The electric delivery vehicle from Rivian might not be limited to Amazon for much longer. According to Wall Street Journal sources, Rivian and Amazon are discussing removing the exclusivity clause in their 2019 purchase deal. According to reports, the EV manufacturer is dissatisfied with Amazon for ordering 10,000 vans this year, at the low end of a previously indicated range. By pursuing new clients, Rivian could increase sales as a result of the termination.
There is no information on the specifics of the suggested improvements. Sources claim that the negotiations are still ongoing.
Rivian has been contacted for comment. According to an Amazon spokeswoman, Rivian is still a “important partner” and the company still plans to purchase 100,000 vans by 2030. The business also states that the arrangement has not changed. At the same time, the official claims that Rivian technology is something that Amazon wants “others to benefit” from because more electric delivery cars on the road eventually benefits everyone.
The Amazon agreement is still vital to Rivian’s financial situation. The vans make up one-third of Rivian’s current production output and are boosting the company’s manufacturing figures, which are still insignificant in comparison to rivals like Tesla. In 2022, Rivian only produced 24,337 automobiles. While the company ramps up sales of its R1S SUV and R1T truck, and works on its more economical R2 series, larger van orders would dramatically increase the company’s output and bring greater financial security.
Amazon made a sizable investment in the electric vehicle start-up, which has helped Rivian maintain a sizable cash reserve. To combat a difficult economy, increased prices, and decreasing access to funding, it has undertaken two rounds of layoffs over the past year and is still battling to become profitable. Improved sales will aid the corporation in avoiding further budget cuts, which is under pressure.
