Tucked inside Canoo’s 2023 earnings report is an intriguing detail regarding the expenditure of CEO Tony Aquila’s private jet – just one of many financial disparities illuminating the dichotomy between spending and revenue at the innovative EV startup.
On Monday, Canoo published its fourth-quarter and full-year earnings for 2023 in a regulatory filing, revealing a company that is rapidly utilizing cash as it strives to establish large-scale production of its commercial electric vehicles and avoid the fate of other EV startups, such as recently bankrupt Arrival. The regulatory filing also includes a repeating “going concern” warning that has been present since 2022, as well as some progress on the financial front.
Remarkably, in 2023, the company generated $886,000 in revenue, a substantial increase from the zero dollars reported in 2022, largely due to the delivery of 22 vehicles to noteworthy entities, such as NASA and the state of Oklahoma. Additionally, Canoo was able to reduce its operating loss by almost half, from $506 million in 2022 to $267 million in 2023. While it is undeniable that these are positive developments, it is important to recognize that there is still a considerable gap between revenue and losses – the company’s total net losses in 2023 amounting to an overwhelming $302.6 million.
However, all it takes is a glimpse at the enormous expense of Canoo’s CEO’s private jet to put these “wins” into perspective. In a deal reached in November 2020, Canoo reimburses Aquila Family Ventures, an entity owned by the CEO, for use of the aircraft. In 2023, this reimbursement amounted to $1.7 million, doubling the company’s revenue. In the previous years, Canoo paid $1.3 million in 2022 and $1.8 million in 2021 for use of the jet.
Furthermore, Canoo paid Aquila Family Ventures an additional $1.7 million in 2023, $1.1 million in 2022, and $500,000 in 2021 for shared services support in its corporate office facility in Justin, Texas, according to regulatory filings.
Some may argue that these amounts are insignificant in comparison to Canoo’s projected revenue of $50 million to $100 million for 2024. Nonetheless, we have reached out to Canoo for comment and will update this post accordingly.
