Why Canoo Collapsed: Strategy Shifts, Financial Struggles, and Bankruptcy
Canoo ($GOEV) started with a lot of potential, but its business strategy changed quickly and the company eventually ran out of money.
When Canoo went public through a SPAC merger in 2020, it promoted three main sources of future revenue: **engineering services, a subscription-based vehicle model, and commercial EV sales**.
Engineering services were supposed to bring in revenue before Canoo’s own vehicles reached the market. The company projected **$120 million in engineering-services revenue for 2021** and highlighted its relationship with Hyundai as a sign that its technology had commercial potential.
But on **March 29, 2021**, Canoo announced that it would **deemphasize engineering services** and move away from the subscription strategy it had previously promoted. It later disclosed that its 2020 revenue came from consulting work tied to a single obligation that had already been completed in July 2020.
Questions also grew around the Hyundai relationship and Canoo’s ability to turn its plans into actual revenue. By April 2021, $GOEV had fallen to **$8.05**.
The company continued to struggle with cash, financing, and production. After years of financial problems, Canoo filed for **Chapter 7 bankruptcy in 2025**.
Investors later sued, alleging that Canoo had misled them about its engineering-services business, subscription model, and the importance of its Hyundai relationship.
The case has now moved toward a **tentative settlement**. The terms are still being finalized, but investors can currently submit an application that will be processed once the claims period officially opens. So if you bought $GOEV shares between **2020 and 2021**, you can check if your eligible and file a clime [here](https://11th.com/cases/canoo-investor-settlement)
Anyway, has anyone here invested in $GOEV? How much were your losses, if so?
https://preview.redd.it/2l227wy3lauh1.jpg?width=2348&format=pjpg&auto=webp&s=e441a6517f0aa9a0660d66f0cd505e5c14285b61