Rivian is renegotiating its exclusive Amazon deal for EV trucks

One of Amazons new electric delivery vans from Rivian prepares to leave the Amazon Distribution Facility during Cyber ​​Monday on November 28, 2022 in Aurora, Colorado.

Rj Sangosti | Denver Post | Getty Images

Rivian and Amazon A company spokeswoman on Monday discussed amending an exclusive clause in the EV maker’s contract for electric delivery trucks.

Removing the exclusivity part of the agreement will allow Rivian to court new customers as it continues to produce vans and its R1 series pickup truck and SUV. The company is also working on the upcoming R2 model and needs cash. Last week, Rivian announced plans to raise $1.3 billion through the sale of convertible notes to help finance R2’s development and launch.

Rivian spokeswoman Marina Norville said in a statement that the company’s relationship with Amazon is positive and ongoing.

“We continue to work closely together and, like many companies, are navigating the changing economic climate,” he said.

Rivian and Amazon have agreed to supply the e-commerce giant with 100,000 electric trucks in 2019. Amazon began delivering packages with vehicles in July, and Rivian celebrated 10 million packages delivered via vans last month.

But Amazon, Rivian’s largest shareholder, has since backed down on its order numbers and said it wants Rivian to buy about 10,000 vehicles this year — the low end of a range it had previously indicated, according to The Wall Street Journal, which first reported that discussions had ended. . exclusivity.

Amazon said in a statement to CNBC that 10,000 vehicles was the initial commitment and that there had been no change to its order size or partnership with Rivian.

“Nothing has changed in our agreement with Rivian, we’ve always said we want others to benefit from their technology in the long term, because having more electric delivery vehicles on the road is good for our communities and the planet,” Amazon said. said the press secretary.

Rivian shares were down about 3% on Monday.

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

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