autoevolution
Car video reviews:
 

Rivian Stock in Free-Fall After Amazon Signs Deal With Stellantis

Rivian stock trade at the lowest level ever after Amazon, one of the biggest backers and customers, signed a deal to buy electric delivery vehicles from rival Stellantis. The first deliveries should start next year, posing a threat to Rivian's position that largely depends on the huge Amazon order to survive.
Rivian stock in free-fall after Amazon signs deal with Stellantis 8 photos
Rivian stock in free-fall after Amazon signs deal with StellantisRivian stock in free-fall after Amazon signs deal with StellantisRivian stock in free-fall after Amazon signs deal with StellantisRivian stock in free-fall after Amazon signs deal with StellantisRivian stock in free-fall after Amazon signs deal with StellantisRivian stock in free-fall after Amazon signs deal with StellantisRivian stock in free-fall after Amazon signs deal with Stellantis
The terms of the deal Amazon signed with Stellantis were not revealed, but according to Stellantis CEO Carlos Tavares, the order means “a significant number” of their new Ram ProMaster Battery Electric Vehicle would be delivered to Amazon in 2023. Thus, Amazon will become the first commercial customer for Stellantis’ electric van.

Since Amazon is Rivian’s main backer and also its biggest customer, naturally the market freaked out to see a huge number of electric vans would not come from the startup’s production line, but Stellantis. Amazon had ordered 100,000 electric delivery vans from Rivian, with the first 10,000 expected to be delivered by the end of this year. Yet, some investors feel the new deal signed with Stellantis might jeopardize Rivian’s position, and hence the shares’ price drop.

Rivian has since intervened to calm the market, saying the deal with Amazon remains “intact, thriving and growing.” Given the scale of Amazon’s operations is only natural and expected for them to purchase vehicles from many providers. Amazon also stated pretty much the same thing after the Stellantis deal was announced.

We continue to be excited about our relationship with Rivian, and this doesn’t change anything about our investment, collaboration, or order size and timing,” reads the statement Amazon sent to the press.

Despite these reassurances, Rivian stock price continued to fall on Thursday and hovered around $80,00 at the time of writing. This comes after the crash on Wednesday when the price abruptly went to $90,00 after it was more or less stable at over $100,00 for some time. Rivian’s market value is at $72 billion now, after topping $100 billion briefly in November. At the time, Rivian was more valuable than Ford Motor Company, also an investor, and General Motors.

Editor's note: The information above is not investment advice.

 
 
 
 
 

Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories