UPDATE: Canoo shares soar premarket after Walmart orders 4,500 electric delivery vehicles plus option for up to 10,000 more

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Walmart Inc. WMT, +0.22% said Tuesday it is purchasing 4,500 all-electric delivery vehicles from Canoo Inc. GOEV, +104.85% for use in last-mile delivery. The news sent shares of Canoo up 67% in premarket trade. Walmart is also purchasing an option for up to 10,000 more units, as part of its goal of zero-emissions by 2040. No financial terms were disclosed. Canoo is expecting to start production in the fourth quarter. “The LDV is engineered for high frequency stop-and-go deliveries and speedy vehicle to door drop-off, including grocery and food/meal delivery,” the companies said in a statement. The vehicles will be driven by Walmart associates and used for online orders, including groceries and general merchandise and may become part of Walmart GoLocal, a deliver-as-a-service business. Canoo shares have fallen 69% in the year to date, while the S&P 500 SPX, +0.40% has fallen 19%.

This article was originally published by Marketwatch.com. Read the original article here.

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