Walmart announced it agreed to buy 4,500 all-electric delivery vehicles from electric vehicle (EV) company Canoo on July 12, sending the stock skyrocketing.
See Our List: 100 Most Influential Money Experts
Small Business Spotlight 2022: Nominate Your Favorite Small Biz by July 25
Shares of Canoo closed up 53% following the announcement and have remained stable as of Wednesday morning. The Wall Street Journal reports that the announcement sent shares of Canoo soaring nearly 80% to $4.25 a share on July 12, and the stock, at one point that day, more than doubled to $5 a share. The stock is still down around 55% year-to-date, however.
Walmart — which has the option to purchase up to 10,000 EVs — said that the vehicles will be used to deliver online orders “in a sustainable way which will also contribute to Walmart’s goal to achieve zero-emissions by 2040,” according to a press release.
The company, which moved its headquarters to Walmart’s hometown of Bentonville, Arkansas, plans to start using the EVs in 2023 but will begin advanced deliveries to refine and finalize vehicle configuration in the Dallas-Fort Worth metroplex in the coming weeks, according to the release.
“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,” said Tony Aquila, investor, chairman and CEO of Canoo. “Our LDV [Lifestyle Delivery Vehicle] 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.”
Check Out: 6 Alternative Investments To Consider for Diversification in 2022
The Walmart announcement is a boon to Canoo’s outlook compared to other recent happenings. Barron’s reports that coming into July 12 trading, Canoo stock was down 69% this year and down about 90% from its all-time high of almost $25 a share.
In May, the company said that “due to the timing of our announced funding, and the 2014 FASB accounting rule, as of the date of this announcement, we are reporting that there is substantial doubt about the Company’s ability to continue as a going concern,” according to a financial earnings release.
On the flipside, in April, NASA selected Canoo to provide Crew Transportation Vehicles (CTVs) for crewed Artemis lunar exploration launches, which will deliver multiple customized all-electric LV models to NASA by June 2023, according to a press release.
More From GOBankingRates
This article originally appeared on
Canoo Shares Surged After Walmart Ordered 4,500 Electric Delivery Vehicles
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.