Canoo, an electric vehicle startup based in California, has had a rocky history that recently ended with the company’s crippling bankruptcy. The company’s eking is former employees of the now-caput Canoo. Across the asset sale process, its IP, prototypes and equipment were reviewed by several entities interested in acquiring the assets. A bankruptcy judge has accepted the sale of Canoo’s assets to majority Tony Aquila for just $4 million. This decision occurred despite the fact that other bidders were able to offer more money.
The decision to sell Canoo’s assets follows the company’s inability to fulfill operational requirements, as highlighted by NASA’s statement that it “was no longer able to meet our mission requirements.” Canoo experienced extraordinary difficulties meeting its obligations required by government programs. Ironically, this longer-term friction led to the company’s bankruptcy.
Canoo’s bankruptcy proceedings drew interest from several bidders, including Charles Garson, a mysterious financier from the U.K., who expressed a willingness to pay as much as $20 million for Canoo’s assets. The court found that Garson’s offer did not get properly formalized in time to be considered. Things got further testy when one of the bidders raised a stink with the Committee on Foreign Investment in the United States. These fears about “foreign ownership” appear to have influenced the final outcome.
Tony Aquila’s bid, deemed acceptable by the bankruptcy trustee, was accepted without wide marketing of Canoo’s assets, raising questions about transparency in the bidding process. Aquila expressed his intention to honor Canoo’s previous commitments to support government programs, stating a “desire to honor [Canoo’s] commitment to provide service and support for certain government programs.”
Harbinger, another electric trucking company that came onto the scene in 2021, was founded by former Canoo employees. This game-changing development provides yet another subplot in the developing tale. Harbinger’s arrival represents a growing recognition that the electric vehicle sector has been too focused on passenger cars. The companies that survive and thrive will be the ones most able to pivot to meet changing market conditions.
As Charles Garson and Harbinger found out, such a controversial sale would endanger future government contracts. They both decided to remain silent on the developing tragedy. A lawyer for Tony Aquila did not respond to requests for additional comment.
Sean O’Kane, a reporter specializing in the transportation industry, has been covering these developments closely. He adds that Canoo’s asset sale is a window into the trouble EV startups face. It shows the perniciousness of the complex dynamics of financing and ownership that can loom large over these companies with devastating effects.
