Canoo Shares Double After Deal With Walmart
July 12 2022 - 10:14AM
Dow Jones News
By Will Feuer
Shares of Canoo Inc. more than doubled in morning trading after
the electric car maker said it has signed a purchase agreement with
retailer Walmart Inc. for at least 4,500 of its electric delivery
vehicles.
Through the agreement, Walmart will purchase 4,500 of Canoo's
all-electric delivery vehicles, called the Lifestyle Delivery
Vehicle, with the option to purchase up to 10,000 units, the
companies said. Walmart will use the vehicles to fulfill online
orders to help reach zero-emissions by 2040, the companies
said.
The delivery vehicle is expected to begin hitting the road in
2023, but the companies plan to kick-off advanced deliveries to
refine vehicle configuration in the Dallas Fort Worth metroplex in
the coming weeks, they said. The companies didn't place a dollar
figure on the deal or say when Canoo, which has flagged liquidity
concerns, would receive payment.
Shares of Canoo spiked to $4.94 a share in morning trading
following news of the deal from a previous close of $2.37. The
stock is still down about 36% so far this year.
The embattled electric car startup was among a wave of companies
that went public by merging with special-purpose acquisition
companies during the pandemic. Many of those companies have since
seen their stocks fall sharply as reality confronts lofty
projections. Others, including Canoo, have issued so-called
going-concern warnings, which come when a company's auditor
determines there is substantial doubt about its ability to stay
afloat for the next 12 months.
Write to Will Feuer at Will.Feuer@wsj.com
(END) Dow Jones Newswires
July 12, 2022 09:59 ET (13:59 GMT)
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