Thx again paunch. Appreciate you posting this. What I hear, they have a plan, they are following that plan. If the Canoo team is happy with their progress then who am I to judge. I’m happy I invested and I’m glad I’ve held on to all of my shares. My one concern is, it will be several years before I can buy myself a Canoo pickup. Such is life.
A 30% drop overnight seems a bit extreme. If we are still making about one unit every two days or so, that is concerning. I understand moving carefully, however it occurs to me that customers with large orders are likely to come under competitor's influence. This situation is reminiscent of Arcimoto (FUV) and to some degree Aptera. I keep wishing there was something I could do to in some way help. If there was a need for test drivers I could help with that as I am a retired trucker. It sounded like Tony was emphasizing that they are trying to gather as much driving data as possible.I heard something like we have 30,000 miles of road data. That needs to come up exponentially. A focused driver should be able to provide 600 miles per day or 12+k per month. I could definitely do that and most pro drivers could.
I think we needed that much transparent explanations, charts and reasonable answers. Seems like the dilution is ended, we will see manufacturing actions towards 3rd quarter.
Sorry I don't how you got "Seems like the dilution is ended" from the earnings call, end of of 2024 they had about 24 million left and their burn rate is 50 million per quarter, they did raise I think 54 in Q1 of 2024 that mean they have Q1 covered and a bit of Q2, from my understanding they would need funding for Q3 & Q4 and I believe this was the reason stock price tanked 40% right after the earnings were published...
I understand Tony's explanation that they've avoided the Fisker's type model of ramping up capacity to 150k annual run rate ahead of your actual production run and cost rate. But Canoo has already spent $1.5 Billion dollars since inception, and quarterly expenses are still over $30 million. Isn't that the same financially of burning your capital with no production to show for it?
12:20 This very important chart which they use to explain their "step up" production strategy that will save them tons of money and also how they can have a lower break even hurdle as well as being breakeven during the first production run. It clearly shows they will have a -65% gross margin at the first run rate of 3,500 units at N and need another 3 months to get to 10% gross margin. So yes, they will not be breaking even this 2024 year end.
