Electric van startup Canoo has taken drastic measures to stay afloat, imposing a "mandatory unpaid break" on its remaining employees through at least the end of the year. According to an email obtained by TechCrunch, the company has informed its staff that they will be locked out of Canoo's systems by the end of the day on Friday, and benefits will continue through December.

This move comes on the heels of a recent announcement that Canoo would be furloughing nearly 100 employees and idling an assembly facility in Oklahoma due to a lack of funding. The exact number of employees affected by the unpaid break is unclear, as the company and CEO Tony Aquila did not respond to requests for comment. The sudden and drastic measures have raised concerns about the future of the startup, which has been struggling to gain traction in the competitive electric vehicle market.

The electric van startup has been facing significant challenges in recent months, including production delays and funding issues. Despite its promising concept, Canoo has failed to gain significant traction in the market, leading to a cash crunch that has forced the company to take drastic measures to stay afloat. The mandatory unpaid break is a clear indication that the company is fighting for survival, and its ability to recover from this setback remains uncertain.

The impact of Canoo's struggles on the broader electric vehicle market is still unclear, but it highlights the significant challenges that startups face in competing with established players. The electric vehicle market is highly competitive, with companies like Tesla, Rivian, and Lucid Motors dominating the landscape. Canoo's struggles serve as a reminder that even promising startups can falter in the face of intense competition and funding challenges.

As the electric vehicle market continues to evolve, the fate of Canoo remains uncertain. The company's ability to recover from this setback will depend on its ability to secure funding and regain momentum in the market. For now, the mandatory unpaid break serves as a stark reminder of the challenges that startups face in the cutthroat world of electric vehicles.

This story is developing, and we will continue to provide updates as more information becomes available.