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In 2021, Apple was in talks with an electric car startup Canoo
13.01.2021 [09:04],
Konstantin Khodakovsky

Apple held meetings with California-based electric car startup Canoo in the first half of last year as part of a secret effort to promote its own electric car, The Verge reported, citing three whistleblowers. The two companies reportedly discussed options ranging from investments to acquisitions.

To a large extent, Apple has attracted Canoo’s scalable EV platform or “skateboard”, which differs from its counterparts in that it includes more car electronics, which allows more flexibility in the design of the cockpit. It also uses a fly-by-wire steering system, which increases design flexibility and is not yet widely adopted in the industry.

Two of the informants said Canoo was more interested in the investment from Apple and ultimately the negotiations ended in nothing. Since then Canoo went public at the end of 2021. Apple has made at least one car acquisition in recent years by taking over in 2021.

“Canoo does not publicly comment on its strategic negotiations, relationships or partnerships if it is not deemed appropriate,” Canoo Executive Chairman Tony Aquila responded to questions from The Verge. Apple declined to comment at all.

The news of Apple’s interest in Canoo comes after Reuters reported that the tech company is in talks with Hyundai to create an autonomous electric vehicle by 2024. Apple’s electric car project, codenamed Project Titan, has changed several times over the years. But now, the company is reportedly focusing on building an autonomous electric vehicle, and is meeting with both small automakers like Canoo and large Hyundai to outsource engineering and manufacturing.

By the way, Hyundai and Canoo announced plans to jointly develop electric vehicles in February 2021, although this project does not seem to have anything to do with the startup’s negotiations with Apple. In recent filings with the Securities and Exchange Commission, Canoo calls its partnership with Hyundai an “engineering services agreement” whereby the companies will jointly develop a platform to power small electric vehicles. But Canoo does not say if a real partnership with Hyundai has begun.

Canoo was founded in late 20021 by a small group of professionals and funded by a powerful Chinese investor. Canoo plans to produce commercial electric vehicles like delivery vans or food delivery trucks, and is also going to provide vans by subscription. All Canoo electric vehicles are built on a common scalable skateboard platform.

The talks with Apple come at a defining moment for Canoo, which lost $ 182.3 million in 2021 working on its first prototype and entered 2021 with just $ 29 million in bank capital. As a result, Canoo managed to raise $ 600 million, but the company continues to negotiate with large companies like Apple interested in using Canoo’s technology and engineering expertise to create their commercial products.