Canoo scores deal with Walmart for 4,500 electric vans

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.