Canoo will use contractors to build the first batch of electric vans for Walmart customers and shareholders, said Canoo CEO Tony Aquila during the Q2 financial results call
The company will use an unspecified contractor for the initial output of its debut EV by the end of the year.
Canoo previously said it would assemble its own electric vehicles at a production facility in Bentonville, Arkansas, where Walmart is headquartered.
The company is currently working to build a dedicated factory in Pryor, Oklahoma. Previously Canoo received an unexpected order from Walmart for at least 4,500 electric vans, with the option to purchase up to 10,000. Aquila said deliveries of electric vans to Walmart are on track to begin in the first quarter of 2023.
“We have entered into an agreement with Walmart Inc. for the purchase of electric vehicles and expect that, at least initially, Walmart Inc. will be our largest customer. If we are unable to maintain this relationship, or if Walmart purchases significantly fewer vehicles than we currently anticipate or none at all, our business, prospects, financial condition, results of operations, and cash flows could be materially and adversely affected.” says Canoo CEO Tony Aquila
The EV maker posted a net loss of $164.4 million in the second quarter and $289.8 million in the first half of the year, compared with $112.6 million and $127.8 million in the same period last year.
Canoo claims to have ended the quarter with more than $1 billion, largely due to the Walmart deal. While only 17 percent of the 32,500 reservations were committed to sales under a contract, the rest were non-binding and refundable.
Canoo closed the quarter with $33.8 million in cash and cash, which is very low for an electric vehicle manufacturer. However, Canoo claims to have approximately $220 million of unused capacity on its Standby Equity Purchase Agreement (SEPA) facility that was filed with the SEC in May.
Walmart to purchase 4,500 Canoo EVs to electrify deliveries fleets
