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NASA, USPS Halt Canoo EV Use Despite CEO Backing

â–Ľ Summary

– NASA and the USPS have stopped using electric vans from the bankrupt startup Canoo, despite the former CEO’s pledge to support them.
– NASA purchased three vans for astronaut transport but now leases a different vehicle, stating Canoo could no longer meet its requirements.
– The USPS completed its evaluation of six Canoo vehicles and stated no further investments are anticipated, declining to share results.
– Canoo filed for bankruptcy in early 2025, and its former CEO later purchased the company’s assets, citing a desire to support government contracts.
– Multiple parties showed interest in buying Canoo’s assets, with the bankruptcy judge approving the sale to the former CEO after disputes over the process.

Two major U.S. government agencies have discontinued their use of electric vans from the startup Canoo, which filed for bankruptcy earlier this year. NASA and the United States Postal Service (USPS) have both ceased operations with the vehicles, despite a pledge from the company’s former CEO to continue supporting government contracts. This development highlights the challenges faced by new entrants in the competitive electric vehicle market, particularly when securing and maintaining large institutional clients.

NASA initially acquired three of the EVs in 2023. The plan was to utilize these vans for transporting astronauts to launch vehicles as part of the upcoming Artemis lunar missions. The space agency has since stated that Canoo “was no longer able to meet our mission requirements.” To fill this role, NASA is now leasing a different astronaut transport vehicle, an Airstream-built “Astrovan,” from aerospace giant Boeing.

For its part, the Postal Service confirmed it purchased six Canoo vehicles in 2024 strictly for an evaluation program. That assessment has now concluded. A USPS spokesperson noted the vehicles “are no longer in use” and that “no further investments are anticipated.” The agency declined to provide any specifics or final results from its testing. Separately, the Department of Defense also received at least one demonstration vehicle from Canoo prior to its bankruptcy, but it has not commented on its current status.

Canoo’s financial troubles culminated in a Chapter 11 bankruptcy filing in January 2025. Following this, former CEO Tony Aquila submitted a $4 million bid to acquire the company’s remaining assets in March. During bankruptcy proceedings, Aquila indicated a “principal motivation” for his offer was a “desire to honor [Canoo’s] commitment to provide service and support for certain government programs.” Neither NASA nor the USPS would confirm if Aquila ever contacted them regarding ongoing support after his purchase. Aquila and his legal representation did not respond to requests for comment on the matter.

The bankruptcy court approved the sale to Aquila in April, but his was not the only offer considered. Court documents revealed that up to eight different parties signed non-disclosure agreements to review Canoo’s intellectual property and physical assets. Among the interested parties were Harbinger, an electric truck maker founded by ex-Canoo employees, and a U.K.-based financier named Charles Garson.

Harbinger raised objections during the process, alleging that assets were concealed and that the bankruptcy trustee showed unfair preference toward Aquila’s bid. Garson claimed he was prepared to offer up to $20 million but failed to formalize his proposal by the court’s deadline. Lawyers for the bankruptcy estate and Canoo argued that Aquila’s bid was the most solid and credible. They also pointed to potential complications with another, unspecified bidder, suggesting its foreign ownership could trigger a review by the Committee on Foreign Investment in the United States, especially given Canoo’s contracts with NASA, USPS, and the Department of Defense. Both Harbinger and Charles Garson declined to comment on the finalized sale.

(Source: TechCrunch)

Topics

canoo bankruptcy 95% government contracts 90% asset sale 85% bankruptcy proceedings 85% electric vehicles 80% nasa artemis 75% tony aquila 75% financial struggles 70% postal service evaluation 70% competing bids 70%