UPDATE: Canoo shares soar premarket after Walmart orders 4,500 electric delivery vehicles plus option for up to 10,000 more

Walmart Inc.
WMT,
-0.30%
said Tuesday it is purchasing 4,500 all-electric delivery vehicles from Canoo Inc.
GOEV,
+53.16%
for use in last-mile delivery. The news sent shares of Canoo up 67% in premarket trade. Walmart is also purchasing an option for up to 10,000 more units, as part of its goal of zero-emissions by 2040. No financial terms were disclosed. Canoo is expecting to start production in the fourth quarter. “The LDV is engineered for high frequency stop-and-go deliveries and speedy vehicle to door drop-off, including grocery and food/meal delivery,” the companies said in a statement. The vehicles will be driven by Walmart associates and used for online orders, including groceries and general merchandise and may become part of Walmart GoLocal, a deliver-as-a-service business. Canoo shares have fallen 69% in the year to date, while the S&P 500
SPX,
-0.92%
has fallen 19%.