On Walmart, Canoo and Electric Vehicles

Last week, a press release from retailer Walmart and EV developer Canoo said, “Walmart has signed a definitive agreement with Canoo, a high-tech advanced mobility company, to purchase 4,500 all-electric delivery vehicles, beginning with the Lifestyle Delivery Vehicle (LDV), with the option to purchase up to 10,000 units … expected to begin hitting the road in 2023 [with some LDVs] in the Dallas Fort Worth metroplex in the coming weeks."

Canoo demo video here

David Guggina, Walmart U.S. senior vice president of innovation, said "We're thrilled to continue diversifying our last mile delivery fleet with Canoo's unique and sustainably focused all-electric technology ..."

Tony Aquila, Canoo Chairman & CEO said, "Our LDV has the turning radius of a small passenger vehicle on a parking friendly, compact footprint, yet the payload and cargo space of a commercial delivery vehicle. This is the winning algorithm to seriously compete in the last mile delivery race, globally,"

Notes: Canoo was founded in 2017, is headquartered in Torrance, CA and its stock symbol is GOEV.

OUR TAKE

• The future of transportation will continue to evolve and, amid high profile offerings such as Tesla, Rivian and Ford F150 Lighting, there is a lot of room for innovators such as Canoo.

• While critical EV components for Canoo include its electric drivetrain, battery system, and vehicle control electronics, it will be important for Canoo to develop its software platform to manage innovative on-board services and address changing customer needs.

• Investor risks associated with Canoo include 1) it is an early-stage company, 2) the business model requires significant capital, and 3) the electric vehicle market will become increasingly competitive.