Canoo Announces 4,500 EV purchase by Walmart

Jul 12, 2022 By MarketDepth

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Electric vehicle startup Canoo (NASDAQ: GOEV) announced Tuesday that Walmart (NYSE: WMT) will be acquiring a minimum of 4,500 of its upcoming electric delivery vans. Canoo shares skyrocketed over 70% during premarket trading following the news.

“We are proud to have been selected by Walmart, one of the most sophisticated buyers in the world, to provide our high-tech, all-electric, American made Lifestyle Delivery Vehicle to add to their impressive logistics capabilities.”

Tony Aquila, investor, chairman, and CEO of Canoo

Walmart signed a “definitive agreement” to buy at least 4,500 and as many as 10,000 all-electric delivery vehicles, which are designed for local delivery service, Canoo said. The retailer plans to use the vans to deliver online orders. Furthermore, the vehicles will be manufactured at Canoo’s Oklahoma factory and are anticipated to be in service by next year.

“Our LDV has the turning radius of a small passenger vehicle on a parking-friendly, compact footprint, yet the payload and cargo space of a commercial delivery vehicle. This is the winning algorithm to seriously compete in the last-mile delivery race, globally. Walmart’s massive store footprint provides a strategic advantage in today’s growing ‘Need it now’ mindset and an unmatched opportunity for growing EV demand, especially at today’s gas prices.”

Tony Aquila, investor, chairman and CEO of Canoo