Rivian has terminated its exclusivity deal with Amazon, allowing it to sell its electric delivery vans to any company. Originally, Amazon had committed to purchasing 100,000 vans by 2030 but only received about 20,000 due to production delays and supply chain issues. With the Amazon deal no longer in place, Rivian is introducing two new van models to the market, priced at $83,000 and $87,000, with better profit margins. This move could potentially improve Rivian's financial outlook if it can secure large corporate fleet deals and expand its market. However, losing guaranteed orders from Amazon brings significant risks. The success of this strategy hinges on Rivian's ability to scale production and attract new buyers quickly.
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00:00Rivian just walked away from its Amazon exclusivity deal, but was this a game-changing decision or a billion-dollar blunder?
00:07Let's break it down. Rivian is now selling its electric delivery vans to any company that wants them.
00:12These vans were originally built for Amazon after a 2019 deal where the e-commerce giant Rivian's biggest investor agreed to buy
00:19100,000 vans by 2030.
00:20But after years of production delays, supply chain struggles, and fewer than expected orders, Rivian dropped the exclusivity clause.
00:26Amazon has only received about 20,000 of the promised vans. With that Amazon deal completely off the table,
00:32Rivian is opening up its fleet vans to a broader market. The company is rolling out two models, the 500 and the 700, starting at
00:3983,000 and 87,000. These new commercial vans have better profit margins than Rivian's other models, meaning this shift could actually improve the company's
00:47financial outlook. This could be a huge win for Rivian if they land big corporate fleet deals and expand its market beyond Amazon.
00:54But losing guaranteed orders from a major investor like Amazon is risky. Rivian's ability to scale production and find new buyers fast
01:01will determine whether this was a bold strategy or a costly mistake.
01:05So what do you think? Was dropping Amazon a smart move or a risky bet?
01:09Let us know in the comments and follow Ben Zinker for the latest EV news.