Rivian reviewing its Amazon unique arrangement for EV delivery van

Rivian revisiting its Amazon exclusive agreement for EV delivery trucks

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One of Amazons brand-new electrical shipment vans from Rivian prepares yourself to leave the Amazon Distribution Facility on Cyber Monday on November 28, 2022 in Aurora, Colorado.

Rj Sangosti|Denver Post|Getty Images

Rivian and Amazon remain in conversations to change the exclusivity provision of their arrangement for the EV maker’s electrical delivery van, a business spokesperson stated Monday.

Eliminating the exclusivity piece of the arrangement would enable Rivian to court brand-new clients as it works to ramp production of the vans and its R1 series pickup and SUV. The business is likewise dealing with an upcoming R2 design and requires money. Last week, Rivian revealed strategies to raise $1.3 billion by means of a sale of convertible notes to assist fund R2 advancement and launch.

Rivian spokesperson Marina Norville stated in a declaration the business’s relationship with Amazon has and continues to be a favorable one.

“We continue to work closely together, and are navigating a changing economic climate, similar to many companies,” she stated.

Rivian and Amazon struck a handle 2019 to turn over 100,000 electrical trucks to the e-commerce giant. Amazon started providing plans with the cars in July, and Rivian last month promoted 10 million plans provided by means of the vans.

But Amazon, Rivian’s biggest investor, has actually considering that underwhelmed with its order numbers, informing Rivian it wished to purchase about 10,000 cars this year– the low end of a formerly mentioned variety, according to The Wall Street Journal, which initially reported the conversations to end exclusivity.

Amazon stated in a declaration to CNBC that 10,000 cars was the initial dedication, which there has actually been no modification to its order volume or collaboration with Rivian.

“While nothing has changed with our agreement with Rivian, we’ve always said that we want others to benefit from their technology in the long run because having more electric delivery vehicles on the road is good for our communities and our planet,” an Amazon representative stated.

Shares of Rivian fell around 3% in early trading Monday.

— CNBC’s Annie Palmer and John Rosevear added to this report.

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