The exclusivity agreement that Rivian has with Amazon for electric delivery trucks is being reviewed
A company spokeswoman stated on Monday that Rivian and Amazon are in talks to modify the exclusivity clause in their agreement for the EV manufacturer’s electric delivery trucks.
Rivian would be able to attract new customers as it ramps up production of the vans and its R1 series pickup and SUV if the exclusivity clause in the agreement was removed. The organization is likewise dealing with an impending R2 model and is needing cash. Rivian announced last week that it would sell convertible notes to raise $1.3 billion to support R2’s development and launch.
Rivian representative Marina Norville said in a statement the company’s relationship with Amazon has and keeps on being a positive one.
“We continue to work closely together, and are navigating a changing economic climate, similar to many companies,” she said.
In 2019, Rivian and Amazon agreed to give the e-commerce giant more than 100,000 electric trucks. Amazon began using the vans to deliver packages in July, and Rivian reported last month that 10 million packages had been delivered by the vans.
Yet, Amazon, Rivian’s largest shareholder, has since disappointed with its organization numbers, telling Rivian it wanted to purchase around 10,000 vehicles this year — the low finish of a formerly stated range, which previously detailed the conversations to end exclusivity.
In a statement, Amazon stated that the original commitment to purchase 10,000 vehicles had not changed, nor had its partnership 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 spokesperson said.
On Monday, Rivian’s shares dropped about 3%.