Commercial and consumer electric vehicle (EV) manufacturer Canoo Inc. (GOEV:NASDAQ), which is engaged in the design, engineering, development and manufacture of lifestyle and multi-purpose delivery vehicles and pickups, today announced that it entered into a definitive agreement with retail and e-commerce giant Walmart Inc. for the purchase of up to 10,000 Lifestyle Delivery Vehicle (LDVs).
The initial order placed by Walmart is for 4,500 of the company's all-electric LDVs that it plans to deploy to support its expanding e-commerce business. The agreement provides Walmart with the option of purchasing up to 10,000 units for the intended purpose of making last mile deliveries.
Canoo is planning to launch its LDV line in 2023 but will be working on finalizing desired vehicle configurations for advanced shipments in the upcoming weeks.
The firm noted that its fully electric commercial LDV is made in the U.S. and is designed with economic, safe and sustainable last mile delivery uses in mind. The vehicles are engineered specifically to offer a customized cargo space and delivery optimized cabin. The company pointed out that in its design it uses true steer by wire technology, which reduces the number of moving parts and limits cabin intrusion. As a result, the vehicles have more usable interior space, offer improved ergonomics for drivers and come with a panoramic window to improve visibility while driving.
The company said that its LDVs are built for frequent stops and starts and speedy vehicle to door drop-off deliveries. The vehicles offer 120 cubic ft. of cargo space and are engineered to economically meet the unique needs associated with small package deliveries.
Canoo's Chairman, CEO and Investor Tony Aquila commented, "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."
"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," Aquila added.
The firm advised that Walmart is purchasing the vehicles to use for fulfilling online delivery orders for groceries and general merchandise and possibly for its GoLocal delivery-as-a-service business as well.
Walmart U.S.' SVP of Innovation and Automation David Guggina remarked, "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…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 is headquartered in Torrance, Calif. and has operations and engineering teams in California, Texas, Michigan, Oklahoma and Arkansas. The firm claim that "it has designed a modular electric platform purpose-built to deliver maximum vehicle interior space that is customizable across all owners in the vehicle lifecycle to support a wide range of vehicle applications for consumers and businesses." Canoo indicated that it plans to commence production of its LDV line in Q4/22. According to the company's website prices for the new LDVs start at $34,750.
Walmart has a market cap of greater than $340 billion and operates more than 10,500 stores and membership clubs in 24 countries. The company has annual revenues of approximately $573 billion and serves around 230 million customers weekly thru its network of stores and its mobile and online eCommerce websites.
Canoo Inc. started off the day with a market cap of around $602.7 million with approximately 254.3 million shares outstanding and a short interest of about 13.3%. GOEV shares opened 96% higher today at $4.65 (+$2.28, +96.20%) over yesterday's $2.37 closing price. The stock has traded today between $3.675 and $5.00 per share and is currently trading at $3.725 (+$1.355, +57.17%).
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