What happened

Canoo (GOEV 2.59%) stock is seeing a significant pullback following the second-quarter earnings report this week. Prior to the opening of the market today, the electric vehicle (EV) specialist's share price was down 13.7% from last week's market close, according to data from S&P Global Market Intelligence.

Canoo published its Q2 results after the market closed on Aug. 14, posting a smaller-than-expected loss for the period. While the average analyst estimate had guided for a non-GAAP (adjusted) loss per share of $0.19, the company's actual per-share loss for the period came in at $0.14. The stock initially gained ground in after-hours trading but sold off in the next daily trading session and continued to move lower as the week progressed.

So what

Despite the narrower-than-anticipated loss in Q2, it looks like the market isn't sold on Canoo's path forward. The company said it had entered into the "revenue and income generation phase" in the quarter, but it didn't actually record any sales in the period.

The company did announce that it has signed a deal with another Fortune 100 company for its national fleet, but Wall Street was cold on the news. Canoo appears to be in the early stages of ramping up production and actually delivering vehicles to customers. However, investors appear to be losing confidence that it will be able to stave off bankruptcy and solidify itself as a lasting player in the EV space.

Now what

While some EV stocks have seen strong rebound momentum across 2023's trading, Canoo hasn't participated in the rally. The company's share price is down roughly 64% year to date. The stock is also down roughly 98% from its lifetime high in December 2020.

Canoo recorded a net loss of $70.9 million in Q2, ending the period with roughly $5 million in cash. With the company subsequently taking on new debt and completing additional stock sales, it would have had roughly $61 million in liquidity at the end of the period. Based on its current financials and rate of burning through cash, the EV specialist will need to raise more funding in the near future.