Rivian Stock Tumbles after Amazon announces Stellantis Van Deal

[mkg3]

I said this on another thread earlier but I would bet this is a deal to buy Fiat Ducato EV vans in the EU or other locations overseas. It would make a lot of sense for Amazon because Rivian won't have vans there for a long time.

https://www.fiatprofessional.com/e-ducato-electric

Update:

Another source specifically mentions Ram version so I guess my speculation is wrong:

https://www.cnbc.com/2022/01/05/rivian-stock-plunges-after-news-of-amazon-stellantis-deal.html

Stallantis is trying to broaden Jeep and Ram brands in EU. Ram van does not equate to US/North America only.

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[jjswan33]

Stallantis is trying to broaden Jeep and Ram brands in EU. Ram van does not equate to US/North America only.

It’s possible but the ProMaster and the Ducato are identical vans except the badge on the side. I’d be surprised if a ProMaster is ever sold in the EU.

 

[C.R. Rivian]

This is part of why it's risky to give a partner like Amazon exclusivity in your tech stack.

No Amazon investment, probably no Rivian. The stock market will fluctuate. The commitment of Amazon to Rivian, including their commitment to buy 100,000 vans and their stockholdings is one of the reasons why markets have given Rivian the cash needed to ramp up production and look at a 2nd factory. Dislike Amazon if you are so inclined, but if you like Rivian, be glad that they are invested.

 

[lmr]

Most of the tech and EV sectors are down today, not sure if it's 100% related. Amazon will need more than 100K EV delivery vans globally if they want to transition. I think Rivian will do fine. Their bigger opportunity is expanding beyond Amazon and their Fleet operations.

This is right inline with Amazon's messaging provided in todays CNBC article on the topic:

“We always knew that our ambitious sustainability goals in our last mile operations would require multiple electric delivery van providers,” an Amazon spokesperson told CNBC in an email. “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.”

 

[AllInev]

https://www.bloomberg.com/news/arti...r-amazon-agrees-to-e-van-deal-with-stellantis

https://makeagif.com/i/vEPjnw

 

[Craigins]

at least it let my buy order finally trigger! another 125 shares @ 92. Not sure why this is surprising anyone, there is more demand than supply. Plenty of room for other manufacturers.

I'm just surprised because I thought RAM hadn't even started on anything electric. Just stats on a sheet of paper for the pickup. Last I read was 2024, which I take to mean 12/31/2024.

 

[dleepnw]

guess some folks here trying to see glass half full but all in all not a great look for Rivian and stock hit reflects that.

 

[jjswan33]

at least it let my buy order finally trigger! another 125 shares @ 92. Not sure why this is surprising anyone, there is more demand than supply. Plenty of room for other manufacturers.

I'm just surprised because I thought RAM hadn't even started on anything electric. Just stats on a sheet of paper for the pickup. Last I read was 2024, which I take to mean 12/31/2024.

They announced a ProMaster EV coming in 2023 a while back. And also the Ducato EV they are making for the EU market even sooner.

https://www.detroitnews.com/story/b...022-refresh-electric-battery-2023/8242334002/

https://europe.autonews.com/automakers/fiat-launches-full-electric-ducato-commercial-van

 

[Craigins]

They announced a ProMaster EV coming in 2023 a while back. And also the Ducato EV they are making for the EU market even sooner.

https://www.detroitnews.com/story/b...022-refresh-electric-battery-2023/8242334002/

https://europe.autonews.com/automakers/fiat-launches-full-electric-ducato-commercial-van

Interesting. My google news search isn't returning the detroit news article. Thanks. Strange that they are leading with the low volume vans. Maybe they are delaying until the 500mi range pack that they want for the pickup can be a reality.

 

[Gator42]

Amazon MO:

Step 1) Hire/partner with a supplier with promising IP and get contract entitling you to some or all IP/get them dependent on you

Step 2) Find second supplier to produce said product because supplier 1 cannot meet demand and to reduce supply chain risk

Step 3) Play suppliers against each other and watch them race to the bottom

Works for Disney!

 

[lostpacket]

No Amazon investment, probably no Rivian. The stock market will fluctuate. The commitment of Amazon to Rivian, including their commitment to buy 100,000 vans and their stockholdings is one of the reasons why markets have given Rivian the cash needed to ramp up production and look at a 2nd factory. Dislike Amazon if you are so inclined, but if you like Rivian, be glad that they are invested.

I just said it was risky to let Amazon control part of the tech stack. I did not express like or dislike. Nor did I say Amazon's order of vans was bad. For sure having fleet orders like that was critical to the launch of Rivian as a company.

But that also doesn't change the fact that a single large customer is an existential risk for a business. And letting that customer control technology that you use with other customers is additional risk.

I think what you said is true and agree with it but I am not 100% sure if you followed what I said.

To be fair though this is the time of year the news yodels on about inflation and large funds rotate out of growth stocks, so despite the "tumble" mentioned by the article I don't think this is too concerning for Rivian. Growth tech across the board is down big today it seems.

 

[Max]

Us poor reservation holders have no choice but to put up with it

Waiting for an $80K toy doesn't exactly make us poor and there is always a choice but I know what you mean

 

[Monkey]

I believe S-1 said exclusive to that specific variant, but they can sell other vans. Most outlets won't pick up that nuance though unfortunately.

Considering UPS and others have placed van orders with Rivian it's not like Amazon has a true exclusive. I couldn't say if there's anything specific to the Amazon van configuration, but they do have their specific model number. As does UPS.

Side note: does Stellantis have any significant EV production capability right now? I wonder if this is a 2024 buy.

Nothing much right now for actual production. But they have demonstrated concepts including the new Mercedes prototype this week with the 620mile/1000km range. Their truck/van EV platform is supposed to debut in 2024 and they already have van orders in before Amazon. We're supposed to see the BEV RAM pickup and presumably the van concept sometime this year.

 

[SeaGeo]

Considering UPS and others have placed van orders with Rivian it's not like Amazon has a true exclusive. I couldn't say if there's anything specific to the Amazon van configuration, but they do have their specific model number. As does UPS.


Nothing much right now for actual production. But they have demonstrated concepts including the new Mercedes prototype this week with the 620mile/1000km range. Their truck/van EV platform is supposed to debut in 2024 and they already have van orders in before Amazon. We're supposed to see the BEV RAM pickup and presumably the van concept sometime this year.

I didn't know UPS has an order in with them. Somehow I missed that. Cool!

 

[Longhorngirl]

Considering UPS and others have placed van orders with Rivian it's not like Amazon has a true exclusive. I couldn't say if there's anything specific to the Amazon van configuration, but they do have their specific model number. As does UPS..

Do you have a source for UPS ordering Rivian delivery vans. I know that UPS has ordered vans from Arrival, but am surprised to hear that they have also placed an order with Rivian. This would be big news.

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