In a move that’s raising eyebrows across the electric vehicle (EV) world, a federal judge has approved the sale of bankrupt EV startup Canoo’s core assets to none other than its own CEO, Anthony Aquila. The deal, valued at approximately $4 million in cash, was greenlit by Judge Brendan Shannon after he deemed the sale process fair and properly conducted, despite limited objections and controversy.

The Comeback CEO?

Aquila’s purchase, once officially formalized, will include most of the startup’s remaining assets. According to his legal team, he intends to use these resources to continue providing services to high-profile clients such as NASA and the U.S. Department of Defense—both of which had previously purchased Canoo vehicles before the company’s financial collapse.

Canoo now joins a growing list of EV hopefuls that couldn’t sustain operations, including Fisker, Lordstown Motors, and Nikola. And just like Lordstown and Nikola, Canoo’s story has taken a twist where the CEO (or former CEO) attempts to reclaim the business after its fall. Lordstown’s founder successfully scooped up much of his own company during bankruptcy, while Nikola’s controversial founder Trevor Milton is trying to do the same.

Who Else Wanted a Piece of Canoo?

While Aquila ultimately made the only bid, he wasn’t the only party interested. According to Mark Felger, a lawyer representing Canoo, as many as eight other entities signed non-disclosure agreements and considered purchasing the assets. However, none made it to the finish line. One group came close but was flagged for potential complications with the Committee on Foreign Investment in the United States (CFIUS) due to foreign ownership ties.

Another near-bidder made a bit more noise: Harbinger, an electric truck startup founded by former Canoo employees. Harbinger argued that Canoo was concealing valuable information from potential buyers—especially surrounding a contentious lawsuit between the two companies. Filed in late 2022, the lawsuit accuses Harbinger’s founders of stealing trade secrets when they left Canoo to start their new venture in 2021.

A Legal Cloud Hanging Over the Deal

This lawsuit wasn’t just a background detail—it became central to the sale’s controversy. Harbinger’s attorney, John Morris, claimed that Canoo never clearly defined which trade secrets were allegedly misappropriated. This lack of specificity, even in confidential court filings, led to a claim that the estate’s value couldn’t be properly appraised. As a result, Harbinger and others argue that bidders didn’t have the full picture.

Perhaps more concerning was a clause in the sale agreement giving Aquila the final say on any settlement in the trade secrets case. Morris labeled this a betrayal of the trustee’s fiduciary duty, suggesting Aquila, as both buyer and potential plaintiff, had too much power in steering outcomes.

But Judge Shannon wasn’t convinced. He backed the trustee’s stance, noting that negotiations with Aquila had stretched over weeks, involved multiple offers, and that everything about Aquila’s ties to Canoo had been transparently disclosed. “The trustee has run a process that has resulted in a significant offer,” he remarked, adding that the sale was “proceeding in good faith.”

Loose Ends and Final Steps

Several other objections to the sale came from vendors and companies still owed money or holding Canoo’s equipment. However, most of those issues, according to Felger, are currently being resolved outside of court.

So, what’s next for Canoo under Aquila’s renewed leadership? While the company's future still hangs in legal and financial limbo, one thing is clear: in the rapidly imploding EV startup space, the CEOs who once led these firms into trouble are now trying to buy their way back to redemption.

Whether that ends in reinvention or a repeat collapse remains to be seen.