This EV-Based Small Cap Has Partnerships With Walmart, NASA And The U.S. Postal Service – Is It On Your Radar?
Detroit, Michigan
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September 12, 2024 09:00 AM Eastern Daylight Time
By Meg Flippin, Benzinga
Canoo Inc. (NASDAQ: GOEV), a high-tech advanced mobility company bringing electric vehicles – namely lifestyle delivery vehicles – to commercial operators, seems to have made strides in its quest to create a state-of-the-art EV commercial fleet. The company has inked deals with some of the biggest names in the U.S., including Walmart Inc. (NYSE: WMT), the U.S. Postal Service, the Department of Defense and even NASA.
So what makes these large industry players and government agencies want to partner with a relatively unknown brand? After all, Canoo doesn’t have the name recognition of Tesla Inc. (NASDAQ: TSLA). However, it does have scalable technology, which it says sets it apart.
EV Is Here to Stay
Over the long haul, electric fleets for commercial and government customers have a lower total cost of ownership and don’t require costly fuel. But Canoo says it takes it a step further by using one-third the parts of traditional internal combustion engines (ICEs). The maintenance schedule is almost an afterthought thanks to its advanced computer architecture, which in most cases, can remotely diagnose and repair its EVs via over-the-air (OTA) software. The company also offers a warranty that covers up to eight years, something not common in the auto industry.
Canoo is going after the last-mile delivery market with its fully electric Lifestyle Delivery Vehicles (LDV). The LDVs have a last-mile delivery optimized cabin and customized cargo space. Last-mile delivery refers to the very last step of the delivery process when a parcel is moved from one location to another. Canoo reports that it utilizes true steer-by-wire technology, reducing moving parts and cabin intrusion – resulting in more usable interior space, better driver ergonomics and the addition of a panoramic window to improve road visibility. The LDV is engineered for high-frequency stop-and-go deliveries and speedy vehicle-to-door drop-off, including grocery and food/meal delivery, says Canoo.
Walmart Is In
All those attributes are part of what led Walmart to select Canoo as its EV fleet provider. Walmart inked a deal to purchase 4,500 all-electric delivery vehicles from Canoo, beginning with the LDV. The retailer has the option to purchase up to 10,000 units. The vehicles are to be used to deliver online orders in a sustainable way which will also contribute to Walmart’s goal to achieve zero emissions by 2040, the companies said when originally announcing the deal. Canoo is headquartered in Justin, TX, and operates manufacturing sites in Oklahoma.
While that is Canoo’s biggest order to date, the company is also making inroads with the U.S. government, inking deals with NASA, the Department of Defense and the U.S. Postal Service. All have the potential to expand into something more.
Take the U.S. Post Office deal for starters. The postal service agreed to buy six right-hand drive versions of the LDV 190 as part of its move to electrify and modernize the postal service’s delivery fleet. Canoo delivered the vehicles this May, and the USPS is using them on mail routes.
Additionally, the USPS is investing $40 billion to upgrade and improve the organization's processing, transportation and delivery networks. If it likes what it sees from Canoo, that could mean more purchases down the road. Meanwhile, NASA had also purchased three Crew Transportation Vehicles (CTVs) to transport the astronauts to the launch pad for the Artemis lunar missions. The CTVs are engineered to carry fully suited astronauts, flight support crew and equipment to the launch pad. “We are thrilled to be a part of the Artemis missions and to deliver NASA’s first zero-emission built for mission crew transportation vehicles,” said Tony Aquila, Chairman and CEO of Canoo. “It’s a very proud day for Canoo and all of our partners who worked so hard to ensure we perform our part to transport the astronauts for the first nine miles of every launch.”
Beyond LDVs
Beyond electric vehicles, Canoo is busy supplying batteries to the Department of Defense, expanding a deal with the U.S. Navy. Canoo’s proprietary battery system is modular and can support various military applications and configurations. The batteries harbor 5kWh modules that utilize 2170 cylindrical cells, but can fit other form factors and cell chemistries. The company says the expansion of the partnership further validates its technology and reliability. It is also delivering the Light Tactical Vehicle (LTV) to the U.S. Army.
From fully electric vehicles that can transport cargo, goods and people to batteries powered by wind and solar, Canoo is doing its part for a greener tomorrow. It may not be a household name yet, but with some big-name players as partners, it's one investors may want to keep an eye on.
Keep a look out for more Canoo Inc. announcements here.
Featured photo courtesy of Canoo.
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