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Canoo Walmart deal for 4,500 vans sends EV stock jumping

Walmart to Purchase 4,500 Canoo Electric Delivery Vehicles to be Used for Last Mile Deliveries in Support of Its Growing eCommerce Business

Courtesy: Canoo | Walmart

Electric vehicle startup Canoo said Tuesday Walmart has agreed to buy at least 4,500 of its upcoming electric delivery vans, in a significant win for the embattled vehicle maker.

Shares of Canoo were up more than 70% in premarket trading after the news was announced to trade above $4 per share.

Walmart has signed a “definitive agreement” to purchase at least 4,500, and possibly as many as 10,000, of its all-electric Lifestyle Delivery Vehicles, a small electric van designed for local delivery service, Canoo said.

The big-box retailer plans to use the vans for local deliveries of items ordered online. The vans will be built at Canoo’s Oklahoma factory and are expected to go into service next year. Terms of the deal were not disclosed.

Canoo is one of several U.S.-based electric vehicle startups to have gone public via mergers with special-purpose acquisition companies, or SPACs. The company’s shares briefly surged to over $20 after its stock-market debut in late 2020, but have slid since co-founder and CEO Ulrich Kranz departed last year.

Correction: This story has been updated to reflect that the vans will be built in Canoo’s factory in Oklahoma.

Read More: Canoo Walmart deal for 4,500 vans sends EV stock jumping

2022-07-12 08:16:47

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