Electric vehicle startup Canoo has officially thrown in the towel, announcing yesterday that it has filed for Chapter 7 bankruptcy in Delaware and will cease operations immediately. The company, which had been struggling to stay afloat for years, estimates its assets to be worth $126 million, while owing over $164 million to its creditors, according to its filing.

The news comes as no surprise, given Canoo's recent struggles. Last month, the company idled its Oklahoma operations and put its employees on a mandatory unpaid break, signaling its dire financial situation. The startup had also lost a steady stream of executives, including all of its founders, in recent months.

Canoo's decision to file for bankruptcy was reportedly due to its failed attempts to secure funding from the US Department of Energy's Loan Programs Office and foreign investors. The company had been relying heavily on government support to stay afloat, but ultimately failed to secure the necessary funding to continue operations.

As a result of the bankruptcy filing, the US will appoint a Bankruptcy Trustee to oversee the liquidation of Canoo's assets and the distribution of proceeds to creditors. The company's chairman and CEO, Tony Aquila, expressed disappointment at the outcome, thanking various government and business entities that Canoo had worked with during its tenure.

Canoo's demise is a significant blow to the electric vehicle industry, which has seen rapid growth in recent years. The startup had secured several high-profile deals, including a contract to produce shuttles for NASA's Artemis crew and an agreement to build 4,500 electric delivery vans for Walmart. The company's failure raises questions about the viability of EV startups and the challenges they face in competing with established players in the industry.

The bankruptcy filing also highlights the risks associated with investing in EV startups, which often rely on government support and funding to stay afloat. As the industry continues to evolve, it remains to be seen how other EV startups will fare in the face of increasing competition and funding challenges.

In conclusion, Canoo's bankruptcy filing marks a significant turning point in the electric vehicle industry, highlighting the challenges faced by EV startups and the importance of sustainable business models. As the industry continues to mature, it will be crucial for startups to develop robust business strategies and secure reliable funding sources to ensure long-term viability.