By going into the electric trucks market, Canoo adopts the same business strategy as that of Tesla. Through its Nasdaq listing, the EV startup plans to raise $600 million to support its production and launch.
On Thursday, December 17, California-based EV startup Canoo unveiled a new multi-purpose delivery van for last-mile deliveries and other small businesses. The company has also put an attractive price point of $33,000 which can scale up in size and cost.
Interestingly, the announcement comes just a week before Canoo’s Nasdaq listing. Canoo said that it will start the production of its MDPV in 2020 and further ramp it up in 2023. However, the company hasn’t yet disclosed any specific plan of production. Speaking to CNBC, Canoo Chairman Tony Aquila said:
“There are many use cases that this vehicle can do. We wanted it to look very smart, very modern but at the same time be very affordable.”
Aquila invested nearly $35 million of his personal wealth in Canoo this summer. Aquila also draws some parallels with Elon Musk‘s business strategy of Tesla Inc (NASDAQ: TSLA). He basically hinted at the way Tesla changed its trajectory from electric cars to electric trucks. Speaking to The Verge, Aquila noted:
“The way I would look at it is this is a re-founding of the company, just kind of like Elon did to Tesla. “He put money in [Tesla], just like I did, became the chair, had a different vision, comes out of the tech world. So I can completely relate and appreciate what he’s done for the industry.”
Canoo Delivery Van Specifications and Partnerships
Canoo said that its new multi-purpose vehicle delivery (MPDV) van will be available in two different models. The smaller one called MPDV1 will come with 230 cubic feet of cargo space. Besides, it will have different battery options offering a range between 130-230 miles. As said, the basic variant will start at $33,000.
The bigger one MPDV2 will have 500 cubic feet of cargo space. Aquila said that it will be first-of-its-kind and something “unheard in the industry”. This will have a range anywhere between 140 to 190 miles.
Canoo has been also making important partnerships for its growth. Previously, it had announced a strategic partnership with a contract manufacturer and auto supplier Magna International. Canoo now plans to go public through reverse mergers with blank-check companies.
After the shareholder approval on Monday, Nasdaq shares will be available the next day for trading on Nasdaq with the ticker of “GOEV”. With the public listing, Canoo is likely to raise $600 million capital that supports the production and launch of its EVs.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
