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EV startup Canoo (GOEV) released its fourth-quarter earnings Thursday as it enters a critical phase of development. After resolving the SEC investigation and agreeing to pay $1.5 million, Canoo says it has new opportunities to access funding.

Canoo resolves SEC dispute with $1.5M settlement

Since its foundation in Canoo 2017, the EV maker has had its fair share of highs and lows.

After going public in 2020, along with a slew of other electric vehicle startups (and SPACs in general), Canoo became one of the talked about stocks with significant growth potential in the EV segment.

However, the hype soon dissipated. In April 2021, the SEC opened an investigation into the company’s merger with special acquisition purpose company (SPAC), Hennessy Capital Acquisition Corp (HCAC), to go public.

The scrutiny was part of a broader investigation that included several popular EV stocks such us Nikola (NKLA), Lordstown Motors (RIDE), and Faraday Future (FFIE).

The SEC informed the company that it believed, under its investigation, that certain former senior executives misled investors in late 2020 and early 2021 regarding revenue projections.

In March 2021, new leadership revised the projections to zero after eliminating engineering services as a potential revenue stream.

After a long-awaited battle, Canoo revealed during Thursday’s Q4 earnings release it had reached the conclusion of the SEC investigation, agreeing to pay a $1.5 million settlement.

With the investigation and other “legacy matters” behind it, Canoo says it’s ready to enter the next phase of its EV rollout.

Canoo-SEC-Q4
Canoo electric pickup (Source: Canoo)

Canoo Q4 highlights and business updates

Besides the SEC investigation, Canoo had several exciting developments in the quarter, including delivering its Light Tactical Vehicle (LTV) electric vehicle to the US Army.

In addition to existing clients, including Walmart, Zeeba, Kingbee, and recently Shindler Elevator, Canoo expanded its network to Saudi Arabia in a new distributor partnership with GCC Olayan.

Canoo still didn’t generate revenue in the quarter, ending Q4 with a net loss of $80.2 million for a loss of $487.7 million on the year.

The EV maker ended the quarter with cash and equivalents of $36.6 million. According to Canoo’s CFO Ken Magnet, the company is “exploring a number of diversified funding sources.” Magnet added now that the SEC investigation is concluded, the company can file for things like the Department of Energy’s loan program and “things of that nature.”

Canoo struggled to stay afloat last year, expressing significant doubt it would be able to continue operations after posting a net loss of over $125 million in the first quarter and another $164 million loss in Q2.

Looking ahead, Canoo expects operating expenses to be between $55 million to $70 million with CAPEX between $30 million to $45 million in the first quarter of 2023 as it enters the next stage of development.

As CEO Tony Aquila describes the next phase will be “more focused on milestones versus event-based or just-in-time” that will “lower the cost, make more efficicent use of capital and allow us to focus on long term success.”

Canoo says it will benefit from the IRA bill with domestic production. The company began phase 1 SOPin Mivchigan and kicked off phase 2 SOP at OKC, which includes an EV battery module manufacturing plant in Oklahoma.

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E-bike makers push speed-reduction updates after California’s stricter new laws

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E-bike makers push speed-reduction updates after California's stricter new laws

Earlier this month, California enacted new regulations for electric bikes that resulted in stricter speed limits on e-bikes with throttles. At the time, it was unclear how electric bike makers would respond to the new regulations, but we’re now starting to see at least one manufacturer pushing to bring its existing e-bikes owned by California residents into compliance.

The new laws remove ambiguity in the Class 2/Class 3 e-bike categorization. Formerly, many e-bikes were designed to operate in either category depending on the owner’s desires. Such bikes could operate as Class 2 e-bikes reaching max speeds of 20 mph (32 km/h) with a throttle, or as Class 3 e-bikes reaching higher speeds of 28 mph (45 km/h) on pedal assist-only.

In fact, the overwhelming majority of Class 3 e-bikes sold in the US used this design, offering hybrid compliance for functionality as both Class 2 and Class 3 e-bikes.

After California’s new laws removed any ambiguity between the classes, it is now clear that e-bikes in the state will need to function either only as Class 2 e-bikes (throttle up to 20 mph) OR Class 3 e-bikes (up to 28 mph but without any throttle).

Globe Haul ST cargo e-bike

It was unclear whether existing e-bikes already sold prior to the law’s enactment would receive an exemption, but bicycle manufacturer Specialized doesn’t seem to be taking any chances.

Specialized is the maker of the Globe line of cargo e-bikes, and recently sent out an update to owners that would help them bring their e-bikes into compliance with California’s new stricter regulations.

Like so many other electric bikes on the market, the Globe e-bikes came with throttles allowing 20 mph speeds without pedaling, but could also reach up to 28 mph on pedal assist.

A new firmware update promoted by the company will essentially restrict its e-bikes to purely Class 2 operation, removing the motor’s ability to assist the bike in going any faster, even when pedaling without throttle operation.

The update will also come with a Class 2 compliance sticker that replaces the previous Class 3 sticker.

To install the voluntary update, Globe owners are encouraged to visit their local Specialized dealer.

A copy of the update letter was shared on Reddit and can be seen below.

Electrek’s Take

This is an interesting approach, because it indicates an understanding by Specialized that it is responsible for any of its e-bikes already on the road that have now been made non-compliant by the new law.

There are basically two main options to “fix” these previously hybrid Class 2/3 e-bikes and bring them into compliance. One is to unplug and remove the throttle, turning the bike into a true Class 3 e-bike under CA regulations. The other is to remove the ability for the motor to assist at speeds over 20 mph, turning it into a Class 2 e-bike. That latter is what Specialized appears to have decided to go with, and it makes sense to me. If you asked most owners of these e-bikes about which they’d give up if they had to, they’d probably tell you “take my 21-28 mph speed but leave me my throttle”. Throttles are simply such a major part of e-bikes in North America that most riders would give up the whole bike if they were forced to give up the throttle.

The bigger question here is how many Globe riders will actually install this update. Since you need to not only opt-in to it, but also physically visit a dealer to do it, I have to imagine that the vast majority of riders will simply ignore the update altogether, keeping their faster non-compliant speed on an e-bike with a throttle. I’m not saying that’s the right thing to do, but I am saying it’s what will happen in the real world.

And if we are being honest, these Globes aren’t even the e-bikes that are at the heart of the issue. Most CA residents are more concerned with teenagers ripping down sidewalks on moped-style e-bikes, not the local moms and dads riding to Trader Joe’s on their sensible, upscale cargo e-bikes that just happen to have hybrid Class 2/3 performance.

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Europe’s wind power hits 20%, but 3 challenges stall progress

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Europe’s wind power hits 20%, but 3 challenges stall progress

Wind energy powered 20% of all electricity consumed in Europe (19% in the EU) in 2024, and the EU has set a goal to grow this share to 34% by 2030 and more than 50% by 2050.

To stay on track, the EU needs to install 30 GW of new wind farms annually, but it only managed 13 GW in 2024 – 11.4 GW onshore and 1.4 GW offshore. This is what’s holding the EU back from achieving its wind growth goals.

Three big problems holding Europe’s wind power back

Europe’s wind power growth is stalling for three key reasons:

Permitting delays. Many governments haven’t implemented the EU’s new permitting rules, making it harder for projects to move forward.

Grid connection bottlenecks. Over 500 GW(!) of potential wind capacity is stuck in grid connection queues.

Slow electrification. Europe’s economy isn’t electrifying fast enough to drive demand for more renewable energy.

Brussels-based trade association WindEurope CEO Giles Dickson summed it up: “The EU must urgently tackle all three problems. More wind means cheaper power, which means increased competitiveness.”

Permitting: Germany sets the standard

Permitting remains a massive roadblock, despite new EU rules aimed at streamlining the process. In fact, the situation worsened in 2024 in many countries. The bright spot? Germany. By embracing the EU’s permitting rules — with measures like binding deadlines and treating wind energy as a public interest priority — Germany approved a record 15 GW of new onshore wind in 2024. That’s seven times more than five years ago.

If other governments follow Germany’s lead, Europe could unlock the full potential of wind energy and bolster energy security.

Grid connections: a growing crisis

Access to the electricity grid is now the biggest obstacle to deploying wind energy. And it’s not just about long queues — Europe’s grid infrastructure isn’t expanding fast enough to keep up with demand. A glaring example is Germany’s 900-megawatt (MW) Borkum Riffgrund 3 offshore wind farm. The turbines are ready to go, but the grid connection won’t be in place until 2026.

This issue isn’t isolated. Governments need to accelerate grid expansion if they’re serious about meeting renewable energy targets.

Electrification: falling behind

Wind energy’s growth is also tied to how quickly Europe electrifies its economy. Right now, electricity accounts for just 23% of the EU’s total energy consumption. That needs to jump to 61% by 2050 to align with climate goals. However, electrification efforts in key sectors like transportation, heating, and industry are moving too slowly.

European Commission president Ursula von der Leyen has tasked Energy Commissioner Dan Jørgensen with crafting an Electrification Action Plan. That can’t come soon enough.

More wind farms awarded, but challenges persist

On a positive note, governments across Europe awarded a record 37 GW of new wind capacity (29 GW in the EU) in 2024. But without faster permitting, better grid connections, and increased electrification, these awards won’t translate into the clean energy-producing wind farms Europe desperately needs.

Investments and corporate interest

Investments in wind energy totaled €31 billion in 2024, financing 19 GW of new capacity. While onshore wind investments remained strong at €24 billion, offshore wind funding saw a dip. Final investment decisions for offshore projects remain challenging due to slow permitting and grid delays.

Corporate consumers continue to show strong interest in wind energy. Half of all electricity contracted under Power Purchase Agreements (PPAs) in 2024 was wind. Dedicated wind PPAs were 4 GW out of a total of 12 GW of renewable PPAs. 

Read more: Renewables could meet almost half of global electricity demand by 2030 – IEA


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Podcast: New Tesla Model Y unveil, Mazda 6e, Aptera solar car production-intent, more

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Podcast: New Tesla Model Y unveil, Mazda 6e, Aptera solar car production-intent, more

In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss the official unveiling of the new Tesla Model Y, Mazda 6e, Aptera solar car production-intent, and more.

The show is live every Friday at 4 p.m. ET on Electrek’s YouTube channel.

As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.

After the show ends at around 5 p.m. ET, the video will be archived on YouTube and the audio on all your favorite podcast apps:

We now have a Patreon if you want to help us avoid more ads and invest more in our content. We have some awesome gifts for our Patreons and more coming.

Here are a few of the articles that we will discuss during the podcast:

Here’s the live stream for today’s episode starting at 4:00 p.m. ET (or the video after 5 p.m. ET):

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