Canoo Faces Crisis as CFO and General Counsel Resign

Canoo, an electric vehicle startup, experienced a significant shake-up as its chief financial officer Greg Ethridge and general counsel Hector Ruiz resigned on October 31. This event is part of a broader trend of executive departures within the organization, which has been grappling with financial instability and efforts to achieve mass adoption of its electric work vans. The company has already announced layoffs, furloughing 30 workers in Oklahoma for 12 weeks due to a realignment of operations. In the wake of these resignations, Canoo has appointed Kunal Bhalla, the former chief of staff to CEO Tony Aquila, as the new CFO, with a base salary of $300,000. Associate general counsel Sean Yan is set to replace Ruiz. Notably, these changes come shortly after the closure of Canoo’s original headquarters in Los Angeles in favour of operations in Texas and Oklahoma. Canoo's financial woes are well-documented, with the company reporting only $19 million in total cash by June 30, 2024, and having borrowed a total of $3.9 million from Aquila’s fund. These executive changes signal ongoing struggles as Canoo seeks to stabilize its operations and navigate its path toward market competitiveness. The combination of key leadership exits and financial difficulties raises concerns about the future of Canoo as it attempts to realign itself in a highly competitive electric vehicle market.