Electric vehicle startup Canoo is being investigated by the U.S. Securities and Exchange Commission, the electric vehicle startup’s CEO told analysts in a post-earnings call.

What Happened: The Los Angeles, California-based company, which went public through a reverse merger with special purpose acquisition company Hennessy Capital Acquisition, said the SEC has informed the company the current investigation is a fact-finding inquiry.

In a separate filing, the company revealed the investigation covers the merger company HCAC’s IPO, operations, business model, revenues, revenue strategy, customer agreements, earnings, and other related topics, along with a string of executive departures at the company.

Canoo’s Multi-Purpose Delivery Vehicle

Canoo said it learned of the investigation on April 29 and is cooperating with the investigation.

Why It Matters: The SEC investigation follows a string of executive departures and the loss of a key automotive deal. The electric vehicle startup last month named one of its largest investors and executive chairman Tony Aquila to the role of chief executive. Aquila replaced co-founder Ulrich Kranz, who resigned effective April 30.

[Renato Giger was named interim CFO in March, as Paul Balciunas stepped down. Giger was formerly the chief financial operating officer at AFV Partners.]

Canoo had last year said it was in talks with ride-sharing company Uber Technologies and others to supply its electric vehicles.

The company’s first-quarter loss narrowed to $15.2 million compared to a loss of $30.9 million a year ago.

This story originally appeared on Benzinga. © 2021 Benzinga.com.

Benzinga does not provide investment advice. All rights reserved.

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