Canoo Inc. GOEV has reportedly spent more than double its annual revenue on the private jet expenses of its CEO, Tony Aquila, in 2023.
What Happened: The electric vehicle (EV) startup’s 2023 earnings report, released on Monday, revealed a significant disparity between its spending and revenue, TechCrunch reported. The report also highlighted the company’s ongoing financial struggles.
Canoo’s revenue for 2023 was $886,000, a substantial increase from the previous year’s zero. This was attributed to delivering 22 vehicles to clients such as NASA and the state of Oklahoma. The company also managed to cut its operating losses by almost half, from $506 million in 2022 to $267 million in 2023. However, its total net annual losses still amounted to $302.6 million.
Despite these improvements, the company’s spending habits, particularly on Aquila’s private jet, have raised concerns. In 2023, Canoo spent $1.7 million to reimburse Aquila Family Ventures, the CEO’s entity, for using the aircraft. This amount is double the company’s total revenue for the year.
Additionally, Canoo paid Aquila Family Ventures $1.7 million in 2023, $1.1 million in 2022, and $500,000 in 2021 for shared services support at its corporate office facility in Justin, Texas.
These expenses, while significant, may pale in comparison if Canoo meets its projected revenue of $50 million to $100 million for 2024.
Why It Matters: The news of Canoo’s excessive spending comes at a time when the wealth gap is a growing concern. In 2023, the global stock market’s strong performance further widened the wealth gap, benefiting the world’s richest individuals, including tech billionaires like Aquila. This has sparked discussions about the wealthy’s responsibility to contribute to societal welfare.
Meanwhile, Aquila’s lavish spending on his private jet is not an isolated incident. Other tech billionaires, such as Mark Zuckerberg and Jeff Bezos, have also made headlines for their extravagant purchases, raising questions about the ethical implications of such spending.
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