Canoo's CTO Leaves Company

Canoo, the electric vehicle startup, has announced the departure of its Chief Technology Officer, Sohel Merchant, a founding member of the company established in late 2017. His exit leaves only one founding member, Chief Engineer Christoph Kuttner, remaining with the company. While Canoo has not commented on the departure, it comes at a critical time as the company undergoes significant restructuring. The reorganization includes the closure of Canoo's Los Angeles headquarters, with nearly 200 employees being asked to relocate to Texas or Oklahoma. This shift is part of Canoo's ongoing transformation since going public in late 2020 through a merger with a special purpose acquisition company (SPAC). Following this merger, CEO Tony Aquila has altered the company's direction, moving away from plans to sell electric vans to individual consumers. In late 2021, Aquila announced a relocation of the headquarters to Bentonville, Arkansas, in pursuit of a partnership with Walmart, which ultimately resulted in a low-risk deal for the retailer. Despite this agreement, Canoo has struggled to deliver a significant volume of vehicles. The anticipated move to Bentonville has not materialized, and the company is now focusing on establishing a manufacturing facility in Oklahoma, which remains unbuilt. As of June 30, Canoo reported a mere $19.1 million in funds, highlighting the financial challenges the company faces as it attempts to navigate its future in the competitive EV market.