April 22, 2024 12:09 am
Canoo’s CEO’s Jet Costs Double What the Company Earned Last Year

In 2022, Canoo showcased a prototype of its electric vehicle at the CES technology trade show in Las Vegas. However, despite the impressive display, the company faced scrutiny for spending $1.7 million on CEO Tony Aquila’s private jet bills, which was twice the revenue it generated in 2023. Investors are concerned about such spending, especially when a company is struggling as Canoo is. The EV maker reported a loss of $302 million last year, reflecting the challenges it faces in an industry with slowing demand.

Canoo’s CEO received $1.7 million in “aircraft reimbursements” for his private jet expenses in 2022 while the company only had $886,000 in revenue. Aquila owns approximately 14% of Canoo and also received $1.3 million for air travel expenses in 2022. Despite producing passenger vehicles, delivery vans for Walmart and crew transport vehicles for NASA since its establishment in 2017, Canoo has been struggling to generate profits and cash flow issues while trying to scale up production.

The lack of sufficient cash flow has forced Canoo to consider raising additional funds to sustain its operations. This challenge coupled with several executive departures in 2022 has contributed to a 26% stock decline following the company’s earnings report. When businesses like Canoo overspend on private jet usage, shareholders and investors become concerned about the company’s financial health and management decisions.

Similar cases such as WeWork purchasing a luxury jet and General Electric’s former CEO Jack Immelt’s extravagant travel accommodations have faced backlash for their excessive spending practices.

In conclusion, Canoo’s struggle with generating profits and cash flow issues has led to concerns from investors about its CEO’s private jet spending habits. The lack of adequate funds has forced the company to consider raising more money to sustain operations while facing backlash from shareholders over such practices as WeWork and GE’s former CEO’s extravagant travel accommodations have faced before.

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