Rivian revisiting its Amazon unique settlement for EV supply vans
Considered one of Amazons new electrical supply vans from Rivian will get prepared to depart the Amazon Distribution Facility on Cyber Monday on November 28, 2022 in Aurora, Colorado.
Rj Sangosti | Denver Put up | Getty Pictures
Rivian and Amazon are in discussions to regulate the exclusivity clause of their settlement for the EV maker’s electrical supply vans, an organization spokeswoman stated Monday.
Eliminating the exclusivity piece of the settlement would enable Rivian to court docket new clients as it really works to ramp manufacturing of the vans and its R1 sequence pickup and SUV. The corporate can be engaged on a forthcoming R2 mannequin and is in want of money. Final week, Rivian introduced plans to raise $1.3 billion through a sale of convertible notes to assist fund R2 improvement and launch.
Rivian spokeswoman Marina Norville stated in a press release the corporate’s relationship with Amazon has and continues to be a constructive one.
“We proceed to work intently collectively, and are navigating a altering financial local weather, much like many corporations,” she stated.
Rivian and Amazon struck a deal in 2019 handy over 100,000 electrical vans to the e-commerce large. Amazon began delivering packages with the automobiles in July, and Rivian final month touted 10 million packages delivered through the vans.
However Amazon, Rivian’s largest shareholder, has since underwhelmed with its order numbers, telling Rivian it wished to purchase about 10,000 automobiles this 12 months — the low finish of a beforehand said vary, based on The Wall Street Journal, which first reported the discussions to finish exclusivity.
Amazon stated in a press release to CNBC that 10,000 automobiles was the unique dedication, and that there was no change to its order quantity or partnership with Rivian.
“Whereas nothing has modified with our settlement with Rivian, we have all the time stated that we wish others to profit from their expertise in the long term as a result of having extra electrical supply automobiles on the street is sweet for our communities and our planet,” an Amazon spokesperson stated.
Shares of Rivian fell round 3% Monday.
—CNBC’s Annie Palmer and John Rosevear contributed to this report.