Canoo Inc (NASDAQ:GOEV) shares closed up 53% on Tuesday following the news that the Arkansas-based electric vehicle (EV) maker has partnered with Walmart Inc (NYSE:WMT) to power the retail giant’s delivery fleet.
Per the agreement, Walmart is set to purchase 4,500 Canoo EVs to be used for last-mile deliveries, with the option to purchase up to 10,000 units.
According to Canoo, the retailer will become the first to receive the company’s Lifestyle Delivery Vehicle (LDV) which is expected to hit the road for Walmart deliveries in 2023.
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The vehicles will be driven by Walmart associates and used to deliver online orders, from groceries to general merchandise. They may also be used for Walmart GoLocal, the retailer’s delivery-as-a-service business.
Canoo CEO Tony Aquila said the company was proud to have been selected by Walmart to provide its high-tech, all-electric, American-made LDV to add to the retailer’s impressive logistical 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,” he said in a statement. “This is the winning algorithm to seriously compete in the last mile delivery race, globally.”
After surging about 110% to $4.94 per share shortly after the open, Canoo closed out the day at $3.63 per share.
Contact the author Emily Jarvie at emily.jarvie@proactiveinvestors.com
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