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Hennessy Rumored to Take Canoo Public - A Possible Leader in the EV Market.

Hennessy Rumored to Take Canoo Public - A Possible Leader in the EV Market.
EV Startup Canoo Is Said to Be In Talks for Hennessy SPAC Deal
"The special purpose acquisition company, or SPAC, is in talks with investors to raise about $300 million in new equity for the deal, which would take Canoo public and value the combined entity at more than $2 billion, said the people, who asked not to be identified because the talks are private. "
Who is Canoo:
“Canoo is a Los Angeles based company creating and offering unique electric vehicles (EV) for subscription only and is designed for a world in which transportation is becoming increasingly electric, shared and autonomous.
A new business model that focuses on reducing production and infrastructure costs to make EVs more affordable to customers. The model wil will likely include perks like automatic vehicle registration, maintenance, insurance management and charging through a single app on a customer’s phone.”

Canoo's First Design Prototype

Sustainable Competitive Advantages:
  • Skateboard design allows them to develop near infinite products and tap markets
    • Delivery/transort market, taxi/uber, #vanlife, near infinite potentials
  • Membership only program which will lower user cost and improve the bottom line
  • Leadership has strong connections along the value chain
  • Partnerships that legitimize and grow the business

Other Highlights:
  • 2021 Launch
  • Targeting only key cities (throughout US/China) that represent a majority of the EV market
  • High-tech with level 2.5 Autonomy
  • Steer-by-wheel
  • 7 Seat interior, 250 Miles on full charge, 125 MPH top speed
  • Reached Beta testing phase within 19 months of inception
  • 300+ employees and hiring more

Subscription Model:
A membership model that puts an end to ownership, providing a hassle - and commitment-free EV subscription for one monthly, affordable price and with no set end date. The subscription may include services such as registration, maintenance, insurance management and charging—all from a single app … providing consumers with the convenience and value they deserve.
Canoo frees its members from the hassle and commitment of car ownership, saves them time and enables a more efficient way to use a car. By providing an attractive EV at an affordable price via its membership model, Canoo can reduce carbon emissions and increase the usage of cars.

Skateboard Platform:
Canoo is developing a “skateboard” architecture, which will house a battery and electric drivetrain that can achieve up to 300 miles of range. All of Canoo’s vehicles will share the same underpinning. Different cabins or “top hats” will be married on top to create the four unique vehicles. Leveraging the same fixed and flat skateboard allows for reduced R&D costs, efficient production and a better use of interior space. The skateboard houses the most expensive components of the vehicle and is designed in a way that most crash testing does not need to be repeated per vehicle, reducing the vehicle’s development cycle timeline and costs.
The propriety skateboard platform houses the battery and electrical management systems, HVAC systems, drive machines, crash support, and suspension components.

The Skateboard

Potential Skateboard Uses

Design :
An Urban Loft on Wheels” - Think VW 60's Bus on Acid
"We chose to completely rethink car design and focus on what future users will actually need … which is naturally personalized, intuitive and secure. Therefore, the non-driving features such as navigation, music or heating can be controlled via phone.
Canoo maximizes the unique benefits of EV technology by providing vehicles that have both a very large interior and very small overall footprint, perfect for city use. The minimalist design gives subscribers everything they need and nothing they don’t.
Canoo’s vehicles will move away from traditional three box car design, which have separate compartments for the engine, passengers and luggage. Instead, the Company is embracing a minimalist design that maximizes interior space

Party van anyone?
The canoo will be the first true steer-by-wire vehicle on the market - without a hardware connection between the steering wheel and wheels. This means the canoo steers by electric signals only. Steer-by-wire offers weight savings and paves the way for autonomous driving. We have complete freedom to locate the steering wheel to suit any cabin design and driver position. It also leads to a more responsive and smoother driving experience.

Vehicle Specs:
  • • One permanent magnet synchronous electric motor
  • • Rear wheel drive
  • • Power of the electric motor: 300 hp
  • • Battery pack size: 80kWh
  • • 250 miles range
  • • DC fast charging: 28 minute charging time to 80%
  • • Top speed: 125 miles/ hour (electronically limited)
  • • 0-60: 6.3 seconds (single motor)
  • • Length: 4421mm
  • • Width: 1898mm (without mirrors)
  • • Height: 1846mm
  • • Wheelbase: 2850mm
  • • Interior volume: 188.1 cubic feet
  • • Gross vehicle weight: 2600Kg
  • • Steel body
  • • Cabin mounted on rolling chassis (skateboard architecture)
  • • Thermoplastic (thermoplastic polymer) outer skin is robust, lightweight, corrosion free and dent resistant
  • • Transverse composite leaf spring suspension (front and rear) with stabilizer and twin tube damper
  • • 20” wheels
  • • Variable ratio, speed sensitive drive by wire electronic power steering
  • • Brake by wire with manual back up electromechanically boosted four-wheel anti-lock disc brakes with electronic brake force distribution
  • 7 Seater
  • Ability to use powertrain waste heat for cabin heating for greater efficiency
  • Over the air software updates
  • 5 star safety rating
  • Ability to be fully autonomous
  • The vehicle utilizes seven cameras, five radars, and 12 ultrasonic sensors

Canoo is headed by industry leaders. They boast deep connections throughout the automotive and EV world – furthered backed by Hennessy’s team/connections.
Ulrich Kranz — In Charge of Canoo; formerly head of BMW, Kranz is also on the board of Fisker
Richard Kim — In Charge of Design; formerly Exterior Designer of the BMW i3, i8 Concept Coupe & i8 Concept Spyder
Paul Balciunas — In Charge of Corporate Development & CFO; formerly Director, Corporate Finance & Business Development at Faraday Future VP, Global Automotive Investment Banking
Bill Strickland — In Charge of Vehicle Programs & Purchasing; formerly Chief Program Engineer at Ford, Assistant Chief Engineer at Ford, Product Development Launch Manager at Ford
Andrew Wolstan — In Charge of Legal; formerly Corporate Associate Munger Tolles & Olson LLP, M&A Associate Simpson Thacher & Bartlett LLP
Meera Pisharody — In Charge of HR; formerly Senior Director of HR at Minted, Director of Global People Operations at Mozilla
Clemens Schmitz-Justen – In Charge of Manufacturing; formerly President of BMW manufacturing USA
Phil Weicker – In Charge of Powertrain & Electronics; formerly Senior Director of Battery at CODA
Sohel Merchant – In Charge of Vehicle Architecture; formerly Tesla, Ford Motor Company
Alexi Charbonneau – In Charge of Skateboard & Cabin; formerly SpaceX, Tesla, Honda
Christoph Kuttner – In Charge of Interior & Exterior Systems; formerly BMW, Tesla, Mahindra

Partnership with Hyundai/Kia:
Hyundai Motor Group recently said it plans to invest $87 billion in future growth over the next five years, including $52 billion in future technologies for the Hyundai brand, $25 billion in electrification and future mobility for Kia, $4 billion joint-venture with Aptiv to speed development of self-driving vehicle technology, a 100 million-euro investment in Arrival, an air-taxi tie-up with Uber and a $6.7 billion push to commercialize clean hydrogen technology to power trucks, cars and ships.
By 2025, Hyundai-Kia hopes eco-friendly vehicles, including EVs, will account for 25 percent of its total sales.
Hyundai says it’s got plans to create a variety of purpose-built vehicles that could come from Canoo’s skateboard.”

Partnership with Nvidia:
“The NVIDIA DRIVE AGX platform provides high-performance, energy-efficient compute for object detection and sensor fusion. State-of-the-art algorithms will inform the driver on what’s around the vehicle, including cross-traffic alerts, blind spot detection and pedestrian detection, as well as convenience features such as adaptive cruise control and lane-centering control. The software-defined platform also allows for more advanced features, like auto lane change, traffic light recognition and evasive steering to be introduced when they become available.”
Partnership with Blackberry:
“BlackBerry and electric vehicle startup Canoo announced the ADAS systems for the company’s membership-based semi-autonomous EVs will be powered by the BlackBerry QNX operating system (OS), including radar sensors, parking sensors and cameras.
Canoo aims to bring its first production vehicles to market with advanced level 2 (or level 2.5) autonomous features as standard at the end of 2021. Level 2.5 features are consistent with partial autonomy, enabling the vehicle to manage acceleration and steering and monitor components of its environment in certain conditions.”
Partnership with ArcelorMittal:
“The high level of advanced steels in this vehicle demonstrates steel’s many advantages, which also relate to its versatility, recyclability and its contribution to global green-house gas reduction. In these areas, steel outperforms other materials used in the automotive marketplace. ArcelorMittal is the the world's leading steel and mining company with large market share the auto sector.”
China Connections:
“Canoo is backed by David Stern, a director at Prince Andrew’s startup incubator, and Pak Tam Li, the head of a massive investment firm in China and the son-in-law of a man who was once the fourth-most senior leader in China. Canoo has also received support from Taiwanese touchscreen supplier TPK, which is run by billionaire Michael Chiang, two people with knowledge of the company’s finances tell The Verge. In fact, Canoo’s headquarters in Torrance, California is owned by a shell company set up by Foster Chiang, TPK’s vice chairman, according to property records.”

VW, Rivian, GM, Toyota, NIO, Xpeng, Weltmeister, BYTON, AIWAYS, Arrival and Lucid Motors among others. As you can see the market is being saturated with major and lesser players battling for position.

Product Roll Out:
- “We will roll out city-by-city,” he says. “Eight to 10 cities represent more than 70% of all the electric vehicle population [so] there is no need to provide our EV nationwide.”
- The plan for 2021 is to launch in Los Angeles and have another eight cities account for the company’s U.S. market. That means four on the West Coast and four on the East Coast, according to Kranz.
- “After the launch in the U.S. we are considering launching the vehicle in China… There are 18 cities that represent 75% of the EV population in China,” he said.

Market Data:

EU as an Example
“The global autonomous vehicle market is expected to reach nearly $600 billion by 2026.
I could go deeper in market research but it's late and I have covered the market more lightly in previous write ups: https://www.reddit.com/SPACs/comments/i1f21b/cant_have_evs_without_the_ev_infrastructure/ https://www.reddit.com/SPACfeed/comments/hw2439/soac_and_the_esg_spac_etf/
The EV market isn't going anywhere and its set for significant CARG over the next decade while key players battle for market position/share.
It will be supported through gov subsidies and major organizations transitioning to EV for example: Kyoto Protocol/The Moving Forward Act, USPS EV Contract, Amazon, Walmart Fedex etc going electric.

Helpful Links/More Info about Canoo:
https://www.youtube.com/watch?v=JvWFpnUbRv8 – Canoo General Vid
https://www.youtube.com/watch?v=Qaeq23sabCc – CEO Interview at Automobility LA
https://insideevs.com/reviews/432692/jay-leno-canoo-drive-review/ - Jay Leno’s Garage
https://www.forbes.com/sites/samabuelsamid/2019/09/24/introducing-canoo-no-paddles-required-for-this-electric-van/#465c6744641d – Forbes Article
https://www.bloomberg.com/news/articles/2019-09-25/california-startup-plans-to-sell-electric-vehicles-by-subscription - Bloomberg Article
https://www.cnn.com/2019/09/24/cars/canoo-electric-car-subscription/index.html - CNN
https://www.press.canoo.com/ - Canoo Press
Hennessy Capital Acquisition Corp.

This Hennessy team is made of experienced veterans featuring connections to NASA, Haliburton, McKinsey & Company, Honeywell, and AT&T among others.
  • · 300m in trust
  • · August 27th Extension Vote
  • · 72% institution owned (JP Morgan, BMO, BOA, Deutsche Bank, Goldman, Morgan Stanley)
  • · Nomura, Stifel UW
  • · Warrants 1:1
    Additional Terms:
  • Crescent Term: $9.20 threshold
  • Anchor Investor: BlackRock $32.5M
  • Forward Purchase: Nomura $125M
Hennessy’s Previous SPAC’s
HCAC I - BLBC hit 25 – Bluebird Bus https://www.marketwatch.com/investing/stock/ecol
HCAC II - DSKE hit 14 – Daseke Trucking https://www.marketwatch.com/investing/stock/dske
HCAC III - ECOL hit 28 before merging then 75 - Waste Management https://www.marketwatch.com/investing/stock/ecol
DSKE is one the largest trucking/freight logistics companies in the US. They are restructuring and are getting rid of debt. They just beat earnings last week. Warrants are super cheap closing at 0.19c on Friday. Looks like a good buying opportunity IMO.
- Daseke Investor Pres - here
- Earnings Call Transcript - here

More HCAC Info:

  • Terms of a deal haven’t been finalized and the talks could still fall apart
  • Maybe the market responds negatively at "just another EV SPAC" announcement?
  • Sector tailwinds could cool off leaving Canoo/HCAC in the dust
  • Maybe the market was expecting Proterra and will react poorly? Unlikely

Final Thoughts:
  • A forward looking company with 10,000 pre orders, strong leadership looking and balance sheet synergies set for high growth in key EV markets of US and (hopefully) China.
  • Canoo is set to become a top contender in the EV market for years to come thanks to their membership program, key strategic partnerships, skateboard/IP and first to market advantage despite EV SPAC market saturation.
  • Sector tailwinds and ability to partner with (more) major players in the automotive, delivery/transport/taxi, software, battery and other technology sectors will further support and substantiate Canoo’s growth/market cap potential.
  • Company has/will have direct ties to Uber, Tesla, Fisker, China, BMW, NASA, Blackrock, Nomera, Faraday Future, Hyundai, Kia, Nvidia, Blackberry among others plus more TBA
  • Canoo > Proterra
  • 2b valuation likely puts this just out of reach without a TBA PIPE (maybe this is why HCAC LOI taking time to come to fruition).

Disclaimer: I am long HCAC
TLDR: HCAC is rumored to be merging with Canoo – a company with potential to become a market leader in the EV world
submitted by GhostfacexProdigy to SPACfeed

An Introduction to Human Motorsport (part 6)

Part 1
After the end of the Galactic Racing League season, the human team invited me back to Earth to watch the first official test of the car they would be using in their debut season next year. The track they brought me to was a confusing mess that almost looked like two tracks merged into one. The southwest corner was a fairly normal-looking track, while the other section was huge. Although it was only about a third of the size of the Isle of Man course I had been to earlier in the year, it was still about four times longer than the southwest section.
The humans told me that it really was two tracks merged into one. The large one was the original track, but the current version of the southwest track was built later after safety concerns were raised about the older track. Most races used the smaller track, but the original track was still used for testing and even the occasional race because it had a few of nearly every single type of corner, so it was a great way to make sure every single part of a car was working the way it’s supposed to. They led me to the pit lane for the shorter of the two circuits.
When we entered the garage, I got my first look at the car. It looked similar to the fastest class used at Le Mans, but it was a bit longer and the driver sat a bit further forward and in the center of the car. As I walked around the car, I noticed that there were three separate engines. At the front end of the car, I could see a mechanic performing the final checks on a very large electric motor connected to the front wheels. At the back, a different mechanic was inspecting the largest combustion engine I had ever seen. It was the first human-designed combustion engine I had seen up close, so I don’t know how it compares to other engines they have. But compared to other engines built by the rest of the galaxy, it was huge. It had two separate rows of four cylinders separated from each other by a right angle.
Attached to both sides of the second engine were some strange objects I had never seen before. The objects looked like some kind of tube wrapped in a circle around a fan, and each one was connected to both the intake and the exhaust systems. The humans would be the first species in the League to use combustion engines, so I’m only somewhat familiar with the technology. I don’t know what these devices do or if they are unique to human-designed engines, but I had certainly never seen one before.
Behind the combustion engine, there was a large fan sticking out of the back of the car. When I asked the humans what it was for, they said “cooling” and then started laughing as if there was some kind of inside joke I wasn’t a part of.
The mechanic who was showing me around told me that several different companies had collaborated on the project. The chassis was indeed based on a car that raced at Le Mans. The electric motor was provided by a small company specializing in extremely powerful electric road cars, but tuned down a bit to save weight by using smaller batteries. The combustion engine was a modified version of the one designed for the car that currently holds the production car top speed record. In total, it was a bit more than three times as powerful as the cars I had seen in Monaco and it only weighed a little bit more.
Just as I finished inspecting the car, Alex walked into the garage wearing a racing suit and climbed into the car as one of the mechanics handed him a helmet. He started the car and drove out of the garage. At idle, the engine sounded fairly similar to the car that I rode in at Le Mans. When Alex opened up the throttle, however, the deep rumble turned into a much higher pitched scream. All of the mechanics turned their attention towards the wall of screens behind us. Some of the screens were clearly monitoring data from sensors on the car, but some were showing live camera feeds from inside the car and from various locations around the track.
Alex took the car around the shorter circuit very slowly, and he returned to the garage without even completing a lap. After the mechanics checked over the car one last time, the real test began. The test would consist of five laps around the short circuit so Alex could get a feel for the car, then ten laps around the longer circuit to gather data about the car. Once Alex did that, he would get out of the car and the driver who was going to compete in the League, Tony, would run the same test. For this initial test, the electric motor would be running on a lower power setting so they could complete the whole thing without draining the battery.
Once Alex finished his outlap, I got my first glimpse of the true potential of human engineering. As he rounded the final corner, the wing tilted to the side to lift the inside edge further off the ground. Then he opened up the throttle, and the car accelerated down the main straight faster than I thought was possible, even for a human ground vehicle. After just a few seconds, he was already at the end of the straight and then proceeded to demonstrate the just-as-incredible deceleration ability of the car. As the car slowed down, it made a growling sound that almost sounded like he was still giving it a lot of throttle while on the brakes.
That kind of deceleration should have at the very least knocked him out. I turned to the human next to me and asked, “How?” She smiled and replied, “Remember when I asked you about inertial dampeners?” It took me a second, but then the realization hit me. So that’s what they were planning. Of course a human would think of something like that. She continued, “It took us a while to calibrate them just right. Obviously we have to get rid of some of the forces so the driver can actually drive the car, but if we turned it up too far then the driver would lose all feedback from the car and wouldn’t be able to tell what it was doing.”
The rear wing on this car seemed to be much more versatile than the ones I had seen on the other human racecars. The ones in Le Mans had been entirely fixed in position, and the ones in Monaco just had a flap that could open or close. This one had a pivot point that allowed it to tilt side to side and forwards or backwards so that it would always be at the ideal angle no matter where the car was on the track.
As Alex got more used to the car, he began to go faster and faster. The speed he was able to maintain through the corners shouldn’t have been possible. The footage from the onboard cameras looked like it was being played back at double speed. After the fifth lap, he came back into the garage to refuel the car before going out on the longer track.
Given the length of the longer track, I doubt any League car could have lapped it in fewer than twelve minutes at best, maybe even longer. Alex completed his first timed lap in almost exactly four minutes. The mechanics all started cheering, and the one who was monitoring the data from the car laughed. I asked what was so funny, and he told me that Alex had just beaten the lap record for this track by well over a minute and he wasn’t even pushing hard yet.
The second lap was about ten seconds faster than the first one, and each lap after that improved by a second or two on the previous until, at the end of the fifth lap, Alex had to refuel again. Once he went back out, the pattern of improvement continued. By the ninth lap, he was about twenty-five seconds faster than he had been on the first lap. Then, on the last lap, he improved by nearly five seconds.
After Alex handed the car over to Tony, I followed him and a few of the mechanics into a meeting behind the garage. Somehow, Alex seemed to believe that the car wasn’t properly set up yet and, with some adjustment, could go even faster. Before any of the mechanics spoke up, Alex said, “I think we need to look at the throttle mapping for the electric motors. To me, it felt like they were coming on too soon on corner exit and making the car understeer pretty badly.” Someone scribbled something down on a notepad, and then all of the mechanics in the room started asking Alex as many questions as they could think of about the car. Overall, he seemed impressed with the power and handling, but he had a few complaints. Apparently, the inertial dampeners were too strong and he had “driven road cars that provide more feedback than that.” As the mechanics began to run out of questions, one of them asked what caused the time improvement between the ninth and tenth laps. Alex responded with a question of his own: “How much of a difference was it?”
“Five seconds. Between laps two and nine, you never improved by more than two point two seconds lap to lap.”
“Wow, that much? When I started getting closer to the limit on laps eight and nine, I felt like the TC was cutting in too soon and ruining my corner exits. So I turned it off while I was on the back straight on lap nine. I knew I could go faster without it, but I didn’t expect five seconds.”
Did he just say that he turned off the computer assistance because it was slowing him down?
Once Tony completed his laps, the team held another meeting with him. He provided the same feedback Alex did, and the team quickly got to work on the car to make a few changes before sending the drivers out for one more timed lap each to make sure the changes worked. Alex completed his final lap in three minutes and twenty-five seconds, and Tony was two seconds faster than that. Both of them seemed much more pleased with the balance of the car this time around. As the mechanics started to pack everything up, Alex casually pointed out that, if the electric motor was turned up to full power, he wouldn’t be surprised if the car could have been fifteen or twenty seconds faster than it had been during today’s test.
I think I know who’s going to win the League next year.
Part 7
submitted by ws_18 to HFY

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