Breaking News
Get 40% Off 0
Is NVDA a 🟢 buy or 🔴 sell? Unlock Now

Walmart to electrify its delivery fleet with Canoo EVs

Published Jul 12, 2022 06:11AM ET Updated Jul 12, 2022 12:06PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The logo of a Walmart Superstore is seen in Rosemead, California, U.S., June 11, 2020. REUTERS/Mario Anzuoni/
 
GM
+0.65%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
FDX
-0.39%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
AMZN
-0.01%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
WMT
+0.23%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
UPS
-0.38%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CMI
+0.17%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Akash Sriram

(Reuters) -Walmart Inc has struck a deal with Canoo Inc to buy 4,500 electric vehicles as part of the U.S. retailer's goal to achieve net-zero emissions by 2040, the companies said on Tuesday.

The deal, whose financial terms were not disclosed, also gives Walmart (NYSE:WMT) an option to purchase up to 10,000 units as it electrifies its delivery fleet.

Canoo shares more than doubled in early trading, with the news sparking interest in the company among retail investors and making it one of the most discussed stocks on trading forum Stocktwits.

The movement is strictly retail buying as shorts are not expecting the deal to reduce cash burn or anticipated funding needs, said Roth Capital analyst Craig Irwin.

"This order was already somewhat anticipated, but it is a nice get. It will be exciting to see those vehicles rolling in the DFW (Dallas Fort Worth) area," Irwin added.

Short interest in Canoo stood at nearly 13% of outstanding shares, research firm S3 Partners said, adding the jump has reduced mark-to-market profit for the shorts by $58 million to around $100 million.

The stock has lost nearly 70% of its value this year, as of last close, amid the selloff in tech stocks and concerns around Canoo's access to capital.

The deal comes as companies including FedEx Corp (NYSE:FDX), Amazon.com Inc (NASDAQ:AMZN) and United Parcel Service Inc (NYSE:UPS) pledge to shift their delivery fleets to EVs.

The Canoo-Walmart agreement also includes the EV startup's fully electric Lifestyle Delivery Vehicle (LDV). Canoo expects to start production of the LDVs in the fourth quarter of 2022, according to the statement.

In June, Walmart said it was expanding transportation pilots with the manufacturers of electric, hydrogen and natural gas-powered vehicles, including Cummins Inc (NYSE:CMI) and Daimler (OTC:DDAIF) Truck's Freightliner.

The retailer has reserved 5,000 electric delivery vans with General Motors (NYSE:GM)' commercial EV business, BrightDrop.

Walmart to electrify its delivery fleet with Canoo EVs
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email