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Canoo has $1 billion in “orders” but only $33.8 million in cash

COdogman

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I am rooting for these guys, but every quarter they are just circling the drain. 😬

American EV startup Canoo shared its latest report outlining its results for Q2 of 2022 as it continues to fight to stay out of the red in a race toward production. Canoo is now reporting another big loss for the quarter. And, although it has $1 billion in its sales pipeline, only a minority percentage of those commitments are binding under contract.
https://electrek.co/2022/08/08/canoo-q2-2022-report/
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Donald Stanfield

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Yeah I originally wanted one of their trucks. It looks like a Mars rover and that’s pretty badass. It’s the sort of car you wished you had as a little boy, at least I did.

The Rivian is better and actually real so I switched. Honestly if they were both available today though I would have to think about it slightly.
 
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COdogman

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Yeah I originally wanted one of their trucks. It looks like a Mars rover and that’s pretty badass. It’s the sort of car you wished you had as a little boy, at least I did.

The Rivian is better and actually real so I switched. Honestly if they were both available today though I would have to think about it slightly.
You are so right - it has a retro feel to it, like something from Buck Rogers or the Jetsons.

I didn’t place a reservation with them, but had they been as far along as Rivian I would have to give that some thought as well.
 

Friscorays

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Wonder if Walmart will get their 10,000 delivery vans from them, and if not if their might be some other up and comer EV manufacturer ready to step in and help Walmart out....
 

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Wonder if Walmart will get their 10,000 delivery vans from them, and if not if their might be some other up and comer EV manufacturer ready to step in and help Walmart out....
That would be a great test of Rivian’s independence from Amazon.
 

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They have lines of credit available up to ~$700M or so.

So they have at least 2 or 3 quarters to launch.
 
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COdogman

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They have lines of credit available up to ~$700M or so.

So they have at least 2 or 3 quarters to launch.
Yeah I saw that too. I have no information about their manufacturing capability other than what I read in these articles, but it sure doesn’t seem like they are that close to being able to churn out a few hundred vans, let alone a few thousand.
 

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They have lines of credit available up to ~$700M or so.

So they have at least 2 or 3 quarters to launch.
That’s a tall order considering they haven’t even completed their plant yet.
 

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COdogman

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I am no business guru, but it seems like this deal (to contract out building their vehicles in the beginning) should have been in the works like 3-5 years ago. Let’s say they do find someone who will do it on short notice and complete all 10,000 potential Walmart vans. Then what? The Walmart deal alone isn’t enough to save the company and it won’t really help them sell vehicles to consumers. Seems like too little too late unfortunately…
 

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They have lines of credit available up to ~$700M or so.

So they have at least 2 or 3 quarters to launch.
They will either have to secure a ton of capital, or find much more than 700M. New vehicle manufacturers need so much capital to start and scale production it is not even funny. That is why it takes so long to become profitable.

They will either find the capital they need, or some legacy OE will pick them up for their IP.
 

virgnia_rivian

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I am no business guru, but it seems like this deal (to contract out building their vehicles in the beginning) should have been in the works like 3-5 years ago. Let’s say they do find someone who will do it on short notice and complete all 10,000 potential Walmart vans. Then what? The Walmart deal alone isn’t enough to save the company and it won’t really help them sell vehicles to consumers. Seems like too little too late unfortunately…
Plus add in supply chain problems. Rivian, with a pile of cash, had trouble convincing suppliers they would pay. Imagine how this is going to go.
 
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COdogman

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Plus add in supply chain problems. Rivian, with a pile of cash, had trouble convincing suppliers they would pay. Imagine how this is going to go.
Exactly. I actually thought Fisker did a smart thing by making a deal with Magna to build their vehicles. But they had to talk with multiple companies before they found Magna. And even after signing that deal it takes years not months to produce the first cars off the line.

Canoo might already have vans/ trucks being delivered to consumers if they had done the same thing. And it would have given comfort to investors along the way. This is tough, expensive stuff these companies are trying to do. Rivian made plenty of mistakes along the way but is actually positioned to succeed if they do it right.
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