Canoo stock jumps after Walmart agrees to buy 4,500 EV delivery vans

Electric vehicle startup Canoo announced Tuesday that Walmart has agreed to buy at least 4,500 of its upcoming electric delivery vans.

Shares of Canoo gained more than 50% following the news.

Walmart has signed a “definitive agreement” to purchase at least 4,500, and possibly as many as 10,000, of its all-electric Lifestyle Delivery Vehicles, a small electric van designed for local delivery service, Canoo said.

Walmart is leaning on stores to deliver online purchases quickly and at a lower costs — and compete with Amazon, an online rival known for its speed. It has rolled out and expanded e-commerce services, including InHome, which delivers groceries directly to customers’ fridges and Express Delivery, which drops purchases at shoppers’ doors in two hours or less.

But to expand those services, it needs more delivery vans. InHome is powered by an all-electric fleet.

Canoo marks the third major deal signed by Walmart for electric vans. Early this year, Walmart reserved 5,000 electric vans from General Motors subsidiary BrightDrop. It also bought 1,100 electric vans from Ford E-Transit, some of which it is already operating.