Canoo, The Latest EV SPAC Facing Bankruptcy
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- เผยแพร่เมื่อ 20 พ.ค. 2024
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In this video we analyze the electric vehicle maker Canoo including its precarious financial position.
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0:00 - 2:16 Intro
2:17 - 4:27 SPAC
4:28 - 8:40 Changes and delays
8:41 Brink of bankruptcy - ภาพยนตร์และแอนิเมชัน
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No such thing as environmentally friendly leather. And who is bemoaning their inability to fit a passport in their wallet?
@@jet96 I wasn't until I saw this ad. I tend to keep mine in a separate bigger travel wallet which was too big for my pockets. As for enviromentally friendly leather, that animal ain't breathing out anymore carbon is it? LMAO.
It's not a good sign when the CEO's jet travel spending for the year is double its annual revenue..
Lmao the fact that an investor out there just got owned this hard is hilarious
The second I saw the promotional video I knew this was a soulless hustle, zero passion, you can’t have a startup with 100% employees.
The CEO forgot that he is not with BMW anymore 😂
😂😂
I don't know the guy (obviously!?) but imagine he is making whoopie before the inevitable prison sentence.
It's funny that the CEO's jet likely puts out more CO2 than the whole fleet of their vehicles can supposedly save.
You can ALWAYS judge a startup be the behavior of the senior leadership. If they’re busy with their personal lives and living high on the backs of shareholders it’s a problem.
With a lot of start ups most employees have job titles including the word "executive"
In gaming, shareholders are our enemy.
Aren't 'community managers' the worst part of game studios ? (Openly racist and sexist Twitter posts from most of them)
...the worst part after the racist DEI enforcers like SBI and BBG that is...
....I mean, have you seen Luke Skywalker in drag as the main character of their latest, soon to be released, Star Wars game...?
...Transsexual Luke Skywalker is NOT a character I wanna be looking at throughout an entire game...
Sounds like they might be sinking. At least they have a canoe
"can?"... "noooooo"
Good one.
But no paddle
I just heard a drum and a cymbal.
@@jdsheleg8332 A good follow up
Somehow a tech startup made leasing cars sound more insidious by calling it a "subscription"
It is more insidious because from the way I understand it, at least with a lease you can purchase the car at the end. I dont believe that is the case for canoo, you always pay.
Subscription is associated with the free-money seeking behavior of some firms. Namely software rented on Subscription that isn't being actively supported/updated
Volvo offered a car subscription service for awhile targeting young drivers. It included maintenance and insurance and was an enormous ripoff. It was like 800/mo for a car you could get on lease for like 300/mo.
Lots of companies give cars for day or week long 'subscriptions'.
It's just called renting.
@@Swiggityswaggeri think its the insurance thats the issue. Insuring 18 yo males is expensive
Lied in a SPAC, you say? Surely not. Who would have guessed? 🤔
Buying a SPAC stock today is effectively just buying into a ponzi scheme hoping to get in early enough to win at the expense of later speculators.
And yet, Henrik Fisker did the same and no chargers so far…
@@tribalypredisposed they were charged?
It's just kinda unreal at how big some of these scam companies get. I don't mind a bull market, but please, not another SPAC bubble ever again
@@tribalypredisposed not to mention they also clearly mislead investors when they claimed they made a "big breakthrough" with solid state batteries which they implied would let them leapfrog the entire competition, only to quietly abandon all research in solid state batteries just a few months later after admitting that the first 80% of a solid state battery is really easy, but the last 20% is really hard if not impossible.
The CEO forgot that he is not with BMW anymore 😂
I'm surprised WSM left out one key detail. Wikipedia: "Canoo was founded in 2017 under the name Evelozcity by Stefan Krause and Ulrich Kranz. Krause worked for Deutsche Bank as its chief financial officer while Kranz worked for BMW as a senior executive. Both men had met at rival EV company Faraday Future before leaving together to form their own company in 2017, due to disagreement with Faraday Future's leadership."
They literally thought "This EV company is failing, so let's start our own"... and failed again. Faraday Future shows a company can stumble along for years making a handful of vehicles without going bankrupt.
😂
"Futuristic boxy design" apparently 1970s vans didn't exist...
Also the 1990-1996 GM minivan design: the Chevrolet Lumina APV, Pontiac Trans Sport, and Oldsmobile Sillhouette; the latter mildly famous from the "it's the Cadillac of minivans!" line in _Get Shorty_ .
The Canoo pill design has a glass panel in front of The front passengers' feet!
Well retro futurism, the last time around it was an art deco revival in the 00s, I'm all for bringing back 70s folded paper design.
@kenon6968 no I get that, I'm just saying how easily these idiots say futuristic designs, but they are just rehashing what was already done.
It needs the graphics on the sides for a true 70s vibe. A large breasted Valkyrie holding a sword and riding a large white horse😅
They call station wagons "SUV'S"
A CEO spending twice the company's revenue on a private jet is the sort of thing which should be actually criminal.
They're now up shit-creek without a Canoo.
😂 yeah, nevermind a paddle, not a gnu in sight !!
ah, i see what you did there
LMAO
Former employee of another failed EV start up here. What Canoo is doing is a near carbon copy of what happened at my former workplace. Safe to say that they are soon to be another entry into the long list of failed automotive startups
Which one? Aptera, Canoo, Einride, ElectraMeccanica, Faraday Future, Mullen (total scammers), Nikola (back to promising HFC production after the battery Tre fiasco), Phoenix Motors, REE, Workhorse Group, XOS, etc.are all in the zombie state of avoiding volume production because that would immediately bankrupt them. Lucid and Rivian exited it, but they had $billions in cash. Fisker tried to avoid it by paying Magna to build cars but that hasn't worked. RIP Arcimoto, Arrival, Bollinger, Coda, Electric Last Mile, Lightning eMotors, Lightyear, Lordstown Motors, Proterra, Smith Electric, Sono, Volta, Workhorse Group, etc.; all bankrupt or have abandoned electric vehicle manufacturing
@@skierpage arrival
@@lostlonkDid they change the name to Departed ?
Revolutionary Skateboard technology? That's my gradfather called "body on frame" back in the 60s.
Yeah, my 1990's cargo van has basically the same frame as an F-350 pickup truck. It shows how stupid investors are, and how scammy marketing is.
This isn't new or revolutionary. GM had a working hydrogen fuel cell prototype skateboard around the turn of the century. Look up the GM HyWire.
Isn't this what Tesla does?
@@snorman1911not sure about the rest of the lineup but the vaunted cyber truck's exoskeleton is just a unibody, It's laughable how fan boys and paid rags like Forbes gush about how insanely advanced it is. Like prewar Nash cars were already using full unibody construction.
Musk just innovates in ways to repackage ideas
or in the 30s, when coachbuilding was a thing. That must've been nice, where you could have your customized body put on a frame.
I was the chief marketing consultant at Canoo and was disappointed with the cash burn on family vacations 3 months in.
At least. The Emperor has no clothes.
No sale and CEO has a private jet? Not going to invest in such a fraudulent company.
_Someone_ has to fund new companies before they've made anything more than a few prototypes. Those early investors need to be very experienced, very knowledgeable about the industry, and very willing to lose every penny they invest. Most retail investors are none of those things.
@@skierpage No company need a CEO with a private jet.
That's interesting how the concept of building cars on a frame is a revolutionary new idea that attracts billion-dollar investments in 21st century 🤣
LOL! Yes, it was done over 100 years ago by Ford and others.
It's jokes, unibody construction started in earnest after WW2...then again electrics were wildly popular before the invention of the electric starter in the 1910s
@@kenon6968 Wasn't Chrysler and their one size fits all cars really big. Or was that GM...One frame for all the models sold, also known as the "K Car"
Subcontracting the manufacture of something as complex as an entire car, especially when you're developing the tech yourself demonstrates a complete lack of practical experience. Most of the effort in developing a product like a car often goes into the development of the manufacturing process, tooling, test jigs, etc.
The subcontractor has to make their cut, so you are building in a permanent cost disadvantage unless they can offer significant economies of scale. As you say, much of EV production is bespoke to the model, so it's difficult to see where those economies could come from.
Its very very difficult to manufacture something like a car and ensure it lasts over time.
Only someone who has done manufacturing can understand.
As someone once quoted, "prototypes are easy, production is hard." Hmmmmm....true that!
That is highly dependent by the subcontractor. Toyota Supra, BMW Z4, Merc G-class, Jaguar i-pace, and Fisker Ocean are all built by one Magna Steyr, the last 2 are BEVs from entirely different brand so unlike the Z4-Supra, they don't share any parts nevermind stamp.
It was probably wise to drop the manufacturing part to other company that already have the expertise, tooling, and workforce ready. So the decision to make their own manufacturing plant is probably to chase down tax break.
brand ≠ company/group ≠ manufacturer
It's a way to hide leverage. I.E. Car manufacturing is high barrier to entry and capital intensive while car design just needs engineers and a basic lab
Has anything good ever come of a SPAC, and if not why not make them illegal?
Our company (VRT) started SPAC and is quite healthy and legitimate tech manufacturer
lmao 😂 ^
By that logic let's make you illegal
Difficult to enforce. A public company can choose to acquire another. A company can change its business model. Very difficult to come up with a distinct legal standard for when both those activities are being done as a means to get on public markets, so it seems like regulators are more keen to settle for education and "SPACs" being obviously what they are, instead of pushing this stuff underground
@gigitrix fraud is very hard to prevent and define at the time that doesn’t mean it should be legal.
@2:19 The Ceo looks like Mr.Burns from the Simpsons
exactly what I just thought 😅
That's your takeaway from this story? Are you simple?
@@tvdinner325 ... but he does.
Canoo is the only EV I was hype for, because It looked cool. I knew it was a pipe dream though.
A Scooby-Doo van and a K-truck = innovation.
Do Mullen Automotive $MULN next please because Mullen fleeced way more money out of investors than Canoo
That would be an hour long video at a minimum and I'm all for it lol
@@dannydooberstein7049LOL it would be a full length documentary for sure
Scam compagny Mullen Automotive bankrupt before xmas 2024.
The CEO is just a lying money-greed criminal scammer and fraudster. He will end up in prison some day! 😎
Current market cap 25mm. Ouch.
@@tobysbreathisverybad Have a look at Fisker Inc (FSRN) if you thik that's bad. Down 99.63% in the last year and a current market cap of $11.72m..
It's disappointing that all of these commercial delivery EVs emphasize cargo volume over weight. My business has no use for large volume, but the steel coils and parts that we pick up and deliver can be very heavy. We have a small Isuzu NPR-HD, which can haul 6,600#. We purposely got a smaller cargo box, so we can fit it in our garage at night. It's getting close to needing replacement, but I've found no EVs that are suitable.
Don't be cheap and reach for a Tesla Truck
Don't Isuzu still sell NPRs? It sounds like what you need is a new one instead of something different.
@@Rami7605 A pick-up? LOL! That's not going to cut it.
@@fix0the0spade Yeah, probably. It has served us pretty well, alhough the maintenance costs have been kind of high. But we do only local deliveries, and the truck is parked inside every night, so I thought an EV might work.
@@Rami7605😮 🤣🤣🤣 No. He wants to grow his business.
We really need to start looking at how many of these "startups" are really just rich people looking for a tax free way to liquidate and fund their lifestyle by writing off those as "losses"
Losing money is losing money, you can't fund anything by putting money into a company going bankrupt. The founders who sell shares in capital raises while misrepresenting the company's state, and Tony Aquila who gets the company to pay for his private jet, are the ones making money.
@@skierpage Do you know what is the relationship between the executives and the "investors"? They may very well be the same people
@@anthonypan205 how does that work? None of the executives at Canoo are Elon Musk's with enough money to invest millions of their own money to keep Canoo going, and again putting money into a money-losing business TAKES money away from "funding your lifestyle." It is true that AFV Partners was/is a major investor and that's why its founder Tony Aquila is now CEO of Canoo, but beyond paying himself a large salary and paying for his jet it has been a terrible investment.
Exactly
@@anthonypan205 I saw that in some countries e.g. Korea the investors could be a subsidiary of the same company. While in my country some listed companies' major sharehoulders may be family members of the founder. 1 listed oil trading company whose leaders were recently charged with covering up their losses managed to do so undetected for so long as their shareholders were so few in number (
Reuters: "Canoo has burned all the money."
Canoo: "Lies! We are still burning a lot of new investor money!"
-- Just when we thought Rivian was a preposterous scam.
Scam is a harsh word for Rivian. They make genuinely good cars, they're just unable to make the economics work. It's not easy, and they're definitely not transparent, but calling it a scam doesn't even make sense.
@@nithinsrivatsa4726 "Scam" was not a precise choice of words, fair enough. What I meant is this: We are seeing many "tech" and "green" companies that are basically defrauding their investors. Yes, the customers of Rivian aren't being scammed. They get supposedly good luxury cars for less than what they cost to produce. But the investors were told they were investing in a *company*, not in a mobility charity.
Tesla is much more of a scam than Rivian. If anything, Rivian is losing revenue specifically because they're selling cars that are worth more than what they're sold for
The problem with Rivian is that they lose about $35,000 for every vehicle they sell. They're better off not selling any.
The big front end cost is passing DOT crash testing & EPA environmental testing.
This is way more of a challenge than setting up manufacturing...
This is what happens when businessmen meet with Industrial designers. We mechanical and manufacturing engineers don't want to see any designs if they are not designed based on design for manufacturing.
I’ve yet to hear of a single spac that was a success.
How many spacs have you heard of?
Don't stop making these videos!
You know when the CEO doesn't have any concern about controlling costs that the company is doomed.
Innovative skateboard design or old school body on frame?
No refund!
Lol "hard to know what their strategy is". Lol You're implying that they have a strategy. Its Clear that they do not
It was bizarre, everyone took Tesla success to mean it was easy and everyone could do it. In fact Tesla was the opposite lesson: a company with no competition, their pick of the best talent, an exceptional entrepreneur CEO, a great investor environment with lots of low cost money, and still very nearly died three times.
I said it all along; the existence of Tesla as competition plus the extreme difficulty of launching an EV startup means that none of these companies, outside of China where the government is deeply invested in their success, are likely to survive. They will not have Elon Musk as their CEO, they will not have their pick of talent, they will not have the scale of production advantage, they will not be the obvious market leader for investors to embrace, and Tesla would have died without any one of those.
You forgot billions in Government subsidies.
Wow. The skateboard concept. If GM had thought of this when they launched the Grand Prix back in 1969, they could have continued building dozens of different cars on the same platform all the way up to 1988. They could have called it the "G Body" or something like that. What a missed opportunity.
Steering wheels should be circular. It's not a Cessna its a car.
it is for those who still want a cyberpink car or a kitt car, not ideal but should be good enough
Tell that to race car drivers. 😀
The PlayStation controller will be coming once us old guys die out.
It’s not a car, it’s a canoo.
It actually make sense in the Canoo because it is steer by wire. So you never have to turn the wheel more than 90 degrees. At lower speed the wheels turn a lot and at high speed the wheels turn less.
It was a such a cool car and you can tell the team put a lot of passion into them, but it's being gutted by the c suite so they can live the high life.
⚰️R.I.P :
Canoo
Fisker
Lordstown
Aptera
HiPhi
Volta
Nikola Motor (before xmas 2024)
Lucid (2025)
Mullen Automotive (before xmas 2024)
Ect...
Rivian ain't doing too hot either.
Add faraday future and arrival
Also Volta didn’t go bankrupt they got bought out by shell
Good list. The group struggling to avoid bankruptcy also includes Einride, ElectraMeccanica, Phoenix Motors, REE, and XOS. In the bankrupt (or exited vehicle manufacturing) graveyard add Arcimoto, Bollinger, Coda (I have a long memory!), Electric Last Mile, Lightning eMotors, Lightyear, Proterra, Smith Electric (UK electric milk floats finally bit the dust), Sono, and Workhorse Group. And more.
Elon Musk: "Prototypes are easy, production is hard", also "Production with positive cash flow is extremely hard."
I do really hope aptera doesn't die again, but the production delays aren't reassuring.
There is a definite gap in the EV market for small efficient commuter cars only really seen in Korea, Japan and China. The self-charging spin makes it much more feasible for apartment dwellers like me.
"why did it become a complete failure?"
Well... we can probably start with the private jet for the CEO...
He needed to fly around the world at least once a week. For important meetings in exotic holiday vacations spots. Taking family and important politicians with him. Just like officials of FIFA, WHO, IMF, and all these other important global organisations that are there solely to look after our welfare.
There is a problem when tech bros try to apply the internet tech growth model into real life. As much as some people talk about Europe being behind in tech companies, I think the European model is better for long term production of manufactured goods. Sure, you can made great code and have a great service and rent serves to run your app, but actual manufacturing goods is very different.
I think American tech culture is a failure, too. Too much price gouging and marketing lies, too little innovation, utility, and support.
Are you telling me you don't like paying subscriptions for using a car😂
@@seansillah2703 In principle I don't have anything against paying a subscription for a car. It already exist, if I want I can go to a rental place and do it. The thing is that it usually more expensive than owning a car, as you are also paying for the profit and risk of the renter. I don't think these companies can make this sustainable in the long term and not just burn venture capital, destroy the sustainable competition, and leave us worse than before.
@@MatthewStinar nobody knows which new companies will succeed. The creative destruction in the USA has made its tech sector dominant in software, computer hardware, pharma, new space, etc. ... and leads to a lot of problems without strong regulation. Europe has the strong regulation without a strong startup culture, and it suffers economically as a result.
@@MatthewStinar most innovation comes out of the US, it's just a fact. Just look at the recent AI wave. It literally would be impossible without a strong VC market which is non existent in Europe. You couldn't have achieved it without investors throwing billions at a company like OpenAI. That's how venture capital works - >90% of them will fail, 9% will do ok, and less than 1% will become the next OpenAI
I love the shareholders 😂
Building factories in USA is suicidal due to absence of adequate workforce
Tell that to SpaceX and Tesla and a host of other manufacturing companies doing well in the USA. (Maybe ignore Boeing doing well while killing people in badly-made planes...)
Google just layed off some employee, so there is no lack of a workforce. Of course ex Google employees don't know what work is, and not interested.
This is just like the early history of the ICE automobile. Hundreds of small popup companies trying to cash in on the new technology and hype. Except this time there's already dozens of deep pocket legacy manufacturers that have the cash and the varied product line of existing ICE vehicles to back them up as the EV transition happens. Tesla is only Tesla because Elon took the biggest risk and became the first mover. But there's still no guarantee even it will survive long term.
...it won't...
The EV industry is like many emerging industries. When the auto industry started there were thousands of companies battling for a share of the market. Most of these companies went broke without selling many vehicles. Dejavu.
Yep !!! ... I gave them $150 for EV reservation pre-order 3 years ago , not even a post card or email with updates on delivery dates to this date .
Last year I came across an article ; they now building for NASA only and their first ev vans are only leasing options .
😢😢😢😢
Maybe stop giving money to any scammer who starts an “EV Company”? Ever considered that?
@@Cj-xl3jv
You Right !!! ... Better spend it on strippers , beer and drugs ...🤣😂🤣
Stop believing in climate change, global warming, being green, plastic recycling.
Sucker!
Haha yes they should return your money. They are only focused on on fleets not consumers
OMG I wish I had the barefaced audacity of these 'senior management' to ride the cash burn into the ground (they get paid a fat salary and all the extras ANYWAY).
Quite how this is not criminal - at least negligence, more likely just intentional & psychopathic greed??
The answer is the landscape of capitalism and investment in tech industries where gambling with other people's money is 'legitimate'.
And poor workers - nobody cares about them, no change there. Just 'human resources', totally disposable.
I feel bad for WsM who is trying to find ANY logical explanation to this trainwreck. The answer is unspoken but clear - it's a giant grift.
WSM is probably reluctant to admit to himself that much of his adult life was spent as a cog in the grifting machine.. That every one of his paychecks was paid with stolen money.
They could have responded a Tesla or a Chinese ev and immediately delivered
The whole point of a startup is to gamble with other people's money! Most new businesses fail, and it's hard to prove outright fraud. The simple answer is not to give your money to people on the basis of slick slide decks and worthless promises, but investors have FOMO despite successful startups like Tesla and Nvidia being few and far between.
A simple Wikipedia search reveals "Canoo was founded in 2017 under the name Evelozcity by Stefan Krause and Ulrich Kranz. Krause worked for Deutsche Bank as its chief financial officer while Kranz worked for BMW as a senior executive. Both men had met at rival EV company Faraday Future before leaving together to form their own company in 2017". Did that mean they learned from experience at the FF dumpster fire disaster what not to do, or that they realized they could start their own scam?
Yeah, you have to be completely lacking in all ethics, honesty & morals unfortunately. Only the world's leading business people, politicians & advisors have all those traits in spades.
How many of these rip offs are Walmart getting burnt by? I'm sure they were signed up for some other previous fraud, oops, new technology that came to nothing.
As for these Canoo clowns, like all of them, you need to rapidly get to a state of standardisation of your parts & assembly. Thats how Tesla virtually fell apart, from having a working plan, agreements with another manufacturer to use existing parts etc, Musk came on board & no sooner would he want a change that had to be made from scratch & they would have to work around that & he would want to & insist on another change, & again, non standardised parts so It would not only have to be factored into the new price but created & troubleshot. He had no idea. If it wasn't for the actual creators of Tesla & one of them going to Washington 6 months to a year previously they would have been gone. It was only with the previous CEO's efforts getting the Government subsidies happening, before Musk stabbed him in the back, & then Musk's fraudulent financial statements which created investment, like he always does, or they could not have survived.
Canoo, like Rivian, could have 20 years worth of future orders on the books, if you could take them at their word, yet what good is it if it costs more to produce than you can charge?
You have to be an in-house manufacturer, you have to standardise & you have to watch every single cent & it all needs to be done YESTERDAY, to get to a stage of survivability. Look how many car manufacturers have disappeared over the years. It's great to create & build a "revolutionary" car, with new gimmicks, but can you sell it for more than it costs you to make?
If you can't then you can only ask investors for money that Isn't showing a return for so long, then it comes down to selling cars for profits & you need to sell a heap of cars to cover start up manufacturing, wages & salary, etc etc.
None of these morons seem to remember a guy called Henry Ford. Musk isn't any different. They are all emperors without clothes. Barely above the level of shysters.
I can't even keep up with all these valueless pipe dreamers that are closer to frauds than anything else. If they aren't outright frauds at the beginning then who the hell is doing their due diligence?
A CEO flying around in a corporate jet before they have made a single dime is lunacy.
What do I think of Canoo?
If its not a straight out fraud then its financial irresponsibility on the level of lunacy if you supposedly believe in your company & honestly want it to succeed.
The Musk business model. No need to be responsible, it's always other people's money.
The only time they risk their own money is if they are forced to. They never quite believe in their product & business model enough that they voluntarily risk their own money or don't have to lie to investors & buyers, fraud in fact. Dreamers or liars. Thats it.
Nice video! Wow! Very immersive. Glad I can travel with you today! Thank you!
The CEO embezzled money for himself. He never cared about the company or the product.
I have said for a long time that the staff of Canoo needed to stop smoking ganja and playing video games and get down to the shop floor and start wrenching. Deliver as many vehicles as possible to open orders, as new equipment and employees come online, deliver more, but get a stream of deliveries going! BTW this was what Tesla was doing when they were first in chaos trying to deliver the speedsters.
No. _spage's law_ : EV startups can lose $millions a month promising to enter volume production "soon," or they can actually start cranking out vehicles and immediately lose $100M+ a quarter.
Aptera, Canoo, Einride, ElectraMeccanica, Faraday Future, Mullen (total scammers), Nikola (back to promising HFC production after the battery Tre fiasco), Phoenix Motors, REE, Workhorse Group, XOS, etc.are all in this zombie state. Lucid and Rivian exited it, but they had $billions in cash. Fisker tried to avoid it by paying Magna to build cars but that hasn't worked. RIP Arcimoto, Arrival, Bollinger, Coda, Electric Last Mile, Lightning eMotors, Lightyear, Lordstown Motors, Proterra, Smith Electric, Sono, Volta, Workhorse Group, etc.; all bankrupt or have abandoned electric vehicle manufacturing, and of those I think only Proterra and Smith Electric manufactured hundreds of vehicles.
Every Tesla car model after a few quarters enjoyed positive gross margins, so Tesla lost less money as it made more cars. _NONE_ of these startups have reached that state, so the way they reduce losses is to make fewer cars.
@@skierpage Tesla began with the Speedster and that's where Elon learned to do manufacturing which is much more difficult than designing a single prototype. Tesla basically began with a shop floor and the engineers wrenching the Speedsters together as fast as possible. That model worked. Canoo could have shown some income with some deliveries and the clear idea that the pace of production would ramp up. Of course, controlling costs like private airplanes would help as well.
@@hemaccabe4292 the car is called _Roadster_. Tesla paid Lotus to put French carbon fiber panels on the Lotus Elise aluminum chassis, then added its own battery packs, controllers, and motors.
Tesla didn't have the expense of a factory or stamping out its own bodies and panels, which helped it achieve positive gross margins on making 2,450 Roadsters, after Elon fired the founders and follow-up CEOs and took over. But Tesla was selling them for $100,000+ 17 years ago ($150,000 today). Canoo _CANNOT_ avoid losing a fortune making thousands of its vehicles if it's actually going to sell them for anything close to $35,000. Every EV maker's "clear idea" is when it's making tens of thousands of cars it will be eventually profitable. The words "when" and "eventually" in that sentence are key.
They have an office building in Alburn Michigan, they spent millions remodeling it as some sort of support location.
It just sits empty.
remember back when they said everyone would replace their old televisions with 3D ones?
I remember seeing Bezos on 60 min when he was just starting Amazon, which at the time still made him quite wealthy on paper and the person interviewing him asked why he drove a Honda Accord. I remember thinking “this guy gets it”….i wish I put my money on my thoughts!
Now everyone demonizes him for having money. Bro has a functioning company that services millions of people. The hate is unwarranted. He put in the work and the sacrifice.
All these spac entrants were just money grabs by greedy, useless people with no real entrepreneurial or business skills other than being good con men. They should be jailed.
You were right about bezos and the accord, but that trick has also been adopted by the con men now. One of Sam Bankman-Fried's often advertised quirks of a billionaire was that he drove around in a 20 year old Toyota camry. Then, of course, we found out he was doing it to methodically craft an image for the public...
He got lucky if he didn’t remember to pivot to cloud he would eventually failed
Little things Bezos knew……who is going to return a book! Third party shipping was always going to be expensive!
Bezos idea of E-Commerce is hardly brilliant but what is amazing is the logistics to make that happen and the well planned investments to make that happen. Amazon was not a profitable company for a long time. Both Musk and Bezos took huge gambles and they got it right! I don’t like Musk but i absolutely respect him….he busted his butt. Money though has made him a wanker….he would hardly be the first.
Sad, was really on the fence of signing up for that pickup... But really glad to see this vid before paying for vaporware! 😅 thx for the headsup!
The fact that a company that made 22 cars can be worth 150 million as a complete failure is mind blowing enough, let alone that some people valued it over 10 billion. And they say capitalism isn't just a game. Once you detach yourself from the moral and real life suffering implications, it's actually quite predictable.
Can’t use examples like these to determine if capitalism is a game.
There will be failures in any system.
There are bad people in every profession, religion, race.
I’ll never do a subscription for my vehicle. That is insanity
Has any SPAC ever worked out? I'm curious about the success rate of SPACs as against IPOs, and why does the SEC not see that they are problematic.
Worked out like they lasted long term or seem to have a viable business model? Probably Sofi, Draftkings, Burger King, etc.
@salkryeful I guess it would be 'remained a going concern within 7 years of the SPAC.
P.S. Burger King was SPAC? From the onset? That's surprising to know.
@@chigozieubah5816Burger King was only involved with a SPAC recently
Likely exceptionally few if any. And it's hard to get a person to understand a thing when their salary depends on not understanding it. SPACs are a symptom; NYSE et al are the disease.
HIMS
Sounds like Canoo is caput.
The Artemis Moon Mission is a grift too. It'll never get off the ground, nor is it designed to. Its purpose is to funnel boatloads of cash to favored constituencies, that's all.
Why is it the first thing a new company does is buy a corporate jet? Same goes for TV preachers. Even if I had the money I wouldn't dump it into a private jet. There are so many private jet services that charge you per trip and you don't have to pay for the jet to be sitting in the hangar waiting for your next trip. The SEC should crack down on this nonsense. It's fraud right out of the box.
Can you change your background music for once ? It's getting super old
Canoo is like the Nikola of minivans
I'm looking at their car and all I see is the Tartan Prancer from the National Lampoon Vacation movie.
Great video!!
Great breakdown!
3:20 “subscription payment”. In other words, a lease.
I was thinking the same thing.
Subscription sounds fancier.
I find it odd that NASA would contract with Canoo instead of Telsa as NASA and SpaceX work together in the space program.
Oh, hello... Where to begin? Well, in very short, NASA awarded SpaceX $3B for the planned Moon mission and SpaceX is not meeting its obligations for development of the program, to the point where now the whole mission is at risk. So far, and all fawning hype aside, SpaceX has not been capable of getting the rocket it designed for the Moon mission into orbit. NASA is basically done.
There is also a secondary issue which is that before the Moon contract was awarded, well, better said, a lone wolf type at NASA went against all custom and awarded the contract to SpaceX in spite of the other proposals having better designs and sounder proposals. And now.. ta da retired from NASA and works for SpaceX, yay. Huge scandal.
Yes, NASA still contracts with SpaceX to take people to the ISS but on a different type of system. And yes SpaceX launches satellites for its intenet provider scheme. But the moon thing is orders of magnitude more difficult and dangerous. And even in regard to the ISS trips, SpaceX screwed NASA so badly for years that NASA had to rent seats on other nations' rockets to the tune of millions of dollars per seat. NASA is done. They are stuck riding out this Moon mission contract but I doubt they would willingly go near Elon Musk again, Tesla, for anything experimental. In the meanwhile, they have had to come up with other money to budget toward the Moon mission and are working with other vendors now.
OK sorry, I did go a bit longer but it is fascinating! So much so that if you are happening to be interested in this topic of NASA and SpaceX, and have some time, there is a channel called Common Sense Skeptic (CSS) here on You Tube and they have recently produced 4 vids going over everything, and then packaged them as one "supercut" video. "Billionaire Space Race" And the music they use is cool! Have a good one! : )
NASA do not want to have all their eggs in one basket. Space-X is already saving them millions by lifting cargo for less than 50% of what they had to pay before. That is why Space-X now has more than 60% of the world space freight market.
Elon did say once prototypes are easy production is hard
Obviously in the wrong business. The canoe business, on the other hand, is booming.
I think they are up a creek without a paddle!
I wonder if they will refund my $100 reservation from 2 years ago? Let's see...
Just a fyi Walmart headquarters is in BentonVILLE not Benton, AR. Those are two different cities. One is in Northern Arkansas. The other is in central Arkansas near Little Rock. 😉
I think they've had a strategy all along and executed it perfectly.
Either that or they are financial lunatics & basically oblivious of reality in the least. Now, I'm sure the heads lacked ethics & morals but I'm fairly sure they can count to ten. It's the Musk business model. Bullsh*t your way through every day & in matters of importance, simply lie. Fraudsters.
Same thought -
1. Promote trendy ideas and pre-manufacture "vapor sales"; then fake it till you make it (Big Offices & Big Jet)
2. Promote (new) trendy ideas and (new) pre-manufacture "vapor sales"; then fake it till you make it (Bigger Offices and Bigger Jet)
3. Promote (new, new) trendy ideas...
Yes, it is called high wages for everyone until the startup fails...
You are correct. They are behind in their original time line but are still following the plan. Walmart has recently confirmed that they will purchase 4500 vans as well as king bee on their order. This year’s plan is to make about 130 vehicles to train staff and stream line their factory. I still have hope they will succeed.
Just another ponsi scheme.
I was actually excited for this one to make it ...man
Great video thank you
This is why I like edison motors. 11 guys in a tent shop here bc built from scratch, an electric logging truck based on the concept of a diesel electric driveline. It's proven tech given trains have been doing it for 70 years. Plus they are building them to be reliable and serviceable anywhere without using exclusive parts to the truck.
Excellent job on this company. Many thanks.
the pickup looks kind of cool.
Obscure point about why would they move to Arkansas:
Walmart has a policy that every vendor they do business with have a headquarters within 30 miles of bentonville (not Benton as said in the video), it’s likely canoo was renting in Oklahoma and could skip out on an expensive lease while also bending the knee to the Walmart “must have an hq within 30 miles” rule
😂 keep this video for future business school classes.
"Skateboard Technology", GM patented this decades ago for battery and hydrogen fuel cell.
Consumers rejected the GM minivans with the dustbuster nose and large inside dash. Driving them felt weird and uncomfortable but that is just how they designed the Canoo. It looks cool from the outside but in practice it is a huge fail.
Sounds great! I'm gonna invest!
The city where Walmart headquarters is located is called "Bentonville", not "Benton".
dang i really liked the concept of the vehicle
When a company like this is very, very likely to fail is it still possible to short the stock?
I have never shorted a stock, but am thinking brobably not because someone would have to be willing to bet on there survival.
Quite interesting to see what company's stock I had found to be plunging the most violently...
6:43 *BentonVILLE, Arkansas
8:15 *Oklahoma City
Amazing how many people are simply fools. Investing in smoke and mirrors. A fool and their money are soon parted.
Sort of like in the olden days guys would travel the country with there horse and wagon, stop in a rural town and sell their cure all medication, then quickly leave town. Nothing a little liquor and food coloring can't cure.
Need an update on Coinbase vs SEC lawsuit. 😂😂
10:54 …. I ask the same question about Saturday Night Live and the View. I’m convinced there are people so rich they have money to light on fire…. millions to light on fire.
Hey guys i have an idea
What if we come as a group to deliberately pump up a spac postion and as soon as our money has doubled we dump all of the postions since this is not illegal to do
Sad. The vehicles look much better than most electric vehicles on the market.
You can see the leadership of Canoo used "The Art of the Deal" as their management text.
I don’t understand how all these EV companies are putting so much money into cars when there just isn’t the infrastructure to support them. Gas stations are already here and they are everywhere and they are very convenient!
It's where the money is. A lot of VC and FOMO money looking for the next "Tesla". Nobody is looking for the next Ford or Toyota. Every rags-to-riches founder trying to get a piece of that VC and FOMO pie.
When they show revenue projection per year, but cash expenditures per quarter, you know it’s going downhill
Nice wording in the Annual Revenue vs Cash Outflow lol.
There was no way that would pass safety regulations and standards. That’s why it went under. The company knew this from the start.
There are so many warning signs associated with Canoo; EV startup, SPAC, New Selling model, however, the basic concept of the skateboard platform, and the early styling does look good. If Telsa had come out with the B2C Lifestyle instead of the Cybertruck they would no doubt have a real winner on their hands and less of a Marmite vehicle.
There are a number of legacy auto manufacturers that are being left behind with their EV offerings, where snapping up a failing company like Canoo that have done the initial work would seem like an opportunity for the legacy manufacture to catch up at an affordable price.
Maybe the devil is in the detail and the B2C Lifestyle flawed but on looks alone it would seem to give the VW ID Bus a run for its money.
You should also explain how many times Canoo did a reverse split to avoid possible de listing
It's a all time low share. Time to buy, just saying, EV are the future aren't they?
Canooo Canooo? Canoooooooo!
What a name!
(Hearing the video minimized, while working)
"Canoo was co-founded in 2017 by old, rich crones."
(watching the video proper after being befuddled by that statement)
"Canoo was co-founded in 2017 by Ulrich Kranz."
(pausing the video, being even more befuddled by the guy looking like a cartoon villain)
Lol these comments are surprisingly funny you aren't the only one posting humor.
... who both worked at Faraday Future, another scam fake dumpster-fire joke of an EV company. You can't make this stuff up.
I love how many of these electric car companies say their cars will start at $35000 to secure investors then they skyrocket the price.
If they plan to open a plant in Arkansas, is because Walmart makes everyone who does business with them to be established in the state. This is their way to bring more business to the state.