Canoo stock soared as the embattled startup joined General Motors and Ford in building out Walmart's EV delivery fleet.
The Dow Jones retail giant signed a "definitive agreement" with Canoo to purchase at least 4,500, and perhaps as many as 10,000, electric delivery vans for last-mile deliveries, Canoo said in a release Tuesday.
Canoo will start producing its fully electric vans in the fourth quarter of 2022. Those EVs are likely to begin handling Walmart deliveries in 2023. Financial terms were not disclosed.
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Both Canoo and Walmart are headquartered in Bentonville, Ark.
Electric Vans For Last-Mile Deliveries
In January, Walmart said it will buy 5,500 EV delivery vans from BrightDrop, the General Motors EV spinoff. It's also buying 1,000 electric vans from Ford. Meanwhile, Amazon struck deals for electric vans with Rivian, another EV startup, and Stellantis.
Electric delivery vans are a major market opportunity. They tap two big trends: vehicle electrification and the online sales boom. And last-mile deliveries are also a prime target for EV makers, with relatively short out-and-back type deliveries that permit short ranges and periodic recharge opportunities.
Canoo Stock Regains Key Level
Shares of Canoo rocketed 53% to 3.63 in big volume on the stock market today, but closed near session lows. That surge — from very low levels — was enough to put Canoo stock back above its falling 50-day moving average for the first time since April. The EV stock remains far below the December 2020 high of 24.90.
The relative strength line for GOEV stock is lagging, a sign of underperformance vs. the S&P 500.
Walmart fell 0.3% Tuesday. Amazon shed 2.3%.
Rivian gained 0.7%. GM, Ford and Stellantis also advanced Tuesday, but they all remain near 2022 lows.
GOEV Stock Ups And Downs
In May, Canoo warned investors it was running low on funds. Then unconfirmed reports resurfaced that Apple may look to acquire the struggling startup for its own rumored Apple Car project.
Canoo stock was part of a wave of EV startups that came public in the last 2-3 years via reverse mergers with special purpose acquisition companies, or SPACs.
New, highly speculative EV stocks have cooled rapidly since then. The chip shortage and other supply disruptions left even the established auto giants stuck with partially built vehicles. And EV startups struggled to deliver on big promises.
