(This May 10 article corrects the first paragraph. Canoo did not try to raise more capital but had access to $600,000,000 of capital.

Tina Bellon

(Reuters] – Canoo Inc, a company that makes electric vehicles, has warned investors that they might not be able pay their financial obligations. The firm said Tuesday it had $600m in financing but had “substantial doubts” about whether it will continue to exist.

This warning was issued as Texas-based Company reported its first quarter earnings. It also disclosed a net loss of $125.4 Million. After a day of 5% decline, shares dropped 13% after-hours trading.

Canoo’s cash crisis highlights the difficulties EV startups have scaling up high-priced vehicle production in face of traditional carmakers investing billions in new technology.

Canoo stated that it still had $105 million of cash available at the end March. This is less than $120 million spent on operating expenses in the first three months. It needed additional funds to cover capital expenditures in the first quarter, which came out at $28.4million on zero dollars revenue.

Tony Aquila, Canoo’s Chairman and Chief Executive Officer stated in a statement that “we have been very clear about our approach to raising capital prudently” and that he will maintain this disciplined approach.

Aquila stated that Canoo has more than $600million in available capital and had “significant experience raising capital on challenging markets.”

Canoo claimed that 39 Gamma vans had been built as of March 31st and that 17,500 pre-orders had been placed with a value projected at $750 million. On Tuesday’s earnings call, executives stated that the company produces up to 12 vehicles per day and is focusing on fleet customers.

In April, the company won a contract from the U.S. Space Agency to construct vehicles to transport astronauts to NASA’s launch pad.