Despite ex-CEO’s promises to support government fleets, Canoo’s collapse leaves agencies seeking alternatives for electric transport.
Canoo’s EV Dreams Crumble
NASA and the U.S. Postal Service have stopped using Canoo electric vans, effectively ending the EV startup’s short-lived relationship with key government agencies. Despite former CEO Tony Aquila’s public commitment to continue servicing these vehicles after Canoo’s bankruptcy, both organizations have confirmed that Canoo vans are no longer in use.
- NASA, which acquired three Canoo EVs in 2023 for its Artemis moon missions, told TechCrunch the company could no longer meet mission requirements.
- The space agency has since switched to leasing the Airstream-built “Astrovan” commissioned by Boeing for crewed missions.
USPS Concludes Evaluation, Shuts Down Use
The United States Postal Service had purchased six Canoo vehicles in 2024 for testing purposes. That program is now concluded:
- USPS said the evaluation phase is complete and that no further investments in Canoo products are planned.
- The agency declined to disclose details or results of the testing.
This marks a quiet exit for a company that once promised to revolutionize last-mile and mission-critical electric mobility.
Broken Promises Amid Bankruptcy
Following Canoo’s bankruptcy filing in January 2025, Aquila made a $4 million bid to acquire the company’s assets. He told the court his main motivation was to “honor Canoo’s commitment” to government partners like NASA and USPS by continuing vehicle support.
However:
- Neither NASA nor USPS confirmed if Aquila ever approached them post-sale.
- Aquila and his legal team declined to comment on any attempts to resume service relationships.
This raises questions about whether the pledged support was ever actionable—or just a strategic part of securing the company’s remaining assets.
A Contested Sale, and Lost Alternatives
Canoo’s asset sale was far from uncontested. According to the bankruptcy trustee:
- Eight parties signed NDAs to evaluate Canoo’s IP and equipment.
- Harbinger, an EV trucking company founded by ex-Canoo employees, accused Canoo of hiding assets and favoring Aquila unfairly.
- Charles Garson, a UK-based financier, reportedly offered up to $20 million but missed the bid deadline.
The court approved Aquila’s offer in April, noting it was the firmest bid available at the time. There were also concerns around foreign ownership, particularly regarding government contracts with national security implications.
- The trustee and Canoo lawyers argued that Aquila’s U.S.-based bid was safer under CFIUS (Committee on Foreign Investment in the United States) scrutiny.
Neither Harbinger nor Garson has commented since the sale.
EV Support Promised, But Not Delivered
The failure to maintain service relationships—despite Aquila’s stated intent—highlights a key weakness in Canoo’s post-bankruptcy strategy. Without meaningful follow-up, its former customers were left unsupported, effectively nullifying early wins in securing high-profile clients.
- NASA and USPS quietly moved on, avoiding further risks associated with an unstable vendor.
- The Department of Defense, which received a demonstration unit, has not commented on whether it continues to use the vehicle.
What began as a promising EV venture with government traction has ended with silent withdrawals and missed opportunities. Canoo’s demise reflects a broader challenge in the electric vehicle industry: gaining institutional trust requires not only innovation but also long-term stability—something few startups can guarantee.
