Why EV Maker Canoo's Stock Is Hitting Top Gear Today

Shares of Canoo, Inc. GOEV jumped over 30% in the premarket session on Tuesday after the electric vehicle manufacturer announced a deal to supply 4,500 units of its delivery vans to retail giant Walmart, Inc. WMT. The contract carries an option to supply up to 10,000 more units.

Canoo will begin the supply with its flagship lifestyle delivery vehicle or LDV.
Walmart intends to use the vehicles to deliver online orders and it sees the investment as a step toward achieving its zero-emission goal by 2040. The retailer plans to begin deploying the Canoo lifestyle vehicles in 2023.

The companies also said they plan to start refining and finalizing vehicle configuration in the Dallas Fort Worth metroplex in the coming weeks.

"We are proud to have been selected by Walmart, one of the most sophisticated buyers in the world, to provide our high-tech, all-electric, American made Lifestyle Delivery Vehicle to add to their impressive logistics capabilities," said Tony Aquila, CEO of Canoo.

Related Link: Acquiring This EV Maker Could Help Turn Apple's Car Visions Into Reality

The contract should bode well for Canoo, which earlier this year sounded out a going concern warning.

Rumors earlier suggested Apple, Inc. AAPL could be potentially interested in buying the company to further its self-driving technology ambitions.

Price Action: In premarket trading Tuesday, Canoo shares were adding 32.07% to $3.13, according to Benzinga Pro data.