Canoo could get a boost from Oklahoma City’s coffers.
Canoo, the US EV startup aspiring to make and sell its LTV and LDV electric vans, hasn’t been in great straits this year. The company has openly struggled with cash flow. In early 2022, the brand said that it wasn’t sure if it had the money to continue operating.
Things have turned upward slightly, though. Walmart ordered 10,000 vans for its last-mile delivery service, and now it looks like Oklahoma City is throwing some cash at the startup, via $1 million worth of incentives.
The brand had been looking for a home to build out its manufacturing facilities, and Oklahoma City is offering it. The partnership between the city and Canoo was signed this week.
If Canoo can pull it off, the factory should provide up to 550 jobs in the Oklahoma City area. The $1 million is only available if Canoo comes through with the promise, though. If the brand pulls out, that money goes away. “And if nothing ever happens, we’ll have expended nothing. But if the plans are realized, OKC will have gained hundreds of high-paying manufacturing jobs in a growing sector of the modern economy,” said Oklahoma City Mayor David Holt, via Twitter.
Canoo posted a loss of $125 million, but it assures investors that it can raise money to continue going, and get the factory up and running. Currently, Canoo hasn’t released any concrete groundbreaking plans, but just that it wants to deliver cars in 2023.
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