Canoo Wins $67K Army Contract

Canoo Wins $67K Army Contract

Canoo Inc., which is moving its headquarters and an electric vehicle production facility to Bentonville, has been awarded a U.S. Army contract worth $67,500 to supply an electric vehicle for analysis and demonstration.

The company said Thursday that this contract supports the U.S. military’s efforts to incorporate scalable and adaptable capabilities in operational and garrison environments.

Chairman and CEO Tony Aquila, who is also an investor, said in a news release, “This is another opportunity to prove our proprietary technology – which is customizable and adaptable for multiple use cases and special environments.”

Shares of Canoo (Nasdaq: GOEV) were up more than 13% midday Thursday.

The announcement follows this week's news that Walmart Inc. of Bentonville will buy 4,500 electric vehicles from Canoo to be used for final mile deliveries and the startup being selected by NASA to provide vehicles to take astronauts to the Artemis launch site for lunar missions.

It also comes after Canoo reported widening losses and dwindling cash in the first quarter of 2022. The company ended the period with just $104.9 million in unrestricted cash and cash equivalents, raising doubts about its future. Canoo said at the time that it had more than $600 million in accessible capital.

The company reported in May that it had reached 17,500 vehicle pre-orders with a projected value of $750 million.