Canoo (NASDAQ:GOEV) is a Texas-based mobility technology company that is engaged in the design, engineering, development, and manufacture of electric vehicles for commercial and consumer markets in the United States. Shares of Canoo were down 27% in late afternoon trading on Tuesday, April 2. That has pushed the stock down over 45% in the year-to-date period. What has caused the sharp decline for Canoo in the early spring? Let’s jump in.
The company was hit hard by turbulence following a downbeat forecast. Canoo unveiled its fourth quarter (Q4) and full year fiscal 2023 earnings on Monday, April 1. In Q4 FY2023, Canoo completed 17 vehicles. Meanwhile, it reported a $45.0 million investment from the Foreign Strategic Institutional Investor.
For the full year, Canoo reported a GAAP net loss and comprehensive loss of $302 million compared to $487 million in the previous year. Moreover, it posted a negative adjusted EBITDA of $224 million for fiscal 2023 compared to a negative adjusted EBITDA of $408 million in fiscal 2022. Net cash used in operating activities came in at $251 million in fiscal 2023 – down from $400 million in the previous year.
Canoo’s 2024 fiscal outlook took a significant hit after a difficult 2023. The company now projects annual revenue between $50 million and $100 million in fiscal 2024, and cash outflow between $45 million and $75 million.
Shares of Canoo are trading in solid value territory compared to its industry peers at the time of this writing. However, the sharp dip in revenue is concerning as the electric vehicle (EV) space is in a phase of transition.
