss

Canoo

14/11/2023 23:20

Nov 14 (Reuters) - Canoo  GOEV.O  on Tuesday slashed
spending plans for the second half of the year amid a market
slowdown for electric-vehicle (EV) sales and forecast a smaller
core loss in a tight funding environment.
    The EV maker expects capital expenditure of $30 million to
$40 million in the second half of 2023, compared with its prior
forecast range of $70 million to $100 million.
    Automakers such as Tesla  TSLA.O , Ford  F.N  and General
Motors  GM.N  have been cautious about expanding EV production
capacity amid economic uncertainties.
    Canoo projects core loss to be between $85 million and $105
million for the second half, versus its previous range of $120
million to $140 million.
    The company, which has contracts with the U.S. Defense
Department for supply of advanced battery packs, and Walmart
 WMT.N  and NASA for supplying EVs, said its loss narrowed to
$112 million in the third quarter, compared with $117.7 million
a year earlier.
    Canoo said its first revenue was generated in July when it
delivered its first three NASA vehicles.
    Its revenue came in at $519 million. Adjusted loss per share
was 6 cents, compared with LSEG estimates of a 12-cent loss.
    "We are now in our manufacturing and revenue-generation
phase, while we still have things left to prove," said CEO Tony
Aquila.
    Its cash and cash equivalents were $8.3 million as of Sept.
30, compared with $5 million in the preceding three months.
    Canoo last week unveiled the "American Bulldog" electric
pickup truck, looking to further its push into the American
market where pickups are among the top-selling vehicles.
    The company also said it delivered its first "Made in
Oklahoma" EVs to the state government.
    "We are continuing to grow our presence in Oklahoma, and by
the end of Q4 '23, target 20% to 25% of our total workforce will
be Oklahomans," Aquila added.

 (Reporting by Samrhitha Arunasalam in Bengaluru; Editing by
Shilpi Majumdar)
 ((Samrhitha.A@thomsonreuters.com))