Canoo Inc. (GOEV) stock jumps 79% on Walmart’s order for 4,500 EVs

Highlights:

• Torrance, California-based Canoo Inc. (NASDAQ: GOEV) designs and manufactures electric vehicles (EVs).
• Today, it announced a definitive agreement with Walmart Inc. (WMT) where Walmart will purchase 4,500 all-electric delivery vehicles from Canoo with an option to purchase up to 10,000 units. 
• GOEV stock plummeted 70.78% YTD and 73.98% in one year.

Canoo Inc. (NASDAQ: GOEV) stock soared 78.52% to US$4.231 on Tuesday morning after it announced a definitive agreement with Walmart (WMT) where Walmart will purchase 4,500 all-electric delivery vehicles with the option to purchase up to 10,000 units. 

Torrance, California-based Canoo Inc. designs and manufactures electric vehicles (EVs) for commercial and consumer markets. Its product pipeline includes Electric delivery vehicles, Lifestyle delivery vehicles, and Sports vehicles.

The retailer company will begin the purchase with Canoo’s Lifestyle Delivery Vehicle (LDV), which is expected to hit the road in 2023. Walmart will be the first to receive the LDVs. 

Walmart will use these fully electric LDVs to deliver online orders. The EV utilization for online delivery will help it achieve the zero-emission goal by 2022. 

Meanwhile, Canoo plans to start advance deliveries to discover any refining requirements and finalize vehicle configuration in the next few weeks.

These EVs are built on proprietary multi-purpose platform (MPP) architecture and will be used for last-mile delivery. These vehicles are optimized for high-frequency door-to-door deliveries, including grocery, meals, etc. Their interior is designed to suit small package delivery at a competitive cost. 

Walmart associates will be driving these LDVs to deliver online orders as well as for delivery-as-a-service business. 

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Financials:

Canoo has a market capitalization of US$1.09 billion. The stock price moved to its highest price of US$13.35 and the lowest of US$1.75 in the last 52 weeks.  

The EV company had reported ‘nil’ revenue for the quarter ended March 31, 2022, and incurred a net loss of US$125 million, or US$0.54 per share diluted, compared to the net loss of US$15.22 million or US$0.07 per share diluted in the year-ago quarter. 

The company brought its IPO in 2019. Its stock plummeted 70.78% YTD and 73.98% in one year at the closing price of US$2.37 on July 11, 2022. 

Bottom line:

Tony Aquila, Investor, Chairman and CEO of Canoo, said that the rising gas prices present an opportunity for the growing demand for electric vehicles. He added that with this agreement with Walmart, Canoo is likely to get the strategic advantage of Walmart’s massive presence in the market.