All right, welcome back, everyone. We have an update from Canoo Technologies, Inc. It trades on the Nasdaq under the symbol GOEV, and has developed breakthrough electric vehicles that are reinventing the automotive landscape with their pioneering technologies, unique design, and business model that spans multiple owners across the full life cycle of the vehicle. Happy to welcome back the CFO, Greg Ethridge, which you seem to be at the headquarters, Greg. Tell us where you are today.
Thanks, thanks, Anna, and Emergent Growth for having us again. Yeah, I'm actually out. I was meeting with some investors and research analysts this morning in Oklahoma City, so I jumped out onto the floor, and I'm taking this from the back of one of our LVs here. So it's you can hear a little bit of background noise. Hopefully, it's not too bad. But yeah, no, we're excited to you know, to obviously continue to have people through the facility, show them their progress. We it's not been that long, I guess, since we spoke, so I'm gonna give a short update. We had earnings earlier this week. We completed the reverse stock split process, which I think was kind of you know, on deck right as we last spoke successfully, actually.
And just as a one note is of the kind of roughly 100 companies that went through that process, we outperformed the average by a long shot. So we're really happy with that and just appreciate the support of our investors. In terms of updates, I think we gave a pretty detailed update earlier this week, after at the end of the close on Monday. You know, we've spent some time just revisiting where the market is broadly, and I think that there's you know, a ton of excitement continued, we're continuing to see on our customer side. Our customers on the commercial and fleet side continue to be very steadfast in their support for their sustainability initiatives, but more importantly, the long-term kind of cost benefits and TCPO benefits of electrification.
So that continues to go forth smoothly. But we have been also cautiously watching what's happened to others in the space. And we've been. That was one of the, you know, primary objectives of Monday, is really making sure our investors in the market understood how we were thinking about scaling. Our view is you can't scale too fast 'cause you're just bound to fail, in the sense of you're ramping up. You don't have a chance to really re-engage with your suppliers on the right basis, improve margins. And, you know, those early days, like, everyone going through the ramp, almost all of those units come off at a negative margin, and we're gonna be very cautious on how quickly we do that, and we do it the right way.
So I think that there was a, you know, there was, I think there was a broad understanding from our research, you know, analysts and an appreciation that we were very transparent, in sharing kind of our status with, you know, the business and with our plans for ramp. You know, we did announce the next day a really exciting agreement with a new partner in the, in the KSA region, in the Middle East, Jazeera Paints. They're part of a larger conglomerate. We've been, you know, working on this relationship for over a year.
Tony's, you know, been very, very involved in that, and given his prior global businesses and given the kingdom's kind of 2030 Vision, it was really an important milestone for us to be able to have a flag now in the Kingdom of Saudi Arabia. And I think that there are broader aspirations of what we can do with some of our partners over there. So that's a really exciting announcement earlier this week. I know that there's been a lot of, you know, some negative press, which I don't really even wanna get into. You know, it's unfortunately, people pulling headlines from two years ago, which are really not even relevant. We've had access to capital since, you know, we announced.
We were one of the first EVs actually, that put a Going Concern language in our financial statements, and it's a very technical, technical thing relative to kind of GAAP-related financial statements. Unfortunately, someone scraped that off and threw it into the market on Monday. That being said, we've raised $650 million capital in the last nine quarters, so access to capital has not been an issue for us at all. We continue to have a lot of liquidity in our stock, you know, having access to both institutional investors and strategic partners. So, you know, this is not something that we're concerned about, but I know it did have some kind of gyrations in the stock earlier this week.
And I think, look, at the end of the day, we're in it for the-- we're in it to win it. We're still here. I think there were a lot of naysayers, two years ago that didn't think that Canoo would still be here, and we've outlasted a lot of our competitors, and we're the only, you know, only game from a branded Class 1, Class 2 product in commercial fleet and government, you know, government applications. So from our perspective, we really have kind of the entire market to ourselves. There are some that are coming in, that have planned to announce, you know, vehicles or have announced vehicles that they plan to be in market in 2026 and 2027 in production. So we still have plenty of head start, and we have a very strong, supportive, you know, supplier, customer, and investor base.
So, maybe with that short update, I can, Oh, one other thing I wanted to mention. On the USPS vehicles, we've made a ton of progress. Actually, Tony was in D.C., met with the Postmaster General, and, you know, we're very near to delivering those. We actually are gonna have a couple of those on display with us in the United Kingdom in the coming weeks. Because of the right-hand drive technology that we're now selling to the Post Office, we thought that was a great opportunity to also introduce the right-hand drive solution to the UK market, which obviously, when you think about, you know, right-hand drive markets globally, that's a pretty large market.
So again, continue to think both on the sales side and kind of customer pipeline, but also on the production and the ramp side and the scaled manufacturing ramp that we've been communicating to the market for the last, you know, year and a half. So with that, Anna, maybe I'll go ahead and hand it back to you.
Yeah. Since you're in Oklahoma, let's talk about it. Canoo's Oklahoma City facility, which you're at right now, recently designated a foreign trade zone. So what is an FTZ, and how does that status help Canoo's path to profitability?
Yeah, so an FTZ is a foreign trade zone, is a really important for businesses that are selling, can both take parts in from overseas, which is not a huge percentage of our supplier base. About 30% of our BOM comes from overseas, but we can take advantage of that to the extent we're paying tariffs and duties, and obviously the tariffs and duties range pretty widely depending between China and other parts of the world. We actually can defer that entire cost for anything that's sold domestically, but to the extent we export it, so for example, Jazeera Paints or other, you know, future international customers, we actually don't have to pay those costs at all.
So it actually is a pretty material improvement in margin, and one of our kind of key tenets as we thought about how we want to approach the global market. We control all of our IP, right? And the last thing we wanna do is go manufacture our most precious IP in other geographies where you may not have as much control, IP leakage, et cetera. Obviously, a big no-no in doing that in China, but even other markets, we've been cautious. So our thought process was drive as much volume out of Oklahoma City as possible, and then even ship the rolling chassis or, basically, our rolling skateboards, drivable chassis, to other markets. That's 70% of our critical components, largely almost all of our IP, right, in our components.
And that way, we are able to ship those and do final assembly in other geographies where we don't have to necessarily worry about our IP being kind of in many, in some cases, stolen, right? So that's just a broader, idea and a kind of a philosophy that Tony has. But this, FTZ specifically, using that strategy, can be very powerful, and there's only about 280 FTZs in the U.S., and obviously a lot of logistics companies have them. A lot of, you know, a lot of the larger companies have them. But it, for us, as a small company thinking ahead, I think it just shows you again that we are looking at the long term and ways to generate value for our shareholders, and that's just a, a really important attribute.
We're kind of squeezing every piece of the overall business model, every part of the cost model, to figure out how do we, you know, make a, you know, build a better business? That's, that's really the long-term goal here.
Fred Margolies asks, "When can we expect to see some video from the Oklahoma plant in operation?" Do you have any content and media of the plant?
Yeah, we do have some, but as we noted earlier, you know, one of the things that we've been managing, right, is our kind of supply chain harmonization. So, we have various components and lines running in Oklahoma-
Mm-hmm.
But, you know, still don't have the entire assembly line put together, and that's just something that's going to happen over the next, you know, couple quarters as we continue to ramp up volume and improve deliveries. It's been a slower start than we expected. I think that came out on the call Monday. Part of that is, it is complicated, right? We've had a lot of, you know, unfortunate failures in the, in the industry. That's had implications on our supply base. It's created, it created some anxiety, and we're just, y ou know, we're managing through that, and I think we've been managing through it very successfully. But it has slowed things down a little, little more.
I think also that inward reflection that you heard on Monday is we've wanted to make sure we're very cautious to not fall into some of the pitfalls that others have fallen into recently.
Absolutely. Recently, Canoo's announced several new sales and pilot test agreements. Which ones are you most excited about?
I think that the, as I mentioned, I think these international opportunities have really been incubated for a long time, and there's more on the horizon. You know, obviously, the U.S. Postal Service, and I know I touched on this last, on their last update, but as a, as obviously an American brand, you know, that's been around forever, and really a brand that's kind of, you know, has, is a little bit dated, right? I mean, if you think about kind of the vehicles are from the eighties, they've, you know, a lot of them are 30-plus years old, the maintenance is really high. You know, this is an opportunity for them to take, you know, a, a well-established, you know, American brand and bring it into this century with electrification.
We're really excited to be part of that because our vehicles do have a really amazing look, you know, feel, the ergonomics, and all the other things we're really trying to sell to our customers and to, you know, their employees to make their lives better. I mean, for example, think about it, U.S., most U.S. Postal Service, you know, delivery vehicles don't have air conditioning, right?
Mm.
I mean, that's just a little thing, I think, to make their life better is something that we're... you know, and more productive, right? It's something that we're really focused on. So that, and I'd say with the, you know, these international opportunities are really exciting. And again, there's a ton of, you know, both capital and strategic interest in EVs in the Middle East. I don't think that's going away. I mean, we're, as Tony likes to say, we're at a tipping point. BEV, despite kind of the consumer sentiment, right, some of the things, you saw the Tesla numbers. I mean, yes, there's a, there's a clear pullback going on the consumer side. It's really not impacting, one, electrification of BEV, 'cause it's here to stay, and right, everybody knows that, even though the market has been gyrating quite a bit.
But two, like, the large sophisticated buyers get it, right? They're not changing their views just because of some market volatility, and Elon Musk saw this, you know, 20 years ago, right? It, it's the train has left the station, and I think everybody just needs to get on it, and we wanna be part of that solution for our commercial customers.
Do you have any updates on the partnerships you've mentioned with some Fortune 100 and 500 companies?
We have, we always have updates, but I can only give you the specific updates when it becomes public.
Mm-hmm.
But we have made, you know, that particular partner that has taken longer than we had expected to get out into the public domain. We were with them today, and they continue to be very excited. I was not with them 'cause I was here, but they were actually in our Dallas office. And it was, the feedback that I heard was very positive, and we're hopeful to be able to get something publicly announced with them here soon.
These big companies like the Walmarts and, you know, other Fortune 100 companies out there, it's a very long process, and you have to get through many stage gates and kind of be, you know, meet, meet a lot of testing criteria to ultimately for them to let you publicly work with them and announce their name. So that's just something that's taking a little longer, but they're very much still in the mix. And I got the question actually earlier today from one of the research analysts: "Hey, what's the backlog look like for those?" There's, there are two or three of those types of customers in the mix, and we continue to be very excited about the progress we're making, both, and that's both the international and domestically, so.
Wonderful. Any closing remarks for our viewers today, Greg?
No, look, we continue to appreciate all the support from our investors. I know it's been a very volatile time, but stick with us. We are, you know, like I said, we're in it to be the, the commercial winner here, and we do believe in this Class one, Class two space. There's really no competition, and we think that once we got our base established in Class one, Class two, you know, there's other opportunities in fleet, and there's clearly a lot of opportunities which we think in military and other things that we expect to make a ton of progress on in 2024. But we are continuing to, you know, continue to work our way through the manufacturing supply chain and production ramp here.
And we'll continue to keep our investors up to date. So thank you, and Emerging Growth Anna, for hosting us and giving us a chance for a quick update here.
Absolutely. Our pleasure. Thank you so much for this update. We'll see you again soon, Greg.
Thanks. All right, take care. Bye-bye.
All right, everyone, stay with us. We'll be right back with Dermata Therapeutics.