Canoo Inc (NASDAQ:GOEV), the electric vehicle maker, is set to start trading in New York around 30% lower on Tuesday after it warned last night that 2024 revenue would come in lower than analysts had forecast.
Sales in the current financial year are predicted in a wide range, between US$50 million and US$100 million, versus a prior Wall Street consensus forecast of US$152.5 million.
The group also warned that cash is continuing to dwindle amid an industry-wide drop in demand for EV cars.
It represents the eighth consecutive quarter that the Californian startup has warned investors about its ability to continue operations without finding new sources of funding.
"We will continue to make progress towards accessing additional forms of debt and other non-dilutive forms of capital as we move into 2024… Let’s be very clear. We’ll only raise the capital that we need,” said Greg Ethridge, the group’s finance chief.
Higher interest rates across varying regions have weakened the appetite for electric vehicles in the last year and it has led to a range of competitors like Tesla Inc (NASDAQ:TSLA, ETR:TL0) to slash prices to drum up additional demand.
Other companies have sought additional funding from institutional investors as seen by luxury EV maker Lucid, which penned a deal to receive around US$1 billion from the Saudi Arabian Public Investment Fund.
Meanwhile, others haven’t been as lucky, with groups like Fisker Inc (NYSE:FSR) nearing bankruptcy.
Fisker shares are being delisted from the stock exchange after slumping to “abnormally low” price levels after a deal with a big automaker fell through last month.
Production at the company has been paused and while talks are ongoing on how it can drum up additional cash, the weak demand means it is edging closer to administration.