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Shares of Canoo jumped about 37% in trading before the bell,
after Walmart said on Tuesday that it also had an option to
purchase up to 10,000 units as it electrifies its delivery
fleet.
Financial terms of the deal were not disclosed.
In June, Walmart said it was expanding transportation pilots
with the manufacturers of electric, hydrogen and natural
gas-powered vehicles, including Cummins Inc and Daimler Truck's
Freightliner.
The retailer in January said it had reserved 5,000 electric
delivery vans with General Motors' commercial EV business,
BrightDrop.
A large number of companies have been pushing into the growing
commercial EV space as governments around the world are pressing
companies to slash CO2 emissions.
Companies including FedEx Corp, Amazon.com Inc and United Parcel
Service Inc have pledged to shift their large delivery fleets to
EVs.
The deal announced on Tuesday also includes Canoo's fully
electric Lifestyle Delivery Vehicle (LDV). The EV startup
anticipates starting production of the LDVs beginning in the
fourth quarter of 2022, according to the statement.
Canoo Chief Executive Officer Tony Aquila said the firm expects
to build 14,000 to 17,000 vehicles in 2023.
"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," said David Guggina, senior vice president of
innovation and automation at Walmart U.S.
(Reporting by Ann Maria Shibu and Akash Sriram in Bengaluru and
Ben Klayman in Detroit; Editing by Amy Caren Daniel)
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