NASA and USPS Discontinue Use of Canoo Electric Vehicles Amid Startup’s Bankruptcy
In a significant shift within the electric vehicle (EV) sector, both NASA and the United States Postal Service (USPS) have ceased utilizing electric vans produced by the now-defunct startup, Canoo. This decision comes despite assurances from Canoo’s former CEO, Tony Aquila, to support these vehicles post-bankruptcy.
NASA’s Transition:
In 2023, NASA acquired three Canoo EVs intended to transport astronauts to the launchpad for its Artemis lunar missions. However, the agency reported that Canoo could no longer fulfill mission requirements. Consequently, as of October 2025, NASA has been leasing the Airstream-built Astrovan from Boeing, originally commissioned for Boeing’s crewed space missions.
USPS’s Evaluation and Decision:
Similarly, the USPS had purchased six Canoo vehicles in 2024 for evaluation purposes. After completing the assessment, the postal service stated that these vehicles are no longer in use and that no further investments are planned. Details of the evaluation results were not disclosed.
Canoo’s Financial Struggles and Bankruptcy:
Canoo filed for Chapter 7 bankruptcy in January 2025, ceasing operations and initiating asset liquidation due to prolonged financial difficulties and an inability to establish a market for its electric vans. Despite securing contracts with prominent organizations such as NASA and the Department of Defense, and pursuing foreign investment, the company was unable to obtain financial support from the U.S. Department of Energy’s Loan Program. Following unsuccessful efforts to find capital, the Board of Directors decided to file for insolvency and cease operations immediately. Chairman and CEO Tony Aquila expressed gratitude to employees and partners for their support during the company’s journey.
Post-Bankruptcy Developments:
Following the bankruptcy, Tony Aquila made a $4 million bid for Canoo’s assets in March 2025, expressing a desire to honor Canoo’s commitments to government programs. However, both NASA and USPS declined to comment on whether Aquila approached them regarding support for the vehicles. The bankruptcy judge approved the sale to Aquila in April 2025, amidst interest from other entities, including Harbinger, a California-based electric trucking company founded by former Canoo employees, and Charles Garson, a financier from the U.K.
Implications for Government Fleet Electrification:
The discontinuation of Canoo EVs by NASA and USPS underscores the challenges faced by emerging EV manufacturers in fulfilling large-scale government contracts. It also highlights the importance of financial stability and operational reliability in the adoption of electric vehicles within government fleets.
