As the company reports its third-quarter earnings, the commercial electric vehicle company Canoo is trying to secure a deal to acquire a vehicle manufacturing facility in Oklahoma City. This was announced after confirming to the public that the company will be constructing its own manufacturing facility in Pryor, dedicated to its EV battery module.
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A VW ID Buzz, the new fully electric-driven microbus of Volkswagen Commercial Vehicles, is assemled by robots at the Volkswagen plant in Hanover, northern Germany on June 16, 2022. - The company plans to build 130,000 units of the car per year in Hanover.
Manufacturing Facility in Oklahoma City
An agreement was entered by the commercial electric vehicle company Canoo as they tried to acquire a vehicle manufacturing facility in Oklahoma City, announced during the Q3 Earnings Call. Based on a report from TechCrunch, the facility will be dedicated to the production of Canoo's electric Lifestyle Delivery Vehicle (LDV) and electric Lifestyle Vehicle (LV) SUV.
According to Chief Executive Officer Tony Aquila, the manufacturing facility contains 120+ acres and an infrastructure that is already "production-ready." The factory had easy access to road and rail as it was "strategically located." Aside from LDVs and LVs, the facility will also be accommodating a full vehicle assembly line with robotics, a paint shop, and an upfitting center.
This news was released a week after the announcement of the construction of a manufacturing facility in Pryor, Oklahoma, which will be dedicated to its EV battery module. As of now the mega micro factory is currently in the works, based on a report by Reuters. But due to economic reasons, the CEO confirmed that the construction would be delayed. Purchasing the mentioned facility above will help Canoo ramp up its production and bring its EVs to the market by 2023.
Aquila stated during the call that the company aims to start the production for LDV this November 17th for them to obtain the final certification in the first quarter of 2023. As per the report, 15 production vehicles are expected by the company to finish this year and will be given to Canoo's committed order customers, which are NASA and Walmart.
"Following these initial builds, we will then aggressively shift all our equipment and focus to our new facility during Q1 and Q2 of 2023. As we start production, we expect the first sellable vehicle deliveries to occur in the back half of Q1 and we will ramp production in 2H 2023 to 20,000 units run rate by year end," Aquila added.
Also Read: Walmart Chooses Canoo's EVs-Purchases 4,500 Delivery Vans that Runs on Electric Power
Q3 Earnings Call
Canoo announced that they have closed out the third quarter for this year with cash and cash equivalents of $6.9 million. Unfortunately, these numbers are far low than the last quarter's report of $33.8 million and the fourth quarter's report for 2021 with $224.7 million. The company has not been generating its revenue and already burned down a total of $217.9 million in less than a year.
Meanwhile, Seeking Alpha reported in transcript that a total of $109.4 million was reported for the company's loss this quarter for several operations, and GAAP net loss and comprehensive loss total $117.7 million.
Related Article: Canoo Secures 9,300 Lifestyle Delivery Vehicles Orders from Kingbee, to Possibly Double the Order
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Written by Inno Flores
