Canoo’s Chief Technology Officer Sohel Merchant Leaves the Company
A Sizable Reorganization Underway at the EV Startup
Sohel Merchant, one of the founding members and chief technology officer (CTO) of Canoo, has left the company. This development comes as Canoo is undergoing a significant reorganization, which includes closing down its Los Angeles headquarters and relocating most of its nearly 200 employees to either Texas or Oklahoma.
According to two people familiar with his departure, Merchant’s exit from Canoo marks another significant loss for the EV startup, which has been in a state of constant change since going public in late 2020 through a merger with a special purpose acquisition company (SPAC). Under the leadership of chairman Tony Aquila, who took over as CEO shortly after the SPAC merger, Canoo shifted its focus from selling electric vans to everyday people to targeting the commercial EV space.
Aquila’s Plans for Canoo: A Series of Shifts and Setbacks
Since taking over as CEO, Aquila has made several significant decisions that have impacted Canoo’s direction. In late 2021, he announced plans to move the company’s headquarters from Los Angeles to Bentonville, Arkansas, the hometown of Walmart, which Canoo was courting as a major customer. However, this move never materialized, and instead, Aquila shifted his focus toward Oklahoma, where he announced plans for a massive manufacturing facility that has yet to be built.
In 2022, Canoo signed a deal with Walmart, but the arrangement was extremely low-risk for the retailer, and the EV maker has yet to ship any meaningful volume of vehicles as part of the deal. Moreover, despite testing vehicles for the United States Postal Service (USPS), NASA, and the Department of Defense, Canoo is currently facing financial struggles, having reported only $19.1 million in cash as of June 30.
The Departure of Key Founding Members
Merchant’s departure from Canoo marks another significant loss for the company, which has seen nearly all of its founding team leave over time. Co-founder and former CEO Stefan Krause left the company in 2020, followed by fellow co-founder Ulrich Kranz, who resigned in 2021 after a few years working on Apple’s secretive EV project. Another core co-founder, chief designer Richard Kim, also left in 2023.
A Company in Flux
Canoo’s constant state of change has raised questions about the company’s stability and direction. With Merchant’s departure and the ongoing reorganization, it remains to be seen how this will impact the company’s future plans and partnerships, including its deal with Walmart and the development of a manufacturing facility in Oklahoma.
Timeline of Key Events
- 2020: Canoo goes public through a merger with a SPAC.
- Late 2021: Aquila announces plans to move the company’s headquarters from Los Angeles to Bentonville, Arkansas.
- 2022: Canoo signs a deal with Walmart.
- 2023: Richard Kim leaves the company.
Conclusion
Sohel Merchant’s departure from Canoo marks another significant loss for the EV startup, which has been in a state of constant change since going public. With its ongoing reorganization and financial struggles, it remains to be seen how this will impact the company’s future plans and partnerships.
