EV maker Rivian Automotive Inc RIVN said on Wednesday that its electric delivery vans will now be available for businesses besides online retailer Amazon.com Inc AMZN to purchase.
What Happened: “We have amended our Amazon agreement with terms and conditions, which provide the opportunity to sell commercial vans to other customers, helping more companies reduce their CO2 emissions,” Rivian CEO RJ Scaringe said during the company’s third-quarter earnings call on Wednesday.
Amazon placed an order for 100,000 EDVs from Rivian in 2019. As per the initial contract, Rivian could deliver solely to Amazon for four years after initial deliveries. The California-based EV maker started delivering to Amazon in 2022.
Currently, Amazon has over 10,000 Rivian-made vans on the road and has delivered over 260 million packages with them. “We are excited to continue our work with Amazon to deliver on their initial order of 100,000 vehicles, along with a diverse set of new commercial customers,” Scaringe added.
However, for the fourth quarter, the company expects Amazon to take fewer deliveries of its vehicles as compared to prior periods due to the upcoming holiday period.
“…because Amazon limits the intake of new commercial vans during its peak holiday delivery period, we expect a more significant gap between production and deliveries in Q4 relative to prior periods,” company CFO Claire McDonough said.
Other Fleets For Rivian EDVs: The company said that it is in ‘active discussions’ with a number of large potential fleet customers for its EDVs. The company has also updated its website to make it open to inquiries by fleet operators.
Rivian’s delivery vans come in two variants- the Delivery 500 and the Delivery 700. While Delivery 500 offers a better range and starts at $83,000, the 700 variant has more space for cargo and storage and has a higher starting price of $87,000. Deliveries will start in 2024.
Check out more of Benzinga's Future Of Mobility coverage by following this link.
Photo courtesy: Rivian
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
