Canoo Inc ( GOEV ) shares fell some 72% to 37 cents during Tuesday’s session after the company announced it filed for Chapter 7 bankruptcy.

What To Know: The announcement marks the end of Canoo’s operations. The filing, submitted on January 17 in the U.S. Bankruptcy Court for the District of Delaware, includes Canoo ( GOEV ) and its key subsidiaries, such as Canoo Technologies Inc. and Canoo Manufacturing LLC.

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Under Chapter 7, a court-appointed trustee will oversee the liquidation of Canoo's ( GOEV ) assets to settle its liabilities. This process eliminates the authority of the company's Board of Directors and executive leadership. All claims will be addressed according to bankruptcy laws.

Once considered a promising player in the EV market, Canoo ( GOEV ) faced mounting financial challenges, including cash flow issues and delays in production.

The liquidation underscores the difficulties startups face in the competitive electric vehicle industry, as they contend with high costs and intense competition.

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According to data from Benzinga Pro, GOEV has a 52-week high of $102.07 and a 52-week low of $0.32.