Canoo Inc. ( GOEV ) shares are trading lower in the premarket session on Tuesday after the electric vehicle company filed for Chapter 7 bankruptcy.

What Happened: The filing, made with the U.S. Bankruptcy Court in Delaware, initiates the liquidation of Canoo's ( GOEV ) assets under the supervision of a court-appointed trustee.

The company's failure to secure crucial financial support, including from the U.S. Department of Energy's Loan Program Office, has led to this decision.

Despite its partnerships with high-profile organizations like NASA, the U.S. Department of Defense (DOD), the U.S. Postal Service (USPS), and Walmart Inc. ( WMT ) , Canoo ( GOEV ) struggled to attract the financial backing needed to continue operations.

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Why It Matters: Executives explored potential funding from foreign sources, but these efforts also proved unsuccessful.

Tony Aquila, chairman and CEO, expressed deep disappointment over the company's closure. He acknowledged the company's belief in its mission but recognized that the business could not continue without sufficient capital.

Effective immediately, Canoo ( GOEV ) will cease operations, and the Bankruptcy Trustee will oversee the liquidation process.

While the closure marks the end of Canoo's ( GOEV ) journey, the company's legacy includes its innovative approach to electric vehicles, with notable contracts from governmental and commercial entities.

According to Benzinga Pro, Canoo ( GOEV ) stock has lost over 98% in the past year.

Price Action: Canoo ( GOEV ) stock is trading lower by over 69% in the premarket session at last check Tuesday.

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Image: Courtesy of Canoo ( GOEV )