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In 2022, Canoo, an electric vehicle company, showcased a prototype of its EV at the CES technology trade show in Las Vegas. Despite the display, the company faced scrutiny for spending $1.7 million on CEO Tony Aquila’s private jet bills, which was twice the revenue it generated in 2023. Investors are concerned about such spending, especially when a company is struggling, as in Canoo’s case. The EV maker reported a loss of $302 million last year, reflecting the challenges it faces in an industry with slowing demand.

Despite its efforts to produce passenger vehicles, delivery vans for Walmart, and crew transport vehicles for NASA, Canoo has been struggling to generate profits and faces cash flow issues while trying to scale up production. The lack of sufficient cash flow has forced the company to consider raising additional funds to sustain its operations. This challenge, coupled with several executive departures in 2022, has contributed to a 26% stock decline following the company’s earnings report.

Canoo’s CEO Tony Aquila received $1.7 million in “aircraft reimbursements” for his private jet expenses in 2022, while the company only had $886,000 in revenue that year. Aquila owns approximately 14% of Canoo and also received $1.3 million for air travel expenses in 2022.

The excessive spending practices of business leaders like Tony Aquila raise concerns among shareholders and investors about a company’s financial health and management decisions. Similar cases such as WeWork purchasing a luxury jet and General Electric’s former CEO Jack Immelt’s extravagant travel accommodations have faced backlash for their excessive spending practices.

In conclusion, despite showcasing a prototype of its EV at CES 2023 Canoo still faces scrutiny from investors regarding its spending habits on private jets for its CEO Tony Aquila which was twice the revenue generated by the company that year. The lack of sufficient cash flow has forced Canoo to consider raising additional funds to sustain its operations while facing challenges in an industry with slowing demand and several executive departures leading to a significant stock decline following its earnings report.

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