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Canoo Electric Vehicle Startup (NASDAQ:GOEV) warned Monday about its ability to continue operating, highlighting its dwindling cash reserves amid the crisis in the electric vehicle market.
Shares of the company based in Torrance, California dropped by 26% in extended trade.
The manufacturer of the electric vehicle said so would be forced to cease or reduce its activities if it was unable to obtain sufficient additional financing.
The company reported a net loss of $29 million in the fourth quarter. Its cash and cash equivalents stood at $6.4 million as of Dec. 31, compared with $36.6 million in the same period last year.
Canoo (GOEV) forecasts 2024 revenues of $50 million to $100 million, compared to analyst estimates of $152.5 million.
Last week, the New York Stock Exchange announced that it had begun delisting the common shares of electric vehicle startup Fisker (OTC:FSRN) due to their “abnormally low” price.