Home » Canoo Relocates Headquarters from California to Texas to Boost EV Production – Offers Relocation to 70% of Employees, CTO Sohel Merchant Resigns

Canoo, an electric vehicle startup, has announced moving its headquarters from Torrance, California, to the Dallas-Fort Worth area in Texas. This decision comes as the company aims to increase the production of its electric delivery vans. Around 70% of the employees from the California office will be offered the chance to relocate to Texas or Oklahoma. Along with this move, Canoo’s chief technology officer, Sohel Merchant, has resigned from the company.

Canoo Moves Headquarters from California to Texas Amid Leadership Changes

Electric vehicle startup Canoo is making major changes, including moving its headquarters from California to Texas. This move comes as Canoo faces challenges in ramping up production of its electric delivery vans. Additionally, Sohel Merchant, Canoo’s chief technology officer and one of its founding members, has resigned, signaling another shift in the company’s leadership.

Headquarters Relocation

Canoo will close its current headquarters in Torrance, California, and relocate to Justin, Texas, near Dallas-Fort Worth. This Texas location has been part of Canoo’s operations for a few years. The decision to move is part of Canoo’s strategy to focus on its commercial vehicle production, especially its electric delivery vans. About 137 of the 194 employees from the California office will have the opportunity to move to Texas or Oklahoma, where Canoo is building a new factory.

Leadership Changes

The move to Texas follows the resignation of Sohel Merchant, Canoo’s chief technology officer and one of the company’s original founders. Merchant’s departure leaves Christoph Kuttner, the chief engineer, as the only remaining member of the original founding team. In recent years, Canoo has seen several leadership changes, including the exit of two former CEOs and the chief designer.

Challenges and Future Plans

Canoo faces several challenges as it works to increase the production of its electric vehicles. According to recent financial reports, Canoo had $19.1 million in funds as of June 30. While Canoo has delivered a few electric delivery vans to customers, including the U.S. Postal Service, its main production facility in Pryor, Oklahoma, is not yet fully operational. Canoo is also focusing on its new factory in Oklahoma City, aiming to boost production capacity.

Past Moves and Business Strategy

This is not the first time Canoo has considered moving its headquarters. In 2021, the company planned to move to Arkansas during contract talks with Walmart. However, those plans did not materialize, and Canoo shifted its focus to its facilities in Oklahoma. Recently, Canoo acquired assets from Arrival, another electric vehicle startup that went bankrupt, to strengthen its position in the market.

Conclusion

Canoo’s decision to move its headquarters from California to Texas marks a significant change in the company’s strategy. With the resignation of a key leader and ongoing challenges in production, Canoo is making efforts to position itself for growth in the electric vehicle market. The company’s focus on building electric delivery vans and expanding its operations in Texas and Oklahoma could help it achieve its goals in the competitive EV industry.

These changes indicate Canoo’s commitment to adapting and evolving in the fast-paced world of electric vehicles. While there are challenges ahead, the move to Texas and the development of new production facilities show Canoo’s dedication to pushing forward and making its mark in the EV market.

Source

Rate this post

Mansoor Ali, a Feature Writer, embarked on his journey five years ago with showroomex.com, fueled by his enthusiasm for cars. Starting as an eager journalist, he quickly became a seasoned professional, expanding his expertise to cover both bikes and cars. (Full Bio)