Retail giant Walmart and fledgling EV maker Canoo have shaken hands on a deal that will see the former acquire 4,500 electric local-delivery vans from the latter. For Walmart, it's another step toward its goal of reducing emissions to zero by 2040.
The agreement also includes the possibility of adding 10,000 units later.
For Canoo, which has struggled financially since its initial announcements, this is great news.
Walmart’s order is for the LDV (Lifestyle Delivery Vehicles) model, which is a modified version of the LV (Lifestyle Vehicle) that was the company’s first product. The LV is a people mover and can accommodate up to seven occupants, but the LDV version has the seats removed to create cargo space. It gets an 80-kWh battery, which allows it to offer a range of around 400 km. Load capacity is 1,464 lb, or 664 kg.
Walmart is the first company to receive the LDV, which it plans to deploy at distribution centres to carry out “last mile” local deliveries of packages ordered online to customers.
Canoo says the first vehicles will hit the road in 2023. However, some models will be tested in the Dallas/Fort Worth area over the next few weeks so that their performance can be evaluated.
The news has not surprisingly boosted Canoo's stock, lifting it from $2.37 to $4.65. It had started its run at $22.75 in December 2020, it should be remembered.
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