EV startup Canoo Inc (NASDAQ:GOEV) is moving its headquarters from California to Texas, replicating the move from EV giant Tesla Inc. in 2021.
What Happened: Canoo said earlier this month that it is looking to relocate its headquarters in California to Justin in Texas. The company has already updated its location on LinkedIn to Texas.
In an SEC filing earlier this month, the company said that it has implemented an employee reorganization plan as per which it intends to "permanently reduce" its workforce at its headquarters in Torrance, California.
The company is now offering to relocate a majority of its employees at Torrance to its facilities in either Oklahoma or Texas. The company intends to relocate about 137 employees out of the 194 employees at Torrance. The remaining are expected to be terminated on October 15.
Canoo did not immediately respond to Benzinga's request for comment on the reasons behind the relocation.
Why It Matters: Canoo entered into a lease for an about 8,000-square-foot facility in Texas in January 2023 with an entity belonging to company CEO Tony Aquila. While the initial lease term is till March 31, 2026, the company also has the option to extend the term of the lease for an additional five years.
The move from the EV startup is reminiscent of Tesla's headquarters shift to California in 2021. Tesla also shifted its incorporation from Delaware to Texas in June this year.
California has been Canoo's headquarters since 2017.
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Photo courtesy: Canoo
