## Canoo Faces Financial Headwinds as New CFO Takes the Helm
Electric vehicle startup Canoo Inc. (GOEV) is navigating turbulent waters as it appoints a new Chief Financial Officer. On October 31, the company announced Kunal Bhalla as its new CFO, succeeding Greg Ethridge who resigned. Bhalla, a veteran of the mobility technology sector with experience at Rothschild and Co., has been with Canoo since late 2020 in various roles.
This appointment comes on the heels of a series of changes at Canoo. Hector Ruiz, the company’s General Counsel and Corporate Secretary, also resigned on October 31, with Sean Yan taking his place. In addition, the company announced temporary furloughs for 23% of its factory workers in Oklahoma City for a period of twelve weeks.
Canoo’s recent financial performance has raised concerns. The company reported a meager $605,000 in revenue for the three months ending June, along with an adjusted net loss per share of $0.61. As of June 30, Canoo held just $19.1 million in cash, cash equivalents, and restricted cash.
Further complicating matters is Canoo’s decision to relocate its headquarters to Justin, Texas. While this move signals a shift towards a more cost-effective operating model, it also involves relocating approximately 137 engineering positions from California to Texas and Oklahoma, starting in the fourth quarter of 2024.
Canoo’s new CFO, Kunal Bhalla, will face the daunting task of stabilizing the company’s finances and navigating through these challenging times. Investors will be closely watching to see how Bhalla and the rest of the executive team address the company’s financial woes and ultimately achieve profitability.
