Canoo, Inc. (NASDAQ: GOEV) is engaged as a high-tech, advanced mobility company, which is focused on the manufacturing and sale of electric vehicles. Shares of the EV manufacturer are soaring 66% through afternoon trading on Tuesday, July 12, 2022. Over the past three months, Canoo has seen average daily volume of 2.91 million shares. However, volume of 142.57 million shares or dollar volume of around $580.26 million, has already exchanged hands through afternoon trading.
Shares of Canoo are surging after the company announced it has entered into a definitive agreement with Walmart (NYSE: WMT), where Walmart has agreed to purchase 4,500 electric delivery vehicles starting with Canoo’s Lifestyle Delivery Vehicle (LDV). The agreement includes the option for Walmart to purchase up to 10,000 vehicles. The agreement comes as Walmart aims to bolster its last mile deliveries in order to support its budding ecommerce business.
Canoo’s LDV is scheduled to hit the roads beginning in 2023. However, the two companies announced they would begin advanced deliveries to help refine and finalize EV configurations in the Dallas Fort Worth area in the coming weeks.
The Walmart agreement becomes the latest for Canoo in the state of Arkansas. Last year, the company announced Bentonville, AK as its new headquarters and Pryor, OK as its U.S. manufacturing site. The EV company estimates LDV production to begin during the fourth quarter of 2022.
“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. 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,” said Tony Aquila, Investor, Chairman and CEO of Canoo. “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.”
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