Walmart is keeping things close to home.
The retail giant has ordered 4,500 electric delivery vans from startup Canoo, which last November announced it was moving its main office to Bentonville, Arkansas, near Walmart's headquarters.
The Canoo Lifestyle Vehicle Walmart will be using is a minivan-sized panel van with an advertised range of 250 miles per charge and a retail price of $34,750.
The vehicles will be manufactured in a new facility being built in Pryor, Oklahoma. Canoo stock more than doubled in early Tuesday trading on the news.
During its first quarter earnings call, the company warned investors that there were doubts it could continue as a "going concern" amid low cash reserves, which the Walmart order will help alleviate.
Canoo will work with Walmart to specifically tailor the vehicle to its last-mile delivery needs and expects to have them in operation in 2023. Walmart has the option to increase the order to 10,000 vehicles.
Walmart is in the process of electrifying its delivery fleet and has also ordered 5,000 larger vans from General Motors' new electric delivery truck division Brightdrop.
A seven-seat passenger version of the Canoon Lifestyle Vehicle is available, and the first deliveries are currently scheduled to begin late this year.
Canoo is also developing the van as a crew transport vehicle for NASA's Artemis Moon mission as part of a contract with the space agency Canoo won in April.