Canoo losing money, promised jobs to Oklahoma
TULSA, Okla. (KTUL) — Executives from Canoo, the electric vehicle company, say the company is at risk of shutting down due to financial troubles.
Canoo promised to bring thousands of jobs to Oklahoma and northwest Arkansas with its manufacturing plants and offices, but in the last three months, the company says it's burned through nearly $125 million.
In a statement released yesterday, the electric vehicle start-up said it's identified substantial doubt about its ability to continue, adding, "If we are unable to obtain sufficient funding or do not have access to capital, we will be unable to execute our business plans and could be required to terminate or significantly curtail our operations and our prospects, financial condition and results of operations could be materially adversely affected."
The company's uncertainty puts the Mid-America Industrial Park manufacturing facility at risk, one that was expected to bring 1,500 jobs to northeast Oklahoma.
In addition to the jobs in Pryor, the company planned to add 700 jobs in Tulsa and Oklahoma City after building other facilities.
Governor Kevin Stitt promised to give Canoo $15 million to build its Pryor plant, as long as certain conditions are met.
The Oklahoma State Department of Commerce also promised $300 million in incentives last June. In addition, the state entered an agreement to purchase 1,000 vehicles from the car company, which still hasn’t put a single vehicle on the market.
The company's deal with NASA to provide its vehicles for their ground transportation is also now in jeopardy.
At this time, the state has not given any money to Canoo.
