Canoo spent double its annual earnings on the CEO’s non-public jet in 2023 | TechCrunch – Techcrunch
Tucked inner Canoo’s 2023 earnings document is a nugget referring to the utilization of CEO Tony Aquila’s non-public jet — appropriate one in every of many prices that illustrates the gap between spending and earnings on the EV startup.
Canoo posted Monday its fourth-quarter and fleshy-365 days earnings for 2023 in a regulatory submitting that shows a firm burning by money as it tries to scale up quantity manufacturing of its industrial electrical vehicles and steer sure of the same destiny as other EV startups, love unbiased nowadays bankrupt Arrival. The regulatory submitting all over another time contained a “going place” warning — which has endured since 2022 — as neatly as some development on the prices and earnings fronts.
The firm generated $886,000 in earnings in 2023 compared with zero greenbacks in 2022, as the firm delivered 22 vehicles to entities love NASA and the yell of Oklahoma. And it did minimize its loss from operations by when it comes to half, from $506 million in 2022 to $267 million in 2023. The earnings-to-losses gap is aloof in actuality wide despite the indisputable truth that: The firm reported complete ranking losses of $302.6 million in 2023.
Restful, one only must query at what Canoo is paying to rent the CEO’s non-public jet to position those “wins” into standpoint. Below a deal reached in November 2020, Canoo reimburses Aquila Family Ventures, an entity owned by the CEO, for employ of an plane. In 2023, Canoo spent $1.7 million on this repayment — that’s double the amount of earnings it generated. Canoo paid Aquila Family Ventures $1.3 million in 2022 and $1.8 million in 2021 for employ of the plane.
Individually, Canoo furthermore paid Aquila Family Ventures $1.7 million in 2023, $1.1 million in 2022 and $500,000 in 2021 for shared companies pork up in its Justin, Texas, corporate office facility, in step with regulatory filings.
This is succesful of be chalked as much as minute financial potatoes if Canoo reaches its earnings forecast for 2024 of $50 million to $100 million.
We’ve asked Canoo for comment and would possibly perchance merely replace this post if we hear inspire.
