# Canoo, Lordstown Motors to Fisker, Electric VehicleStartups Run Low on CashAfter SPAC Deals | Tech News (HT Tech) > Electric vehicle startups Canoo, Lordstown Motors and Fisker make unnerving disclosures in midst of market slump. # Canoo, Lordstown Motors to Fisker, Electric Vehicle Startups Run Low on Cash After SPAC Deals ## Electric vehicle startups Canoo, Lordstown Motors and Fisker make unnerving disclosures in midst of market slump. May 14 2022, 09:44 IST ![Follow on Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/follow-us-facebook.png) ![Follow on Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/follow-us-facebook-hover.png) ![Share](https://images.hindustantimes.com/tech/static/revamp/images/png/Share.png) ![Share](https://images.hindustantimes.com/tech/static/revamp/images/png/Shareclicked.png) ![Share on WhatsApp](https://images.hindustantimes.com/tech/static/revamp/images/png/whatsapp.png) ![Share on WhatsApp](https://images.hindustantimes.com/tech/static/revamp/images/png/whatsapp-hover.png) ![Share on Twitter](https://images.hindustantimes.com/tech/static/revamp/images/png/twitter.png) ![Share on Twitter](https://images.hindustantimes.com/tech/static/revamp/images/png/twitter-hover.png) ![Share on Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/facebook.png) ![Share on Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/facebook-hover.png) ![Bookmark](https://images.hindustantimes.com/tech/static/revamp/images/png/Bookmark.png) ![Bookmarked](https://images.hindustantimes.com/tech/static/revamp/images/png/Bookmarked.png) ![EV](https://images.hindustantimes.com/tech/img/2022/05/14/1600x900/JAPAN-HONDA-5_1652500596774_1652500626793.jpg) Major EV startups that went public after taking SPAC deals like Canoo, Lordstown Motors and Fisker have all revealed details about their financial troubles (Bloomberg) ![Author Photo](https://images.hindustantimes.com/tech/static/revamp/images/png/HTTech-new-circle-logo.png) ### By BLOOMBERG Several electric-vehicle startups that went public by merging with special purpose acquisition companies, or SPACs, the last two years made some nervy disclosures this week. Canoo, the buzzy electric-van outfit that drew interest from Apple’s car team back in 2020, issued a going concern warning that there’s substantial doubt as to whether it has enough cash to keep operating for another year. Lordstown Motors completed the sale of its electric pickup plant to Foxconn only after multiple delays and an admission it didn’t have enough money to refund the iPhone assembler if the deal fell through. Also read click here. And Fisker, which is six months away from delivering its debut electric sport utility vehicle, reiterated belief that it has sufficient cash for at least the next year with the caveat that it may need more due to changed business conditions. All of this has understandably given investors pause in an equity market where the tide is clearly going out. The tech-heavy S&P 500 Index is down 18% this year, and some post-SPAC EV stocks have fallen much further. The rout doesn’t bode well for the near-term ability for companies with little or no revenue to raise more money and get their vehicles to market. An environment of rising interest rates and less-friendly capital markets is particularly problematic for EV companies because of how much money they were always going to need to make it in the long run. Consider this comparison, courtesy of Jefferies: Tesla has raised $23.5 billion — and generated almost that much in gross earnings — to get where it is today. Excluding outlier Lucid, the 11 EV companies that went public via SPAC since 2020 combined have raised roughly $7.5 billion. Tesla is, of course, not the only well-resourced competition that awaits these companies. Rivian raised almost $12 billion from its initial public offering in November and has brought in almost $25 billion in total capital. General Motors and Ford are pumping out high-margin pickups and SUVs to fund the flotilla of EVs they’ll have hitting the road in the coming years. Lucid has raised $8 billion and has a flush backer in Saudi Arabia’s sovereign wealth fund. That’s a good thing, because Bloomberg Intelligence estimates the carmaker will burn through almost $8 billion this year and next, and may need to raise at least another $2.5 billion for additional wiggle room. BI’s forecasts suggest Fisker, Lordstown, Canoo and Nikola risk exhausting their respective cash balances by the end of next year, and that they too could use more capital. Several of these startups are trying out an asset-light business model to minimize investment. Fisker and Lordstown are both relying on Foxconn to do assembly. Mega-supplier Magna’s contract-manufacturing subsidiary also will build vehicles for Fisker. Nikola’s first trucks are being built with partner Iveco, the commercial-vehicle unit of CNH Industrial. These approaches will reduce costs, but won’t erase them. Fisker, Lordstown, Canoo and Nikola currently have a total of $1.4 billion cash on hand. Raising more will be difficult because they don’t own much to secure asset-backed loans. Convertible debt is currently pricey. Equity is the way out, but again, their shares have been getting hammered. If they can get deals done to sell more stock, it will be dilutive to existing shareholders. And for each of these companies, we’re talking about money to produce and support the first vehicles they’re trying to get out of factory doors. To make it big over the long term, they need Tesla money. This isn’t the kind of market from which they’re going to get it. Like getting this newsletter? Subscribe to Bloomberg.com for unlimited access to trusted, data-driven journalism and subscriber-only insights. Catch all the Latest Tech News, Mobile News, Laptop News, Gaming news, Wearables News , How To News, also keep up with us on Whatsapp channel,Twitter, Facebook, Google News, and Instagram. For our latest videos, subscribe to our YouTube channel. 14 May, 09:44 IST electric vehicles ![HT Tech Awards](https://tech.hindustantimes.com/ht-tech-power-list-awards-2026/httech-awards-banner-new.webp) ### Related Stories 07 Oct 2026 06 Oct 2026 71,652,498,865,952 NEXT ARTICLE BEGINS ![View all](https://images.hindustantimes.com/tech/static/revamp/images/png/view-all-icon.png) ## Tips & Tricks ![Ghibli-style art](https://images.hindustantimes.com/tech/img/2025/03/28/414x233/ChatGPT_Ghibli_style_images_1743161814450_1743161814596.jpg) ### How to turn your photos into Ghibli-style art with ChatGPT for free: Step-by-step guide ![How to create an invitation using iPhone’s new Apple Invites app- Step-by-step guide](https://images.hindustantimes.com/tech/img/2025/02/14/414x233/invites_1738728829564_1739543695649.png) ### How to create an invitation using iPhone’s new Apple Invites app- Step-by-step guide ![Apple TV app arrives on Android phones and tablets: What you get and how to install it](https://images.hindustantimes.com/tech/img/2025/02/13/414x233/unnamed_1739426557335_1739426567634.jpg) ### Apple TV app arrives on Android phones and tablets: What you get and how to install it ![Vodafone Idea OTT plans](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Vodafone Idea users can now stream 17 OTT apps with one subscription: Here's how ![Android data transfer methods](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### How to transfer data from one Android to another using Google backup, USB-C cable, and more ## Editor’s Pick ![iPhone 16e launched with A18 chip, Apple AI—bringing flagship power on a budget: Check specs, price](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### iPhone 16e launched in India: All details about the new budget mobile from Apple ![DeepSeek was founded in China with only a fraction of the budget of the top AI companies in the US.](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### DeepSeek AI: How it works, who’s behind it, how it’s different from ChatGPT, and its big US market impact explained ![iPhone 17 Air likely to get this feature that iPhone 17 Pro models may miss out on](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### iPhone 17 Air likely to get this feature that iPhone 17 Pro models may miss out on ![Google Whisk AI explained: How remixing works, availability, and how it differs from Gemini](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Google Whisk AI explained: How remixing works, availability, and how it differs from Gemini ![iOS 18.4 beta arriving soon: Know why it is the biggest iPhone update](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### iOS 18.4 beta arriving soon: Know why it is the biggest iPhone update ## Trending Stories ![Airtel 5G SIM card will now be delivered in 10 minutes with Blinkit- How to order](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Airtel 5G SIM card will now be delivered in 10 minutes with Blinkit- How to order ![Infinix Note 50s 5G+](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Infinix Note 50s 5G+ set to launch in India with 64MP camera and MediaTek Dimensity 7300 SoC ![Xiaomi X Pro QLED Series sale starts in India: Check price, availability, and more](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Xiaomi X Pro QLED Series sale starts in India: Check price, availability, and more ![Apple Intelligence AI training](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Apple plans to train AI using your on-device data without accessing personal content or emails: Report ![CMF Buds 2](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### CMF Buds 2 key features and price revealed ahead of April 28 launch: Details inside keep up with tech ![Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/tech-facebook.png) ![Twitter](https://images.hindustantimes.com/tech/static/revamp/images/png/tech-twitter.png) ![WhatsApp](https://images.hindustantimes.com/tech/static/revamp/images/png/tech-whatsApp.png) ![Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/tech-facebook.png) ## Gaming ![Check out these five gaming monitors under ₹20,000,](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Top 5 gaming monitors under ₹20000 you should consider ![gaming consoles](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Grab gaming consoles at discounted rates during Amazon Great Indian Festival: Up to 72% off ![Pokémon GO Wild Area 2025](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Pokémon GO Wild Area 2025 to bring Grimmsnarl family, Shiny Hatenna, and global challenges ![Shade Silver](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Shade Silver free on Steam for a limited time: Here’s how to get it ![Call of duty](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Call of Duty: Black Ops 7 skips Switch 2 at launch, release date and price leak ![View all](https://images.hindustantimes.com/tech/static/revamp/images/png/view-all-icon.png) ## Trending News ### Airtel 5G SIM card will now be delivered in 10 minutes with Blinkit- How to order ![Airtel 5G SIM card will now be delivered in 10 minutes with Blinkit- How to order](https://images.livemint.com/static/static/1x1_img.gif) ### Infinix Note 50s 5G+ set to launch in India with 64MP camera and MediaTek Dimensity 7300 SoC ![Infinix Note 50s 5G+](https://images.livemint.com/static/static/1x1_img.gif) ### Xiaomi X Pro QLED Series sale starts in India: Check price, availability, and more ![Xiaomi X Pro QLED Series sale starts in India: Check price, availability, and more](https://images.livemint.com/static/static/1x1_img.gif) ### Apple plans to train AI using your on-device data without accessing personal content or emails: Report ![Apple Intelligence AI training](https://images.livemint.com/static/static/1x1_img.gif) ### CMF Buds 2 key features and price revealed ahead of April 28 launch: Details inside ![CMF Buds 2](https://images.livemint.com/static/static/1x1_img.gif) ## Trending Gadgets Mobiles Laptops Tablets ![HT Tech](https://images.hindustantimes.com/tech/static/revamp/images/png/HT_tech-new.gif) - https://tech.hindustantimes.com/tech/news/canoo-lordstown-motors-to-fisker-electric-vehicle-startups-run-low-on-cash-after-spac-deals-71652498865952.html