The automotive industry has been buzzing with anticipation over Apple’s Project Titan, the tech giant’s foray into the world of self-driving cars. However, recent developments have shifted the spotlight from innovation to legal matters. Ulrich Kranz, a key figure on Apple’s Project Titan team, is now facing a lawsuit filed by the U.S. Securities and Exchange Commission (SEC) over alleged securities rule violations during his tenure as CEO at electric car startup Canoo.
A Tumultuous Journey
Ulrich Kranz’s journey through the automotive landscape has been marked by significant roles and accomplishments. Before joining Apple in June 2021, Kranz spent three decades at BMW, where he played a crucial role in the development of the BMW i3 and i8 electric and hybrid vehicles. His departure from BMW in 2016 led him to a brief stint at EV startup Faraday Future before co-founding Canoo.
Kranz’s tenure at Canoo saw him driving the company towards a public listing through a merger with a special purpose acquisition company (SPAC). This strategic move attracted attention, placing Canoo on the map of promising electric vehicle startups. However, the trajectory of success encountered turbulence when the SEC launched an investigation into Canoo’s operations, financial projections, and the departure of key executives.
The Lawsuit Unveiled
The SEC’s lawsuit targets Ulrich Kranz and Canoo’s former CFO, Paul Balciunas, alleging misconduct related to revenue projections and financial disclosures. The regulatory body asserts that unreasonable revenue projections were provided, potentially misleading investors. Moreover, Kranz is accused of misstating his compensation during his time at Canoo.
The SEC’s legal action seeks to bar both Kranz and Balciunas from serving as officers at public companies and impose fines on them. It’s worth noting that Canoo itself settled with the SEC earlier this year, agreeing to pay a $1.5 million fine as part of a resolution to an investigation centered around its SPAC merger.
Implications for the Future
The SEC’s lawsuit casts a shadow over Ulrich Kranz’s previous role at Canoo and raises questions about his involvement in Apple’s Project Titan moving forward. Despite the legal challenge, Kranz remains a part of the Project Titan team, currently overseeing hardware design for the highly anticipated Apple Car.
