Breaking News: Canoo's Chief Technology Officer Sohel Merchant Departs Amid Company Reorganization
In a surprising turn of events, Canoo's chief technology officer, Sohel Merchant, has left the company, according to sources familiar with the matter. This departure marks a significant shift for the EV startup, as Merchant was one of the founding team members who helped create the company back in late 2017. With his exit, only one founding team member, chief engineer Christoph Kuttner, remains at the helm.
Canoo, which recently went public as part of a merger with a SPAC, has been undergoing a major reorganization. The company is shutting down its Los Angeles headquarters and asking employees to relocate to either Texas or Oklahoma. This move comes as chairman Tony Aquila has shifted the company's focus from selling electric vans to everyday consumers to targeting the commercial EV market.
Despite securing a deal with Walmart, Canoo has yet to deliver significant volumes of vehicles and is facing financial challenges. With a reported cash balance of just $19.1 million as of June 30, the company has been struggling to stay afloat. Furthermore, the departure of key founding team members over the years has raised concerns about Canoo's future direction and stability.
In conclusion, Canoo's recent developments highlight the challenges facing the company as it navigates a changing market landscape. Investors and consumers alike should closely monitor Canoo's progress and strategic decisions to assess the company's long-term viability in the competitive EV industry.