Canoo Stock Jumps on Electric Car Order From Walmart

By Will Feuer

Shares of Canoo Inc. jumped more than 20% in premarket trading after the electric car maker said it has signed a purchase agreement with retailer Walmart Inc.

Through the agreement, Walmart will purchase 4,500 of Canoo's all-electric delivery vehicles, with the option to purchase up to 10,000 units, the companies said. Walmart will use the vehicles to fulfill online orders to help reach zero-emissions by 2040, the companies said.

Canoo's delivery vehicle, the Lifestyle Delivery Vehicle, is expected to begin hitting the road in 2023, but the companies plan to kick-off advanced deliveries to refine vehicle configuration in the Dallas Fort Worth metroplex in the coming weeks, they said.

"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," Canoo Chairman and Chief Executive Tony Aquila said.

Last year, Canoo selected the longtime corporate home of Walmart, Bentonville, Ark., as its headquarters.

Shares of Canoo rose 21.5% to $2.88 a share in premarket trading. Through the end of trading on Monday, Canoo stock was down more than 69% so far this year.

Write to Will Feuer at [e-mail]

(END) Dow Jones Newswires

July 12, 2022 06:38 ET (10:38 GMT)

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