Canoo Shifts Focus to Fleet Sales, Refunds Consumer Deposits

The EV startup is prioritizing fleet customers over consumer markets to achieve profitability.

Canoo has decided to refund all retail customer deposits as it shifts focus to fleet customers, citing the need for scale to enter the consumer market profitably.
The company reported $900,000 in revenue for the third quarter, a 73% increase from the previous year, but still faces significant financial challenges.
CEO Tony Aquila announced that the executive team is willing to take short-term pay cuts to help the company reduce costs and consolidate operations.
Canoo's stock saw a brief increase after earnings were released, despite the company withdrawing its 2024 revenue guidance and facing a cash outflow between $30 million to $40 million in the fourth quarter.
Royal Mail has begun piloting Canoo's electric delivery vehicles as part of its fleet electrification efforts, marking a significant partnership for Canoo's fleet-focused strategy.