Latest news with #Canoo
Globe and Mail
02-06-2025
- Automotive
- Globe and Mail
Will Lucid Stock Be the Next Tesla or Fade Away Like Nikola?
While U.S. electric vehicle market leader Tesla (TSLA) has recouped most of its 2025 losses and has rejoined the $1 trillion market cap club, things have been quite bleak for startup EV companies this year. The spate of bankruptcies has continued in 2025, with Nikola (NKLAQ) and Canoo (GOEVQ) joining the ever-growing list of startups going out of business. Of this group, I find only Lucid Group (LCID) and Rivian (RIVN) as two names worth discussing. Not only do they have viable products with good value propositions, but they have also demonstrated their ability to raise cash to fund their cash burn. Lucid Motors Was Labeled as The Next Tesla Lucid Motors was once labeled a 'Tesla-killer' by many on the Street. The company's founder and former CEO, Peter Rawlinson, even predicted the EV industry to be a 'two-horse race' – with Tesla (TSLA), of course, being the other horse running. A mere glance at its SPAC merger presentation would reveal how generously it benchmarked itself against Tesla, both in terms of car quality and valuations. However, the company has largely failed to live up to the hype. Meanwhile, earlier this year, Lucid acquired some assets of bankrupt Nikola for around $17 million in cash and assumed two leases in Arizona as part of that deal. In this article, we'll discuss whether Lucid Motors can be as successful as Tesla, which, despite its shortcomings, is still the gold standard for many EV companies, or if the company will go out of business like Nikola. Lucid Motors Is Posting Massive Losses Lucid Motors has been posting massive losses, and while the company's Q1 2025 gross margin came in better than expected, it was still -97.2%. That's quite precarious and implies that the cost of revenues is almost twice what the company makes by selling a car on average. The gross margin does not even account for the research & development (R&D) and selling, general, and administrative (SG&A) expenses, which together were roughly 2x the company's Q1 2025 revenues. Lucid Motors Might Not Go the Nikola Way The company had total liquidity of $5.76 billion at the end of March, which the company says provides it with a 'runway into the second half of 2026." During the Q1 2025 earnings call, Lucid CFO Taoufiq Boussaid emphasized, 'This does not include potential future Saudi Industrial Development Fund loans or Ministry of Industry of Saudi Arabia grants.' While some more green energy companies might go bankrupt over the next couple of years, Lucid Group might not, given its backing from Saudi Arabia's sovereign wealth fund, which has poured billions into the EV company already. The 'Saudi backstop' has kept Lucid afloat over the years, and given the country's efforts to diversify its economy from oil revenues, I believe it will keep backing the loss-making company. Overall, I doubt that Lucid will go the Nikola way, at least anytime soon. In fact, Saudi Arabia might even consider taking the company private, a possibility that many have been speculating about for quite some time now. What Would It Take for Lucid to Become the Next Tesla? Meanwhile, while the possibility of Lucid going the Nikola way looks bleak, the road to becoming the next Tesla looks quite hard, too. Lucid Motors offers a quality product, and U.S. News & World Report has named its Air sedan the Best Luxury Electric Car for four consecutive years. The company's second model, the Lucid Gravity SUV, has also received rave reviews, with MotorTrend saying the model is 'Is as Good as EV SUVs Get.' While the publication said that the price for the model is 'not a bargain,' it emphasized, 'but when you consider the cutting-edge technology, impressive range, and sports-car-level performance, it's hard to beat.' That said, to even come remotely close to Tesla, Lucid needs to ramp up its deliveries significantly from the current levels. For context, its 2025 production guidance of 20,000 units is a tiny fraction of the almost 1.8 million cars that Tesla delivered last year. So far, Lucid has targeted the top end of the market, which is similar to what Tesla did in its early days. Lucid is next coming up with a midsize platform, which interim CEO Marc Winterhoff said could be an 'even bigger game changer' than the Gravity SUV. Lucid Needs Its 'Model 3 Moment' In my view, for Lucid to come anywhere closer to Tesla, the company needs its 'Model 3 moment,' which is easier said than done. Tesla CEO Elon Musk stressed multiple times how the company went through a 'production hell' while ramping up Model 3 production. Musk has said that the Tesla factory was his 'primary residence' for three years, where he even slept on the floor. However, what worked in Tesla's favor was the near cakewalk it had in the EV market, as not many automakers took electric cars seriously. Cut to 2025, and there is no dearth of EV models with the market now in an oversupply situation. As for losses, even Tesla was profitable in only a handful of quarters before 2020, and that year was its first full profitable year. However, the company has since been profitable on a sustainable basis. Lucid Motors' losses are still uncomfortably high, even as rival Rivian has posted positive gross margins for two consecutive quarters. Thanks to the EV price war and rising competition, startup EV companies face a tough task in churning out a profit. Overall, while Lucid could still avoid Nikola's fate, becoming the next Tesla looks increasingly difficult for the company.
TechCrunch
16-05-2025
- Business
- TechCrunch
Mystery investor's attempt to stop Canoo asset sale shot down by judge
The judge in Canoo's bankruptcy case has blocked an attempt by a mysterious financier to disrupt the sale of the EV startup's assets. In a hearing Tuesday, Judge Brendan Linehan Shannon ruled the financier, a UK-based man named Charles Garson, lacked standing to request the sale to Canoo's own CEO be vacated. While Garson had told the court he was willing to pay as much as $20 million for Canoo's assets, he missed the deadline to formally submit that bid. Garson also never made it clear where he was sourcing that money from, causing the bankruptcy trustee in the case to raise concerns the bid could get blocked by the Committee on Foreign Investment in the United States. The last remaining challenge to the asset sale comes from Harbinger Motors, a commercial electric trucking startup created by a handful of former Canoo employees. Harbinger objected to the sale before it was finalized in April. The judge denied Harbinger's objection, but the company has since appealed that decision. Jason Angelo, a lawyer for Garson, framed his client's attempt to disrupt the sale as a 'David versus Goliath type matter.' Angelo tried to make the case during the hearing that Garson's conversations with the bankruptcy trustee — which were submitted to the court under seal — led him to believe he had until the end of April to formalize a bid. He also repeated the claims made in Garson's original filing about the sale allegedly being unfair because the assets ultimately went to Canoo's CEO Anthony Aquila. 'I think it would make sense here to allow a redo, so to speak,' Angelo said, citing 'the sincerity and earnestness' of his client. 'I know that is asking a lot, I do.' Mark Felger, the lawyer representing the bankruptcy trustee, disagreed by saying there was little in dispute and the negotiations were fair. 'We think it's pretty clear-cut in terms of the facts. There's no he said, she said,' he told the judge. 'Your Honor, it's all in the emails. I've read them over many, many times. I don't see any miscommunication. I don't see any deception. It was clear how we were proceeding. He knew there was a sale hearing on the ninth, and he chose not to file anything.' Techcrunch event Join us at TechCrunch Sessions: AI Secure your spot for our leading AI industry event with speakers from OpenAI, Anthropic, and Cohere. For a limited time, tickets are just $292 for an entire day of expert talks, workshops, and potent networking. Exhibit at TechCrunch Sessions: AI Secure your spot at TC Sessions: AI and show 1,200+ decision-makers what you've built — without the big spend. Available through May 9 or while tables last. Berkeley, CA | REGISTER NOW Regarding the fairness of the sale process, Felger said he and the trustee 'were concerned about this insider sale [to the CEO].' 'But they're the ones who stepped up, right and we negotiated hard. We went back and forth a dozen times on that agreement,' he said. Felger also repeated the trustee's claims, made in earlier filings and testimony, that the cost of maintaining Canoo's assets — especially its battery packs — was costing too much money. Letting a sale process drag out for too long could damage the value of the estate, he said. Judge Shannon, after hearing the arguments from Angelo, Felger, and a lawyer for Aquila, ruled swiftly against Garson. He said the financier lacked standing to properly argue his motion to vacate the sale, since he is not owed any money by Canoo and did not submit a formal bid before the deadline. 'I am sympathetic to Mr. Garson's frustration at what I sense and am satisfied is a genuine interest to provide a superior bid and purchase these assets,' Shannon said. 'But it was a complex process run by the chapter seven trustee that I don't think Mr. Garson had a full handle on exactly what the process was, and what was necessary in order to fully engage in that process.' Shannon also pointed out it was made clear to the trustee from the beginning who Aquila was, and that his role as CEO alone did not preclude him from buying his company's assets.
Associated Press
21-04-2025
- Automotive
- Associated Press
Global and China Skateboard Chassis Industry Report 2024-2025: Market Fades in Overseas Markets, While it Begins to Come to the Fore in China
DUBLIN--(BUSINESS WIRE)--Apr 21, 2025-- The 'Skateboard Chassis Industry Report Global and China, 2024-2025" report has been added to offering. Skateboard chassis research: already used in 8 production models, and larger-scale production expected beyond 2025 Global and China Skateboard Chassis Industry Report, 2024-2025 combs through and summarizes the status quo, installation, and suppliers' product layout of skateboard chassis, and also predicts its future development trends. This article will interpret the status quo of the industry from three perspectives: OEMs, suppliers, and the capital market. Skateboard chassis fades in overseas markets, while it begins to come to the fore in China. As giants Arrival and Canoo exit, skateboard chassis cools down in overseas markets. In January 2024, Arrival, a prominent British skateboard chassis player, received a delisting notice from the NASDAQ Stock Market. In February 2024, the company filed for bankruptcy protection and eventually sold its assets to another startup, Canoo. Yet Canoo's car making dreams also came to an abrupt end this year. As the global pioneer of the model of making cars with skateboard chassis, Canoo launched pickups, sedans, and LDVs for freight, and successfully delivered products to renowned institutions such as National Aeronautics and Space Administration (NASA), the US Department of Defense, and the US Postal Service. It signed cooperation agreements with companies like Walmart. However, on January 17, 2025, Canoo announced that it had filed for bankruptcy protection and ceased operations immediately. The exits of Arrival and Canoo, two skateboard chassis OEM giants, not only signify the end of their car making dreams but also indicate the development of skateboard chassis has a setback in the Western market. Although skateboard chassis has cooled in overseas markets, several Chinese OEMs are still working to deploy skateboard chassis technology. They not only have had multiple production models equipped with skateboard chassis technology, but unveiled several new models featuring this technology in 2024. Multiple Chinese OEMs deploy skateboard chassis technology, small-scale production for light commercial vehicles expected during 2025-2026. According to incomplete statistics, about 14 models featuring skateboard chassis technology debuted in 2024, mainly light commercial vehicles planned for mass production during 2025-2026. In the passenger car segment, the model NIO S Liezhuang CIIC800V is currently planned to adopt skateboard chassis technology. In China, 8 production models have already adopted skateboard chassis technology, of which most are light commercial vehicles such as logistics vehicle, light bus, and light truck, and a few are heavy trucks and passenger cars. 2023 to Early 2025: 7 suppliers secured 15 funding rounds, raising over RMB1.6 billion. The train of financing events highlights the capital market's great attention to and support for the skateboard chassis segment. On one hand, the highly integrated and modular design of skateboard chassis can effectively shorten R&D cycles and reduce costs for automakers, aligning with the current trend towards intelligence and electrification in the automotive industry. On the other hand, its application potential in logistics, sanitation, public transport, and other fields is immense, making it a promising market. The influx of capital will further drive innovation and iteration in skateboard chassis technology, and accelerate commercialization of related companies, giving a big boost to the entire industry. While skateboard chassis face challenges in overseas markets, it thrives in China. The reasons for this contrast include low penetration of new energy vehicles, insufficient policy support, and high supply chain costs overseas. The boom in China is credited to policy support, a mature supply chain, capital favor, and rapid technological iteration. In addition to OEMs which vigorously make layout, the capital market has also shown strong enthusiasm, with high confidence in skateboard chassis: Skateboard chassis solution suppliers target end scenarios, with multiple models in operation. Skateboard chassis technology suppliers such as REE, PIX Moving, TEEMO Technology, ECAR Tech, and Seektop Automobile primarily apply their products to last-mile scenarios, including autonomous retail vehicles, autonomous cleaning robots, and autonomous logistics vehicles. Take PIX Moving and TEEMO Technology as examples: In December 2024, PIX Moving, TIS, and the Hot Okinawa Research Institute formed a partnership. In this collaboration, TIS is responsible for introduction and planning, PIX Moving provides autonomous vehicles and technology, the Hot Okinawa Research Institute operates autonomous retail services, and Kanucha Resort (a resort in Nago City, Okinawa) provides application scenarios. PIX's autonomous retail vehicle Robo-Shop (eagle wing door version) has been put into operation in Okinawa, Japan, offering innovative unmanned mobile retail services to tourists. It can be intelligently dispatched according to tourist flow, automatically moving to crowded areas to sell snacks, beverages, and other goods, and supporting cashless payments. TEEMO Technology's AutoBots-W7 mid-size intelligent skateboard chassis is designed for medium- and low-speed autonomous MPVs which are applicable to scenarios such as urban and campus delivery, unmanned logistics, factory logistics, and urban and rural sanitation. Its commercially produced skateboard chassis, AutoBots-W7, has been successfully installed on Zelos (Suzhou) Technology's urban autonomous distribution vehicles. Currently, Zelos has achieved large-scale deployment in over 20 provinces in China and more than 100 cities globally, covering scenarios like fresh food delivery, laundry delivery, cold chain distribution, and express delivery. Zelos finds broad application in express delivery, and partners with multiple express companies such as SF Express, China Post, YTO Express, ZTO Express, and STO Express. Key Topics Covered: Overview of Skateboard Chassis Industry Skateboard Chassis Technology Layout of OEMs Chinese and Foreign Skateboard Chassis Suppliers Application Scenarios and Solutions for Skateboard Chassis Development Trends of Skateboard Chassis For more information about this report visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. View source version on CONTACT: Laura Wood, Senior Press Manager [email protected] For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900 KEYWORD: CHINA ASIA PACIFIC INDUSTRY KEYWORD: AUTOMOTIVE MANUFACTURING MANUFACTURING VEHICLE TECHNOLOGY GENERAL AUTOMOTIVE AUTOMOTIVE SOURCE: Research and Markets Copyright Business Wire 2025. PUB: 04/21/2025 09:37 AM/DISC: 04/21/2025 09:36 AM
Yahoo
26-02-2025
- Automotive
- Yahoo
These Should Be The Next Mail Trucks When The Post Office Gets Privatized
Seemingly, it's open season to cut every piece of the federal government possible. President Donald Trump has given Elon Musk and the self-proclaimed Department of Government Efficiency carte blanche to eliminate as much federal spending as possible. However, privatizing the United States Postal Service was a carry-over goal from his first term in office that has returned for a second attempt. We asked our readers earlier this week what the ideal vehicle would be for a privatized Post Office. Their suggestions featured a balanced mix of serious recommendations and attempts at comedic political commentary. The basic gist is that we're going to need a tow truck for every Cybertruck hauling the mail. Without further ado, here are what you think should be the next mail trucks: Read more: These New Cars Just Aren't Worth The Money "Can we reboot the Windstar? Ford has to have some parts for it in a warehouse somewhere." Submitted by: Emperor Norton Why not? It's been 18 years since Ford discontinued the Freestar, but enough of them could be put into service with spares fabricated out of the parts bin. "The vehicle won't matter as long as it has a device that shreds all mail-in ballots going to and fro an urban area. That device may well be the driver, who will be fired by the Musk-owned USPS for non-compliance otherwise." Submitted by: GTO1962 "The corpse of Canoo is still warm -- buy up that factory/tooling and get those vans on the road. Most of the work is already done; they even had a USPS model in the works. It looks freaking awesome." Submitted by: BuddyS If NASA and the Postal Service couldn't save Canoo, I don't think anything is bringing them back from the grave. "I love everything posted so far. On a more serious note, Toyota hybrids are the obvious answer to every automotive question ever asked. With the exception of anything to do with fast or fun." Submitted by: Caddyshack03 "I'm pretty sure there's a large number of Cybertrucks that Elon would LOVE to sell at top dollar to the USPS. Would they make it 100k miles? Yeah. Yeah, that's the ticket!!" Submitted by: Stillnotatony "Chevy Express. It's made in Missouri (Red State), available with a V8 (Murica!) and it only seems to be available in white. Plus it can tow up to 9,000 lbs so it'll drag a cyber truck if it needs to." Submitted by: Drg84 "Pre-owned Ladas." "We're importing Russia's old politics, might as well import their old cars too." Submitted by: Skeffles "We should look at getting a slew of used Yugos from Russia. Should be able to pay them a steep premium with the current relationship the two countries' leaders have." Submitted by: Yugo, no I go. I hope I'm not the first person to tell you that the Yugo was built in Serbia, not Russia. "Individual household's own vehicle driving 50 miles each way to get their own mail from the closest regional post office." Submitted by: PJE Read the original article on Jalopnik.
Yahoo
26-02-2025
- Automotive
- Yahoo
Lucid Boss Quits After Company Loses $300,000 For Every Car Sold Last Year
American electric vehicle startup Lucid is burning through cash at an alarming rate as it tries desperately to avoid the same fate that hit defunct automakers like Canoo and Nikola. The struggles are very real for the Saudi-backed EV maker, though, and its CEO stepped down this week after the company revealed it lost $3 billion over the course of 2024. Lucid was meant to be one of the rare success stories in the world of EVs. It had contracts to supply motors to brands like Aston Martin, had the backing of Saudi's vast oil funds and had two cars that were winning fans. Fans don't equal sales, however, and after shifting less than 10,000 units in 2024, the company revealed that the losses were mounting, reports the Wall Street Journal. Over the course of 2024, the company posted net losses of $3 billion for the year compared with $2.8 billion in losses a year earlier. The eye-watering figure means that Lucid lost around $300,000 for every car it sold last year. Read more: Unsold Chinese EVs Are Piling Up At Ports The enormous losses at Lucid ate into the company's cash reserves, which are now worth less than $2 billion, and led to the departure of CEO Peter Rawlinson, adds the WSJ. Rawlinson resigned on Tuesday, and will be replaced at the head of Lucid by interim CEO Marc Winterhoff, who was appointed chief operating officer of the brand a little over a year ago. As the Wall Street Journal reports: Rawlinson led Lucid since 2019 and guided the startup through its public debut in 2021. A former Tesla and Jaguar engineer, Rawlinson helped Lucid develop some of the industry's most innovative battery and electric-motor technology. Still, the EV maker has struggled to lift its share price and been beset by sluggish sales and persistent losses, hurt by a slowdown in the growth of U.S. electric-vehicle sales that has hit traditional automakers and startups alike. A search for a new leader of Lucid will now kick off, while Rawlinson will reportedly stay on at the automaker in an "advisory capacity." Lucid burst onto the electric vehicle scene with its Air sedan back in 2021. The automaker sold around 10,000 of the $70,000 EVs last year, which was up from around 6,000 units a year previously. The Air will be joined on the road by the Gravity SUV later this year, which is scheduled to enter production in 2025. The luxury electric three-row SUV will be available to order in "late 2025," Lucid reports, with a starting price around $79,900. When deliveries begin, Lucid hopes that the addition of an SUV to its range will help it double sales over the course of the year, with it targeting deliveries of 20,000 units this year. The American automaker currently offers its EVs in select global markets, including the United States, Europe and Saudi Arabia. In order to boost sales and, ultimately, profits Lucid opened a dedicated facility in Saudi Arabia that will one day have the capacity to build more than 150,000 cars per year. The company clearly has to work on its sales tactics before then, however. Read the original article on Jalopnik.
