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Walmart commits to purchase 4,500 Canoo all-electric delivery vans

Walmart to Purchase 4,500 Canoo Electric Vehicles to be Used for Last Mile Deliveries in Support of Its Growing eCommerce Business (Credit: Canoo)

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Walmart announced today that it signed a definitive agreement with electric mobility company Canoo to purchase 4,500 all-electric delivery vehicles. The agreement outlines an option to purchase up to 10,000 units in the future, and deliveries are expected to start with the company’s Lifestyle Delivery Vehicle or LDV.

Walmart said the LDVs will be used to deliver online orders sustainably, contributing to the company’s overall goal to achieve zero emissions by 2040. The LDV is expected to be on the road by 2023, with initial advanced deliveries being used to “refine and finalize vehicle configuration in the Dallas Fort Worth metroplex in the coming weeks.”

Walmart to Purchase 4,500 Canoo Electric Vehicles to be Used for Last Mile Deliveries in Support of Its Growing eCommerce Business (Credit: Canoo)

The vehicles will be used by Walmart associates to deliver online grocery and general merchandise orders and could expand to the company’s Walmart GoLocal program.

“We’re thrilled to continue diversifying our last-mile delivery fleet with Canoo’s unique and sustainably focused all-electric technology, which will provide our associates with safe, ergonomic delivery vehicles,” Senior VP of Innovation and Automation for Walmart, David Guggina, said. “Today, the closest Walmart to customers is right in their pockets – it’s the Walmart app. 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.”

Canoo, on the other hand, is offering an optimized, sustainable, and commercial LDV design that is suitable for last-mile delivery use cases. “As with all Canoo vehicles, the LDV is built on a proprietary multi-purpose platform (MPP) architecture that integrates the motors, battery module, and other critical driving components,” Canoo describes in the press release.

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Canoo has four configurations of the LDV: Delivery, Base, Premium, and Adventure. The Delivery trim level packs 250 miles of range thanks to an 80 kWh battery pack and a 1,464-lb payload.

Reports of the deal with Walmart send Canoo stock soaring over 80 percent. At the time of writing, shares were trading at $4.28, up $1.91. Shares closed at $2.37 at the end of Monday’s trading session.


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“We are proud to have been selected by Walmart, one of the most sophisticated buyers in the world, to provide our high-tech, all-electric, American-made Lifestyle Delivery Vehicle to add to their impressive logistics capabilities,” CEO of Canoo, Tony Aquila, said. “Our LDV has the turning radius of a small passenger vehicle on a parking-friendly, compact footprint, yet the payload and cargo space of a commercial delivery vehicle. This is the winning algorithm to seriously compete in the last mile delivery race, globally.”

Optimized for high-frequency stop-and-go trips, the LDV is designed for a speedy dropoff of customer goods to keep deliveries going. The modular van packs 120 cubic feet of cargo volume and is adaptable to evolve with customer needs, contributing to a decreasing per unit investment over time.

Canoo said it anticipates its first LDV units to be delivered to Walmart in Q4 2022. Walmart has also ordered 1,100 E-Transit vans from Ford.

Disclosure: Joey Klender does not hold shares of Canoo or Walmart, and has no plans to initiate any positions within 72 hours.

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I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla pulls back the curtain on Cybercab mass production

Tesla’s Cybercab drives itself off the Gigafactory Texas line in a striking new production video.

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Tesla Cybercab production units rolling off the factory line in Gigafactory Texas (Credit: Tesla)

Tesla has provided a first look from inside a production Cybercab as it drove itself off the assembly line at Gigafactory Texas. The video footage, posted on X, opens on the factory floor with robotic arms and assembly equipment visible through the Cybercab windshield, and follows the car through a branded tunnel marked “Cybercab”, before autonomously navigating itself to a holding lot.

The first Cybercab rolled off the Giga Texas production line on February 17, 2026, with Musk writing on X, “Congratulations to the Tesla team on making the first production Cybercab.” April marked the official shift to volume production. The Giga Texas line is being prepared to produce hundreds of units per week, with 60 units already spotted on the Gigafactory campus earlier this month.


The Cybercab was first revealed publicly at Tesla’s “We, Robot” event in October 2024 at Warner Bros. Studios in Burbank, California, where 20 pre-production units gave attendees rides around the studio lot. Musk said he believed the average operating cost would be around $0.20 per mile, and that buyers would be able to purchase one for under $30,000. The two-seat design is deliberate. Musk noted that 90 percent of miles driven involve one or two people, making a compact two-passenger vehicle the most efficient configuration for a fleet-scale robotaxi. Eliminating rear seats also removes complexity and cost, supporting that sub-$30,000 target.

Tesla’s annual production goal is 2 million Cybercabs per year once several factories reach full design capacity. The Cybercab has no steering wheel, no pedals, and relies entirely on Tesla’s vision-based FSD system. What the video shows is the first evidence of that system working not as a demo, but as a production reality, driving itself off the line and into the world.

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Elon Musk talks Tesla Roadster’s future

Elon Musk confirmed the Roadster as Tesla’s last manually driven car, with a debut coming soon.

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Tesla Roadster driving along sunset cliff (Credit: Grok)

During Tesla’s Q1 2026 earnings call on April 22, Elon Musk made a brief but notable comment about the long-awaited next generation Roadster while describing Tesla’s future vehicle lineup. “Long term, the only manually driven car will be the new Tesla Roadster,” he said. “Speaking of which, we may be able to debut that in a month or so. It requires a lot of testing and validation before we can actually have a demo and not have something go wrong with the demo.”

That single statement is the entire Roadster update from yesterday’s call, and while it represents another timeline shift, it comes as no surprise with Tesla heads-down-at-work on the mass rollout of its Robotaxi service across US cities, and the industrial scale production of the humanoid Optimus.

The fact that Musk specifically framed the Roadster as the last manually driven Tesla is significant on its own. As the rest of the lineup moves toward full autonomy, the Roadster becomes something rare in the Tesla-sphere by keeping the driver in control. Driving enthusiasts who buy a $200,000 supercar are not doing so to be passengers. They want the physical connection to the road, the feel of acceleration under their own input, and the experience of controlling something with that level of performance. FSD, however capable it becomes, removes that entirely. The Roadster signals that Tesla understands this distinction and is building a car specifically for the people who consider driving itself the point.

Tesla isn’t joking about building Optimus at an industrial scale: Here we go

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The specs for the Roadster Musk has teased over the years are genuinely unlike anything in production. The base model targets 0 to 60 mph in 1.9 seconds, a top speed above 250 mph, and up to 620 miles of range from a 200 kWh battery. The optional SpaceX package takes it further, rumored to add roughly ten cold gas thrusters operating at 10,000 psi, borrowed directly from Falcon 9 rocket technology. With thrusters, Musk has claimed 0 to 60 mph in as little as 1.1 seconds. In a 2021 Joe Rogan interview he went further, stating “I want it to hover. We got to figure out how to make it hover without killing people.” Tesla filed a patent for ground effect technology in August 2025, suggesting the hover concept has not been abandoned. The starting price remains $200,000, with the Founders Series requiring a $250,000 full deposit. Some reservation holders placed those deposits in 2017 and are approaching a full decade of waiting.

With production now targeted for 2027 or 2028 at the earliest, the Roadster remains Tesla’s most audacious promise and its longest-running delay. But if what Musk is testing lives up to even half of what he has described, the demo alone should be worth waiting for.

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Tesla confirmed HW3 can’t do Unsupervised FSD but there’s more to the story

Tesla confirmed HW3 vehicles cannot run unsupervised FSD, replacing its free upgrade promise with a discounted trade-in.

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Tesla has officially confirmed that early vehicles with its Autopilot Hardware 3 (HW3) will not be capable of unsupervised Full Self-Driving, while extending a path forward for legacy owners through a discounted trade-in program. The announcement came by way of Elon Musk in today’s Tesla Q1 2026 earnings call.

The history here matters. HW3 launched in April 2019, and Tesla sold Full Self-Driving packages to owners on the understanding that the hardware was sufficient for full autonomy. Some owners paid between $8,000 and $15,000 for FSD during that period. For years, as FSD’s AI models grew more demanding, HW3 vehicles fell progressively further behind, eventually landing on FSD v12.6 in January 2025 while AI4 vehicles moved to v13 and then v14. When Musk acknowledged in January 2025 that HW3 simply could not reach unsupervised operation, and alluded to a difficult hardware retrofit.

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The near-term offering is more concrete. Tesla’s head of Autopilot Ashok Elluswamy confirmed on today’s call that a V14-lite will be coming to HW3 vehicles in late June, bringing all the V14 features currently running on AI4 hardware. That is a meaningful software update for owners who have been frozen at v12.6 for over a year, and it represents genuine effort to keep older hardware relevant. Unsupervised FSD for vehicles is now targeted for Q4 2026 at the earliest, with Musk describing it as a gradual, geography-limited rollout.

For HW3 owners, the over-the-air V14-lite update is welcomed, and the discounted trade-in path at least acknowledges an old obligation. What happens next with the trade-in pricing will define how this chapter ultimately gets written. If Tesla prices the hardware path fairly, acknowledges what early adopters are owed, and delivers V14-lite on the June timeline it committed to today, it has a real opportunity to convert one of the longest-running sore subjects among early adopters into a loyalty story.

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