Canoo was founded in 2017 and brought a manufacturing plant and battery facility to Oklahoma in 2023. The company has since faced financial difficulties and lawsuits from vendors, resulting in pausing its operation and temporarily suspending employees without pay.
“We regret having to furlough our employees, especially during the holidays, but we have no choice at this point,” a news release states. “We are hopeful that we will be able to bring them back to work soon.”
Canoo lost about $800 million between 2022 and 2024, according to a filing with the Securities and Exchange Commission. Reporting from nonprofit news outlet The Frontier shows the company may have to repay the state $1 million for failing to meet its requirements to keep the cash.
The money was from the state’s Quick Action Closing Fund, which incentivizes companies to relocate or expand in Oklahoma.
The company is also facing lawsuits from vendors in Oklahoma, California and Michigan over unpaid bills, The Frontier found.
Canoo manufactures electric cargo and fleet vehicles and is headquartered in Justin, Texas. In 2023, Oklahoma state agencies spent $119,850 on three of the vehicles, a move lauded by Gov. Kevin Stitt.
“As we find new efficiencies within the fleet, Canoo’s new Oklahoma-made electric vehicles align perfectly with our fleet modernization goals, and I couldn’t be more excited to see them on the roads,” he said in a December 2023 news release.
Canoo’s Chief Executive Officer Tony Aquila did not immediately respond to a request for comment.
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