Walmart buying 4,500 electric vans from Arkansas startup Canoo
Bentonville-based company will build the vans in Oklahoma
Check out what's clicking on FoxBusiness.com.
Walmart is keeping things close to home.
The retail giant has ordered 4,500 electric delivery vans from startup Canoo, which last November announced it was moving its main office to Bentonville, Arkansas, near Walmart's headquarters.
The Canoo Lifestyle Vehicle Walmart will be using is a minivan-sized panel van with an advertised range of 250 miles per charge and a retail price of $34,750.
The vehicles will be manufactured in a new facility being built in Pryor, Oklahoma. Canoo stock more than doubled in early Tuesday trading on the news.
The Canoo Lifestyle Vehicle van will be used as a Walmart delivery vehicle. (Walmart)
During its first quarter earnings call, the company warned investors that there were doubts it could continue as a "going concern" amid low cash reserves, which the Walmart order will help alleviate.
WALMART, FEDEX SIGN DEALS FOR GM'S BRIGHTDROP ELECTRIC VANS
The Lifestyle Vehicle features a unique rectangular steering wheel. (Canoo)
Canoo will work with Walmart to specifically tailor the vehicle to its last-mile delivery needs and expects to have them in operation in 2023. Walmart has the option to increase the order to 10,000 vehicles.
The Lifestyle Vehicle has a cargo capacity of 120 cubic feet. (Canoo)
Walmart is in the process of electrifying its delivery fleet and has also ordered 5,000 larger vans from General Motors' new electric delivery truck division Brightdrop.
CANOO TESTING NEW NASA CREW TRANSPORT VEHICLES
A seven-seat passenger version of the Canoon Lifestyle Vehicle is available, and the first deliveries are currently scheduled to begin late this year.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Canoo is also developing the van as a crew transport vehicle for NASA's Artemis Moon mission as part of a contract with the space agency Canoo won in April.