By Will Feuer

Shares of Canoo Inc. more than doubled in morning trading after the electric car maker said it has signed a purchase agreement with retailer Walmart Inc. for at least 4,500 of its electric delivery vehicles.

Through the agreement, Walmart will purchase 4,500 of Canoo's all-electric delivery vehicles, called the Lifestyle Delivery Vehicle, with the option to purchase up to 10,000 units, the companies said. Walmart will use the vehicles to fulfill online orders to help reach zero-emissions by 2040, the companies said.

The delivery vehicle is expected to begin hitting the road in 2023, but the companies plan to kick-off advanced deliveries to refine vehicle configuration in the Dallas Fort Worth metroplex in the coming weeks, they said. The companies didn't place a dollar figure on the deal or say when Canoo, which has flagged liquidity concerns, would receive payment.

Shares of Canoo spiked to $4.94 a share in morning trading following news of the deal from a previous close of $2.37. The stock is still down about 36% so far this year.

The embattled electric car startup was among a wave of companies that went public by merging with special-purpose acquisition companies during the pandemic. Many of those companies have since seen their stocks fall sharply as reality confronts lofty projections. Others, including Canoo, have issued so-called going-concern warnings, which come when a company's auditor determines there is substantial doubt about its ability to stay afloat for the next 12 months.

Write to Will Feuer at Will.Feuer@wsj.com

(END) Dow Jones Newswires

July 12, 2022 09:59 ET (13:59 GMT)

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