But is it an EV company too many?
When the original Tesla Roadster first broke cover, we were apprehensive, to say the least. Part of this was a result of a popular television show from England that had us believing the worst of the car. Nevertheless, Tesla is one of the most valuable companies in the world today, and with more and more traditional manufacturers heading down the path of electrification, investors are looking for another golden goose. Canoo is a potential candidate and the Los Angeles-based company is now going public - before it has even sold a single vehicle. So why go on sale now? More importantly, how is this possible?
First, a little background. Canoo may be relatively unknown, but the company has been working with Hyundai to develop a new "skateboard" platform for electric vehicles. So although the company has not yet sold anything, it is showing promise if a massive automaker like Hyundai -and Kia by extension - is interested in working with it.
In order to get itself listed on the Nasdaq exchange, Canoo will merge with a publicly-traded shell company. This loophole exists to allow a company like Canoo to go public without all the red tape and financial disclosures associated with a traditional IPO, or initial public offering.
Naturally, we can understand the eagerness of investors to find the next big thing for EVs, but with companies like Lucid, Lordstown, and Nikola Motors already joining the party, competition will be stiff. To set itself apart, Canoo will not be selling any vehicles. Rather, its vehicles will be offered as part of a subscription service. As long as you pay for it, the car is yours. If you get bored or want to upgrade, you simply end the subscription.
This sounds very promising, especially for those who want the freedom of a car without the commitment of a long-term financing agreement.