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Walmart’s Deal With EV Startup Canoo Comes With Strings: No Amazon
- Filing indicates Canoo’s deal with Walmart is non-binding
- Retailer granted warrant with some shares vesting immediately
Walmart agreed to purchase as many as 10,000 battery-powered vans from Canoo.
Source: Canoo/PRNewswireThis article is for subscribers only.
Walmart Inc.’s deal backing an electric-vehicle startup has some strings, including a provision preventing sales to rival Amazon.
The retail giant’s agreement to purchase as many as 10,000 battery-powered vans from Canoo Inc. provides a lifeline for the fledging auto manufacturer, whose shares surged more than 50% when the news broke on Tuesday. Walmart could also wind up owning more than one-fifth of Canoo through a warrant issued to the retailer as part of the deal.