Canoo stock soared on Thursday after the electric vehicle maker announced a deal to sell delivery vans to Walmart with the option to purchase up to 10,000.
Shortly after the opening bell, the stock surged by as much as 107%), before paring some of the gains to trade at around $4.75 per share.
Walmart is buying the company's lifestyle delivery vehicle, which is an electric car. The purchase will allow the retail chain to fulfill online orders while making progress on its goal to eliminate carbon emissions by the year 2040.
Canoo Chairman and Chief Executive Tony Aquila is proud to have been selected by Walmart. Walmart's massive store footprint provides a strategic advantage in today's growing "Need it now" mindset and an unparalleled opportunity for growing EV demand, especially at today's gas prices.
Canoo's stock has been on a decline since peaking in November 2020, when the company went public and announced plans to accelerate its production timelines in the US
Canoo has not sold its cars to the public. Aquila said that it was constrained by the chip shortage and higher costs. Canoo had a net loss of $346 million last year, up from $867 million in 2020.
Canoo's vehicles will be the first of their kind to hit the road, and will be used by Walmart in 2023. The production of the vehicles will start at the end of the year.
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