Photo: Canoo
EV startup Canoo, which aims to bring its boxy-shaped “loft on wheels” to market in 2022, followed by a string of other vehicles based on the same platform, is now the subject of an extensive investigation by the SEC. The investigation comes on the heels of the start of pre-orders for the Canoo Lifestyle Vehicle.
News of the investigation is reported by TechCrunch, which says that the U.S. Securities and Exchange Commission will be looking at all operations, as well as recent mergers and executive departures. Canoo has been around since 2017 (and since 2019 under this name), and this past year has been a string of ups and downs.
Last August, Canoo merged with Hennessy Capital, with the deal estimated at $2.4 billion offering the EV startup instant access to $600 million in cash for development. The SEC is looking at the initial public offering before the merger, the merger itself, and the business model. Canoo first made waves for announcing it would offer the Canoo EV on a subscription-only model but has since recanted and is planning on selling it as a passenger vehicle.
Canoo also said it would offer its platform (the SkateKart) and engineering to other carmakers and then had a change of heart, which led to a potential deal with Hyundai falling through. Several executives, including co-founder and CEO Ulrich Kranz (formerly a Faraday Future executive), have left. Canoo has been named defendant in at least a couple of class-action lawsuits from investors.
The SEC will be looking at all these. In a statement, Canoo says it’s complying with the investigation and goes to great lengths to highlight that its existence does not mean proof of guilt.
News of the investigation comes just one day after Canoo finally revealed pricing for its first EV, the formerly dubbed “loft on wheels.” With subscription plans out the window, it will hit the market at $34,750, with the higher-specced version going as high as $49,950. Pre-orders are now underway, with a $100 reservation fee, and deliveries are estimated for next year.
Last August, Canoo merged with Hennessy Capital, with the deal estimated at $2.4 billion offering the EV startup instant access to $600 million in cash for development. The SEC is looking at the initial public offering before the merger, the merger itself, and the business model. Canoo first made waves for announcing it would offer the Canoo EV on a subscription-only model but has since recanted and is planning on selling it as a passenger vehicle.
Canoo also said it would offer its platform (the SkateKart) and engineering to other carmakers and then had a change of heart, which led to a potential deal with Hyundai falling through. Several executives, including co-founder and CEO Ulrich Kranz (formerly a Faraday Future executive), have left. Canoo has been named defendant in at least a couple of class-action lawsuits from investors.
The SEC will be looking at all these. In a statement, Canoo says it’s complying with the investigation and goes to great lengths to highlight that its existence does not mean proof of guilt.
News of the investigation comes just one day after Canoo finally revealed pricing for its first EV, the formerly dubbed “loft on wheels.” With subscription plans out the window, it will hit the market at $34,750, with the higher-specced version going as high as $49,950. Pre-orders are now underway, with a $100 reservation fee, and deliveries are estimated for next year.
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