Apple Car Project Stands to Benefit From Downfall of EV Startup Canoo

In 2019, $Apple(AAPL.US)$ purchased Drive.ai to bring in autonomous vehicle expertise. Some of the engineers and managers acquired in that deal are now central to the company’s work on a car operating system and self-driving software.
In recent months, Apple also hired several people from the auto industry to help ramp up its car development work after top managers left the project. It’s recruited key people from $Ford Motor(F.US)$ , $Rivian Automotive(RIVN.US)$ , $Tesla(TSLA.US)$ , $BAYER MOTOREN WERK(BMWYY.US)$ , Mercedes, Volvo, Waymo and other brands.
But a potential acquisition target has emerged that could help Apple’s project even more: Canoo.
The EV startup, founded five years ago, has been struggling. Last week, it warned investors that it may not have enough cash to keep operating. Canoo has lined up additional funding, but has also said that it doubts it can produce as many vehicles this year as planned.
It also wouldn’t be too difficult for Apple and Canoo to start talking. Canoo’s former chief executive officer, Ulrich Kranz, is now one of the top executives on Apple’s car project. Apple also has some former Canoo engineers on staff.