What happened

With competition ramping up over the past few years, the electric vehicle (EV) landscape has become a virtual battlefield. Canoo (GOEV 4.74%), however, has taken a major step toward appearing on actual battlefields. The company announced today that it has delivered a vehicle to the U.S. Army for testing, and investors are cheering.

As of 11:11 a.m. ET on Thursday, shares of Canoo are up 4.9%, falling from their earlier climb of 11.2%.

So what

With Canoo delivering its new light tactical vehicle (LTV) to the Army, the company is fulfilling a contract it inked in July to provide an EV capable of use in extreme environments and with stealth technology, for analysis and demonstration.

According to Canoo, the LTV can serve a variety of functions. In addition to transitioning from a pickup to a flatbed truck or cargo vehicle, it can transport construction and oversize materials plus tactical equipment.

Now what

It's unsurprising that shares of Canoo are powering higher today, considering the market's response in July when the company was awarded the contract (shares were as much as 40% higher then). Investors are speculating that if the Army is happy with the LTV, it presents a new opportunity as a defense contractor in other countries.

There are a lot of miles to cross before that happens, however, so potential investors should tread cautiously before picking up shares of this EV stock.