Both NASA and the United States Postal Service have quietly abandoned their electric vehicle fleets from bankrupt startup Canoo, despite former CEO Tony Aquila's courtroom promise that supporting these government programs was his "principal motivation" for buying the company's assets. The revelation exposes the gap between bankruptcy court pledges and real-world delivery capabilities.
NASA and the United States Postal Service have both pulled the plug on their Canoo electric vehicle programs, marking another chapter in what's becoming one of the EV industry's most spectacular failures. The abandonment comes despite former CEO Tony Aquila's explicit promise to a bankruptcy court that supporting these government contracts was his main reason for acquiring the startup's assets.
The space agency purchased three Canoo EVs in 2023 with ambitious plans to use them for shuttling astronauts to launch pads during Artemis moon missions. But NASA told TechCrunch that Canoo "was no longer able to meet our mission requirements." The agency has since pivoted to leasing Boeing's Airstream-built "Astrovan" as of October.
Meanwhile, USPS quietly completed its evaluation of six Canoo vehicles purchased in 2024, concluding they "are no longer in use" with "no further investments anticipated." The postal service declined to share details about what went wrong during the evaluation process.
The government exodus reveals the hollow nature of Aquila's bankruptcy court commitment. When Canoo filed for Chapter 11 in January, Aquila stepped forward with a $4 million bid for the company's assets, telling the bankruptcy trustee his "principal motivation" was honoring "commitment to provide service and support for certain government programs."
But both NASA and USPS told reporters they never heard from Aquila about vehicle support after the April asset purchase. Aquila didn't respond to requests for comment, and his bankruptcy lawyer also stayed silent.
The startup's collapse represents more than just another EV failure - it's a case study in how government procurement can go sideways. Canoo had positioned itself as a government-focused electric vehicle company, landing contracts with NASA, USPS, and even providing demonstration vehicles to the Department of Defense. The DOD hasn't responded to questions about whether it's still using its Canoo van.
Aquila wasn't the only party interested in Canoo's assets during bankruptcy proceedings. Up to eight companies signed NDAs to evaluate the startup's intellectual property and equipment. Harbinger, an electric trucking company founded by former Canoo employees in 2021, came close to bidding but accused the bankruptcy trustee of "unfairly favoring" Aquila.
A mysterious UK financier named Charles Garson claimed he was willing to pay $20 million - five times Aquila's offer - but the bankruptcy judge ruled he didn't formalize his bid in time. The trustee and Canoo's lawyers defended Aquila's selection, arguing other bidders raised national security concerns due to "foreign ownership" that could trigger review by the Committee on Foreign Investment in the United States.
Those security concerns proved prophetic, given Canoo's government contracts with NASA, USPS, and DOD. But the irony is thick - the CEO who won approval partly on national security grounds couldn't actually deliver the support he promised.
Canoo's government vehicle programs represented the startup's best shot at establishing a sustainable business model in the crowded EV market. Unlike consumer-focused rivals, government contracts offered predictable revenue streams and validation that could attract private customers. The company's utilitarian van design seemed perfect for government fleet applications.
But the reality of supporting specialized government vehicles after bankruptcy proved more complex than courtroom promises. Government agencies need reliable supply chains, parts availability, and technical support - infrastructure that evaporates when startups collapse. NASA's switch to Boeing's proven Astrovan underscores how mission-critical applications demand established suppliers.
The Department of Defense's silence on its Canoo vehicle status adds another layer of uncertainty. If DOD has also abandoned its demonstration van, it would complete a clean sweep of government agencies walking away from the startup's vehicles.
For the broader EV industry, Canoo's government contract failures highlight the challenges facing startup manufacturers trying to crack institutional markets. Government buyers increasingly favor established players with track records of long-term support over innovative startups with uncertain futures.
The collapse of Canoo's government vehicle programs exposes a fundamental disconnect between bankruptcy court promises and operational reality. While Aquila's $4 million asset purchase looked like a lifeline for stranded government customers, the failure to deliver promised support has left NASA shuttling astronauts in Boeing vehicles and USPS evaluating other electric options. For government agencies and the EV industry alike, Canoo's story serves as a cautionary tale about the risks of depending on financially unstable suppliers for mission-critical transportation needs.
