walmart announced that it had agreed to purchase 4,500 all-electric delivery vehicles from electric vehicle (EV) company Canoo on July 12, sending the the stock is skyrocketing.

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Shares of Canoo closed up 53% after the announcement and were flat on Wednesday morning. The Wall Street Journal reports that the announcement sent Canoo shares up nearly 80% to $4.25 per share on July 12, and that the stock, at one point that day, had more than doubled to $5 per share. However, the stock is still down around 55% since the start of the year.

Walmart – which has the option to purchase up to 10,000 electric vehicles – said the vehicles will be used to deliver online orders “in a sustainable way, which will also contribute to Walmart’s goal of achieving zero emissions. by 2040,” according to a press release. .

The company, which relocated its headquarters to Walmart’s hometown of Bentonville, Arkansas, plans to start using electric vehicles in 2023, but will begin advanced deliveries to refine and finalize the vehicle configuration in the metroplex. from Dallas-Fort Worth 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 supply our high-tech, all-electric, American-made lifestyle delivery vehicle to add to their impressive logistical capabilities,” said Tony Aquila, investor, president and CEO of Canoo. “Our VLD [Lifestyle Delivery Vehicle] has the turning radius of a small passenger vehicle on a compact, parking-friendly footprint, but the payload and cargo space of a commercial delivery vehicle. It is the winning algorithm to seriously compete in the last mile delivery race, globally.

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Walmart’s announcement is a boon to Canoo’s outlook compared to other recent events. Barron’s reports that as it entered trading on July 12, Canoo stock is down 69% this year and about 90% from its all-time high of nearly $25 per 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 report that there is substantial doubt about the company’s ability to continue its operation. “, according to a statement on the financial results.

On the other hand, in April, NASA selected Canoo to provide Crew Transport Vehicles (CTVs) for crewed Artemis lunar exploration launches, which will provide several custom all-electric LV models to NASA from by June 2023, according to a press release.

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Canoo shares jumped after Walmart ordered 4,500 electric delivery vehicles

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