Jul 12, 2022 - Economy

Canoo scores deal with Walmart for 4,500 electric vans

A blue van emblazoned with the logo of Walmart

Canoo released this photo depicting the electric van it plans to manufacture for Walmart. Photo courtesy of Canoo

Electric vehicle startup Canoo secured a deal to sell 4,500 delivery vans to Walmart, in a much-needed win for the company.

  • Canoo's stock spiked on Tuesday by over 60% to trade shy of $4, just two months after it warned that there was "substantial doubt" about its ability to stay afloat.

Why it matters: The deal offers comes as Walmart is aiming to bolster its delivery and supply chain management infrastructure.

  • It also injects life into the ailing community of EV startups, several of which have been teetering amid questions about their ability to compete with established automakers.

Details: Walmart agreed to buy thousands of Lifestyle Delivery Vehicles (LDV), with the option to purchase up to 10,000. Pricing was not disclosed.

  • Canoo said it will make the electric van in Pryor, Oklahoma, starting in the fourth quarter of 2022 with deliveries beginning in 2023.
  • Walmart innovation executive David Guggina said in a statement that the deal will "expand our last mile delivery fleet in a sustainable way," and widening "same-day deliveries while keeping costs low.” 

The intrigue: Walmart has also ordered electric vans from General Motors and Ford. Canoo is based in Bentonville, Arkansas, making it neighbors with Walmart.

Nathan's thought bubble: It's not a stretch to say this deal was critical for Canoo's EV ambitions.

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