This carmaker spent higher on CEO's travels than annual revenue
What's the story
Canoo, an emerging electric vehicle (EV) manufacturer, revealed in its 2023 financial statement, that the company spent twice as much on CEO Tony Aquila's private jet as it earned in annual revenue. This disclosure highlights the financial difficulties faced by Canoo, as it aims to ramp up the production of its commercial EVs. The report also included a "going concern" warning, a concern that has been ongoing since 2022.
Financial performance
Revenue and operational losses in 2023
In 2023, Canoo reported a revenue of $886,000, primarily from the delivery of 22 vehicles to organizations including NASA as well as the state of Oklahoma. This was a significant increase from the previous year when it had no revenue. Despite this growth, operational losses remained high at $267 million, down from $506 million in 2022. The company also clocked total net losses of $302.6 million for the year.
Corporate costs
Expenditure on CEO's private jet and shared services
Canoo compensated Aquila Family Ventures, a firm owned by Aquila, $1.7 million for aircraft usage in 2023, twice its annual revenue. This agreement was established in November 2020. In addition to aircraft costs, Canoo also paid money to Aquila Family Ventures, for shared services at its corporate office facility in Justin, Texas. These payments totaled $1.7 million in 2023, up from $1.1 million in 2022 and $500,000 in 2021.
Forecast
Canoo tipped to clock $50-100 million in revenue
For 2024, Canoo has a revenue forecast for somewhere between $50 million to $100 million. If the figures prove to be true, the huge expenditure behind the company's CEO, is unlikely to matter much. Canoo is yet to make a comment on this revelation.