Electric vehicle (EV) startup Canoo has announced a significant change in its operations, relocating its headquarters from Torrance, California, to Justin, Texas. This decision comes as the company continues facing challenges in production and executive turnover.
History of Canoo
Canoo, initially founded as Evelozcity in 2017, gained attention when it introduced its uniquely designed lifestyle vehicle in 2019. Later, the startup unveiled a distinct pickup truck. However, these innovative vehicles have struggled to reach mass production. Under the leadership of CEO Tony Aquila since 2021, Canoo shifted focus to commercial variants, leading to the limited delivery of lifestyle delivery vehicle (LDV) vans to fleet customers.
Relocation to Texas
According to TechCrunch, Canoo announced the closure of its Los Angeles-area office during a company-wide meeting. The new headquarters in Justin, Texas, is part of the Dallas-Fort Worth metropolitan area, where the company has maintained an office for several years. Additionally, employees at the California facility are being offered relocation options to either Texas or Oklahoma, where Canoo is constructing a factory for its EV lineup assembly.
Executive Departures
The news of the headquarters relocation coincides with the departure of Sohel Merchant, Canoo’s Chief Technology Officer and a founding member. Merchant’s exit is the latest in a string of executive departures, leaving Christoph Kuttner as the only remaining original founding team member. Previous exits include two former CEOs, Stefan Krause and Ulrich Kranz, and Chief Designer Richard Kim.
Challenges Ahead
Canoo faces a challenging road ahead, particularly with its financial situation. Despite producing a small number of vans and building right-hand-drive LDV190s for the U.S. Postal Service, the company has reported having only $19.1 million as of June 30th. Furthermore, the Pryor, Oklahoma, plant is not fully operational. Additionally, Canoo recently acquired assets from the failed British EV startup Arrival, which went bankrupt earlier this year.
Conclusion
The relocation to Texas represents a strategic move for Canoo as it navigates operational and financial hurdles. The upcoming months will be crucial in determining whether the company can stabilize its operations and achieve its production goals.
