Canoo Inc., an electric vehicle startup, is following in the footsteps of Tesla by shifting its headquarters from California to Texas. This move comes as the company is also undergoing an employee reorganization. Earlier this month, Canoo announced its intention to relocate its headquarters to Justin, Texas. The company has already updated its LinkedIn profile to reflect the new location.
In a filing with the Securities and Exchange Commission (SEC), Canoo revealed that it is implementing an employee reorganization plan that includes a permanent reduction in its workforce at its headquarters in Torrance, California. The company is offering relocation opportunities to a majority of its Torrance employees, providing them the option to move to facilities in either Oklahoma or Texas. Out of the 194 employees in Torrance, approximately 137 are expected to relocate, while the remaining employees are scheduled to be terminated on October 15.
The reason behind Canoo’s decision to relocate has not been publicly disclosed. However, the company entered into a lease agreement in January 2023 for an 8,000-square-foot facility in Texas. This lease, signed with an entity owned by Canoo CEO Tony Aquila, is set to expire on March 31, 2026, with an option to extend the term for an additional five years.
This move echoes Tesla’s relocation of its headquarters to Texas in 2021. Additionally, Tesla shifted its incorporation from Delaware to Texas earlier this year. While California has been Canoo’s headquarters since 2017, the company’s decision to move to Texas indicates a potential shift in the company’s focus and strategy.
