In other EV news, Walmart (WMT) has agreed to buy between 4,500 to 10,000 delivery vans from the EV maker Canoo (GOEV). And Canoo stock is up 80% on this announcement.
So, what makes Canoo different from other EV companies? Its state-of-the-art technology is unlike anything else in the game. Its proprietary multi-purpose platform (MPP) removes all wasted space in its vehicles and pushes everything to the edges, near the exterior of the vehicle.
Instead of bulky gears and steering mechanisms that take up space in the front of traditional vehicles, Canoo simply has a wire to connect the steering wheel to your foot. This allows the driver’s seat to go all the way to the front of the vehicle and makes room for the trunk to be all the way in the back.
This completely maximizes interior space, and you can fit way more into Canoo’s EVs than its competitors’. This is a great value prop, especially for delivery vans with tons of cargo. Not to mention large families who need lots of room.
And that’s why Walmart chose these vans for its fleet. They maximize space inside the vehicle, and they’re also smaller in general. So, they minimize transit time and cost, and they take up less space at distribution centers.
Canoo also offers a pickup truck with the same space-maximizing technology. Usually, a truck’s size is correlated to the bed size – the bigger the truck, the bigger the bed. This isn’t the case for Canoo.
Its truck isn’t bigger than its competitors’ – but it has way more bed space.
So, when it comes to Canoo, the only problem is liquidity. Currently, its burn rate is equal to its cash balance. Once it can prove its manufacturing ability and use its capital to bridge a cash-positive balance sheet, it’ll be smooth sailing. And Canoo stock will rocket.
The Walmart deal will go a long way in helping the company to reach that goal. So, Canoo’s future looks bright right now.
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On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.