Electric vehicle maker Canoo Inc. of Bentonville said Tuesday (July 12) that retail giant Walmart has signed a definitive agreement to buy 4,500 delivery vehicles, with an option of buying up to 10,000.
According to a news release, Walmart will use Canoo’s Lifestyle Delivery Vehicle (LDV) to deliver online orders. The vans will be built at Canoo’s facility near Dallas and are expected to go into service next year.
The financial terms of the agreement were not disclosed. In premarket trading, Canoo (NASDAQ: GOEV) shares were up more than 75% to $4.15 after the news was announced.
“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,” Canoo Chairman and CEO Tony Aquila said in a statement. “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.”
Canoo announced last year that it selected Bentonville as its headquarters and Pryor, Okla., as the site for its U.S. manufacturing. The mobility company has also signed a 10-year lease to occupy a new 270,000-square-foot industrial building at 4700 S.W. Regional Airport Blvd. in Bentonville.
“We’re encouraged that by being located in close proximity to the Canoo headquarters, we have the advantage to collaborate and innovate in real-time as well as the opportunity to aid in the creation of manufacturing and technology jobs here in our home state of Arkansas,” David Guggina, senior vice president of innovation and automation, Walmart U.S., said in Tuesday’s statement.
Canoo said the LDV is engineered for high-frequency stop-and-go deliveries and speedy vehicle-to-door drop-off, including grocery and food/meal delivery.
Walmart said the LDV will contribute to its goal to achieve zero emissions by 2040.
“We’re thrilled to continue diversifying our last-mile delivery fleet with Canoo’s unique and sustainably focused all-electric technology which will provide our associates with safe, ergonomic delivery vehicles,” Guggina said. “Today, the closest Walmart to customers is right in their pockets – it’s the Walmart app. By continuing to expand our last-mile delivery fleet in a sustainable way, we’re able to provide customers and Walmart+ members with even more access to same-day deliveries while keeping costs low.”
Canoo also has a deal with NASA to supply vehicles to transport fully-suited NASA astronauts to their moon-bound spacecraft as part of a mission to complete the first human lunar landing in more than 50 years.