In Canoo’s 2023 earnings report is a nugget regarding the use of CEO Tony Aquila’s private jet – one of many expenses that illustrates the gap between expenses and revenues of the EV startup.
Canoo released its fourth-quarter and full-year 2023 results Monday in a regulatory filing that shows a company burning cash as it tries to increase volume production of its commercial electric vehicles and avoid the same fate as other electric vehicle startups, like the recently bankrupt Arrival. . The regulatory filing once again contained a “going concern” warning – which has persisted since 2022 – as well as progress on the spending and revenue front.
The company generated $886,000 in revenue in 2023, compared to zero dollars in 2022, as the company delivered 22 vehicles to entities like NASA and the state of Oklahoma. And it cut its operating loss by almost half, from $506 million in 2022 to $267 million in 2023. The gap between revenues and losses remains considerable, however: the company reported total net losses of $302.6 million in 2023.
Yet one only has to look at the rent Canoo pays for the CEO’s private jet to put these “wins” into perspective. Under a deal reached in November 2020, Canoo reimburses Aquila Family Ventures, an entity owned by the CEO, for the use of an aircraft. In 2023, Canoo spent $1.7 million on this reimbursement, double the amount of revenue generated. Canoo paid Aquila Family Ventures $1.3 million in 2022 and $1.8 million in 2021 for use of the aircraft.
Separately, Canoo also paid Aquila Family Ventures $1.7 million in 2023, $1.1 million in 2022 and $500,000 in 2021 for shared services support at its corporate offices in Justin, Texas, according to regulatory filings.
This could be attributed to small monetary potatoes if Canoo hits its 2024 revenue guidance of $50 million to $100 million.
We have requested comment from Canoo and will update this article if we receive a response.
techcrunch
