14 Jul 2022
Walmart buy 4500 EV's
On Tuesday the 12th July, Walmart signed an agreement with Canoo to purchase 4,500 electric vehicles from the startup-turned-SPAC. This comes after Canoo warned last quarter that it may no longer have the funds to stay in business.
Despite the financial terms of the agreement not being shared, a spokesperson from Canoo did disclose that these are binding pre-orders, and under the terms, Walmart has the option to buy a further 5,500 of Canoo’s ‘Lifestyle Delivery Vehicle’.
Following this announcement, Canoo’s shared resultantly surged on the market, as the stock price increased 76% to $4.17 as of 11am ET.
Initially, Walmart plans to utilise these vehicles in the Dallas Fort-Worth metro area. They will first make use of some pre-production EVs to deliver online orders, allowing Canoo to subsequently use this as a test bed to refine and finalise configurations in the coming weeks.
Canoo hopes to start predict on their LDV in the final of the quarter of this year, pushing them out onto roads in 2023.
Chairman and CEO of Canoo, stated that the vehicles are designed specifically the with ergonomics at the forefront. They have been kept spacious, providing 120 cubic feet of room for various cargo. Moreover, they are considerably less expensive than similar models available due a steer by wire technology which reduces the number of moving parts and cabin intrusion.
Canoo is yet another investment in Walmart’s increasingly complex eco-system. They have certainly in the past leveraged independent contractors, with the retail giant also working with drone delivery start-ups Zipline, and DroneUp. Resultantly, Walmart now gloats that it can reach 80% of the US population with same-day delivery on a growing variety of different items.
This deal comes roughly 8 months after Canoo announced its plans to situate both its headquarters and manufacturing facility in Bentonville, Arkansas.
This decision was not an accident, for Bentonville is a town most famously connected to Walmart with the company having a history of investing in suppliers and vendors in the area.
David Guggina, senior vice president of innovation and automation at Walmart made clear the company is “encouraged that by being located in close proximity to the Canoo headquarters, we have the advantage to collaborate and innovate in real-time as well as the opportunity to aid in the creation of manufacturing and technology jobs here in our home state of Arkansas.”