Is there a hidden message for Tesla CEO Elon Musk? One by one, EV makers in the US are going bankrupt, the latest being Canoo
Elon Musk, who is one of the promoters of electric vehicles in the US, needs to look behind his shoulder and see the status of other companies that are also in the EV race. For starters, the list of companies developing electric vehicles in the US, or are even importing them, have begun going bankrupt for a multitude of reasons.
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Should Canoo's bankruptcy filing scare Elon Musk?
This is something that should bother Tesla CEO Elon Musk as it goes without saying that Tesla could be the next name on this gloomy list. The latest EV maker now waving the white flag before the US government is Canoo, which is already liquidating its assets in a Chapter 7 proceeding in the Delaware Bankruptcy Court, says a TechCrunch report.
There are also claims that the company went on a massive lending spree over the last few months of the Biden administration, and is now paying the price of it through thorough asset liquidation. Canoo has stated that it owes a whopping $164 million in total liabilities to hundreds of creditors.
The detailed reasons of declaring bankruptcy are complicated, but this is now a major wake-up call for Elon Musk and Tesla, as they are in the same field of operations as Canoo, but on an even bigger and global scale.
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