Posted: March 13, 2023 at 11:46 a.m. ET
Shares of Rivian Automotive Inc. fell more than 3% Monday after news that the electric car maker and Amazon.com Inc. They discuss potential changes to their electric delivery truck deal.
Citing people familiar with the matter, The Wall Street Journal reported Monday that the companies are in talks to end the exclusive portion of the electric truck deal. The report said talks began after Amazon’s order for this year was at the lower end of the previous range.
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Shares of Rivian Automotive Inc. fell more than 3% Monday after news that the electric car maker and Amazon.com Inc. They discuss potential changes to their electric delivery truck deal.
Citing people familiar with the matter, The Wall Street Journal reported Monday that the companies are in talks to end the exclusive portion of the electric truck deal. The report said talks began after Amazon’s order for this year was at the lower end of the previous range.
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The spokesperson said the two companies are in discussions. “We continue to work closely together and face a changing economic climate, as do many companies,” she said. “Our relationship with Amazon is a very positive one.”
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It signed a deal in 2019 to sell all of the electric car maker’s last-mile delivery vans to Amazon, which has been building its own delivery systems in an effort to reduce reliance on logistics companies like FedEx Corp.
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and United Parcel Service Inc.
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Amazon invested $700 million in Rivian as one of the first major backers of the EV maker. It’s Rivian’s largest shareholder, according to FactSet, with a 17% stake that’s currently worth more than $2 billion.
Rivian has been under pressure to ramp up production and cut costs, and last month the company disappointed Wall Street by missing fourth-quarter revenue forecasts and revealing struggles with parts shortages and other manufacturing shortcomings.
Rivian shares have lost 63% in the past 12 months, compared to a loss of about 7% for the S&P 500.
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