Shares of Canoo were up more than 70% in premarket trading after the news was announced to trade above $4 per share.
Walmart has signed a “definitive agreement” to purchase at least 4,500, and possibly as many as 10,000, of its all-electric Lifestyle Delivery Vehicles, a small electric van designed for local delivery service, Canoo said.
The big-box retailer plans to use the vans for local deliveries of items ordered online. The vans will be built at Canoo’s facility near Dallas and are expected to go into service next year.
Terms of the deal were not disclosed.