Canoo’s CEO’s Jet Costs Double What the Company Earned Last Year

Canoo’s CEO Criticized for Luxurious Private Jet Expenses amid Financial Struggles

Canoo, an electric vehicle company, showcased a prototype of its EV at the CES technology trade show in Las Vegas in 2022. However, despite the display, the company faced scrutiny for spending $1.7 million on CEO Tony Aquila’s private jet bills. This amount was twice the revenue it generated in 2023, and investors were concerned about such spending, especially when a company is struggling as Canoo was. The EV maker reported a loss of $302 million last year, reflecting the challenges it faces in an industry with slowing demand.

Canoo’s CEO, Tony Aquila, received $1.7 million in “aircraft reimbursements” for his private jet expenses in 2022 while the company only had $886,000 in revenue. Aquila owns approximately 14% of Canoo and also received $1.3 million for air travel expenses in 2022. Established in 2017, Canoo produces passenger vehicles, delivery vans for Walmart, and crew transport vehicles for NASA. Despite these efforts, the company is struggling to generate profits and faces cash flow issues while trying to scale up production.

The lack of sufficient cash flow has forced Canoo to consider raising additional funds to sustain its operations. This challenge coupled with several executive departures in 2022 contributed to a 26% stock decline following the company’s earnings report. When businesses like Canoo overspend on private jet usage, shareholders and investors become concerned about the company’s financial health and management decisions.

Excessive spending practices have led to backlash for companies like WeWork purchasing a luxury jet and General Electric’s former CEO Jack Immelt’s extravagant travel accommodations.

In conclusion, businesses must be mindful of their expenditures when they are struggling financially as excessive spending practices can lead to negative consequences such as scrutiny from shareholders and investors who are concerned about the financial health of the company.

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