Canoo finalizes incentive package with Oklahoma, Cherokee Nation

Reuters
Mon, August 14, 2023 

A view shows a Canoo LTV (Light Tactical Vehicle) electric vehicle, produced for the U.S. Army, at a manufacturing site

(Reuters) - Electric-vehicle startup Canoo said on Monday it finalized incentive agreements with the state of Oklahoma and the North American tribe Cherokee Nation, for an estimated value of $113 million over 10 years.

As part of the agreements, Canoo said it has already started hiring for its vehicle assembly facility in Oklahoma City and the battery manufacturing factory in Pryor.

The company said the agreement with the Department of Commerce will enable Canoo to receive performance-based payouts and make it eligible for some state tax credit and exemption programs.

Canoo, which will invest more than $320 million at both its facilities in the state, had entered into a long-term lease agreement for the vehicle manufacturing facility in Oklahoma City earlier this year.

Analysts expect the startup to report a loss of about $75 million when it reports second-quarter results after markets close on Monday, according to Refinitiv data.

(Reporting by Tanya Jain and Akash Sriram in Bengaluru; Editing by Krishna Chandra Eluri)