Electric vehicle startup Canoo revealed that Walmart has agreed to buy at least 4,500 electric delivery trucks in a move that represents the biggest success for the beleaguered company, whose shares jumped 70% during morning trading following the news.
Walmart has signed a “definitive agreement” to purchase at least 4,500 and possibly up to 10,000 “Lifestyle” all-electric delivery vehicles, which are an electric pickup truck that allows for local short-haul connections.
Walmart relies on thousands of stores to deliver its online purchases quickly and at low cost in order to outperform Amazon, which is considered the strongest competitor in express delivery of Internet orders. Walmart has launched several services specialized in e-commerce, including InHome, Express Delivery, and Walmart Plus.
Canoo marks Walmart’s third major deal to expand its fleet of electric trucks. It received about 5,000 electric trucks from its joint venture with General Motors Bright Drop earlier this year, and has also purchased 1,100 Ford E-Transit trucks. ‘, some of which have already been run. Read more [General Motors Signs Deals With Walmart and FedEx] and [Walmart’s First-Quarter Results Hurt Costs and Supply Chains].
Canoo is one of the emerging American companies in the electric vehicle industry that listed its shares on the stock exchange through a merger with Blank Check Company (SPAC), and its shares rose briefly during trading above the $20 price that was its subscription in late 2020, but it has fallen since CEO and co-founder Ulrich Kranz left the company last year, and as of this morning, the shares are trading at close to $4 per share. Read more [Polestar Electric Vehicle Share Listed Via SPAC Deal].