Walmart Inc (WMT.N) has agreed to acquire 4,500 electric cars from Canoo Inc (GOEV.O) as part of the U.S. retailer’s objective of reaching net-zero emissions by 2040.

Canoo shares rose almost 37% in pre-market trading after Walmart said on Tuesday that it has an option to acquire up to 10,000 units as it electrifies its delivery fleet.

The deal’s financial specifics were not revealed.

Walmart said in June that it was extending transportation trials with electric, hydrogen, and natural gas-powered vehicle manufacturers such as Cummins Inc (CMI.N) and Daimler Trucks’ (DTGGe.DE) Freightliner.

In January, the store said that it has booked 5,000 electric delivery trucks from General Motors’ (GM.N) commercial EV division, BrightDrop.

As governments throughout the globe drive enterprises to reduce CO2 emissions, a great number of firms have pushed into the developing commercial EV industry.

FedEx Corp, Amazon.com Inc (AMZN.O), and United Parcel Service Inc (UPS.N) have all vowed to convert their enormous delivery fleets to EVs.

Canoo’s totally electric Lifestyle Delivery Vehicle is also included in the agreement announced on Tuesday (LDV). According to the announcement, the EV company expects to commence manufacturing of the LDVs in the fourth quarter of 2022.

Canoo CEO Tony Aquila said that the company intends to construct 14,000 to 17,000 automobiles in 2023. more info

“By continuing to expand our last mile delivery fleet in a sustainable way, we’re able to provide customers and Walmart+ members with even more access to same-day deliveries while keeping costs low,” said David Guggina, senior vice president of innovation and automation at Walmart U.S.

Source: Reuters

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