Amazon and Rivian negotiating end of exclusivity agreement for EDV Electric Delivery Van

[Guy]

Interesting article in the WSJ about Rivian and Amazon negotiating to scrap the EDV exclusivity agreement. Link below with some of the article pasted.

https://apple.news/Ab7VEi5pdS7qfEknRcmrNHQ


Under terms of a 2019 agreement, Rivian is required to sell all of the vans it makes to Amazon. In recent months, Amazon notified Rivian that it wanted to buy about 10,000 vans this year, which was at the low end of a range it previously provided the auto maker, the people said.


In response, Rivian sought to remove the exclusivity terms, the people said. Talks are ongoing, they said.

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[Dark-Fx]

Interesting article in the WSJ about Rivian and Amazon negotiating to scrap the EDV exclusivity agreement. Link below with some of the article pasted.

https://apple.news/Ab7VEi5pdS7qfEknRcmrNHQ


Under terms of a 2019 agreement, Rivian is required to sell all of the vans it makes to Amazon. In recent months, Amazon notified Rivian that it wanted to buy about 10,000 vans this year, which was at the low end of a range it previously provided the auto maker, the people said.


In response, Rivian sought to remove the exclusivity terms, the people said. Talks are ongoing, they said.

Rivian reached out to me last month about my interest in the RCV but they didn't give a timeline in the response email at all. I'll definitely be making a post once they can provide more information about it. Sounds like based on this news article, that could end up being sooner than later.

 

[Guy]

Rivian reached out to me last month about my interest in the RCV but they didn't give a timeline in the response email at all. I'll definitely be making a post once they can provide more information about it. Sounds like based on this news article, that could end up being sooner than later.

Once they negotiate away the exclusivity agreement then they can sell to you and others. Since their capacity for EDV production outstrips the 10-15k a year Amazon want through to 2030 this is the right decision.

 

[Rivian_Hugh_III]

“Amazon.com Inc. and Rivian Automotive Inc. are in talks to scrap the exclusivity part of their electric-van deal, allowing the auto maker to sell to others, after the technology giant’s order for 2023, according to people familiar with the matter.

“Under terms of a 2019 agreement, Rivian is required to sell all of the vans it makes to Amazon. In recent months, Amazon notified Rivian that it wanted to buy about 10,000 vans this year, which was at the low end of a range it previously provided the auto maker, the people said.

“In response, Rivian sought to remove the exclusivity terms, the people said. Talks are ongoing, they said.

“An Amazon spokeswoman said the company remains committed to buying 100,000 vans from Rivian by 2030, which were the terms outlined in the original agreement. “Rivian remains an important partner for Amazon, and we’re excited about the future,” she said.

Source: WSJ

 

[COdogman]

It would be good for Rivian and also smart for Amazon to not put all their eggs in one basket for EDVs. They will work something out.

 

[who764]

Unless this is an indication that Amazon is losing confidence in Rivian, I think this is a net positive. This enables Rivian to get their EDV's in more hands and focus on building out the commercial side of things a little.

 

[Shnork]

hopefully this will be a positive for rivian , does anyone know how many EDV's they delivered last year and what there projected out was to be this year.

 

[Sharpobjects4321]

I believe part of the 2019 agreement is a "fall away" of the exclusivity after a number of years and then Amazon has the right of first refusal. if Rivian can get that "right of first refusal" moved up I think its a win/win for both companies. That would allow Amazon to get first chance to buy everything off the line or say give Rivian a projection for the year but also let Rivian enter deals with other delivery companies and sell the excess.

 

[Donald Stanfield]

Unless this is an indication that Amazon is losing confidence in Rivian, I think this is a net positive. This enables Rivian to get their EDV's in more hands and focus on building out the commercial side of things a little.

Amazon has been scaling back expenditures across the board for a year or so now. They have shuttered or closed many delivery centers that were already open or in the process of construction. I don't take this as a sign of anything but Amazon trying to pinch their pennies for what they see as a looming recession.

 

[Donald Stanfield]

Looks like last week was an excellent time to buy Rivian stock. If they can sell more EDV's that would be huge for them. If I had a service company I would buy them for my techs as the 150 mile daily range is usually more than enough for a company making service calls and the operation and safety of an EV would really help stack the deck in favor of company efficiency.

 

[PappaBolt]

Amazon has been scaling back expenditures across the board for a year or so now. They have shuttered or closed many delivery centers that were already open or in the process of construction. I don't take this as a sign of anything but Amazon trying to pinch their pennies for what they see as a looming recession.

^This. Amazon is in a cost cutting mode. The contract was always one-sided. Amazon has exclusive right to buy Rivian’s vans, but locked Rivian out of selling to anyone else. Meanwhile Amazon can (and has) contracted to buy vans from other manufacturers in addition to Rivian.

 

[Sgt Beavis]

Wall Street don’t like it. Rivian stock just hit another 52wk low.

 

[Sharpobjects4321]

Wall Street don’t like it. Rivian stock just hit another 52wk low.

I think wall street is worried that there will be no demand for the EDV if Amazon isn't there to buy them. that fear of the unknown is why there is a sell off. if you believe that they can make another deal then there is opportunity at this price.

EDIT: if amazon isn't there to buy the excess. amazon is firm on 10k. Rivian can produce more this year and make alot of money on each- with the LFP batteries/Eduro and the New EV Credit. they want to make a boat load more and get another contract with USPS/DHL/FEDEX/UPS.

 

[kurtlikevonnegut]

IMO, Rivian needed the exclusivity clause to get the 100k order from Amazon and they needed the 100k order from Amazon to have the IPO that they had and to be seen as viable long term.

If they can maintain the 100k order from Amazon without the exclusivity, that's a huge win for Rivian (and the stonks) because I am confident that there is a very large market for the EDV that goes beyond Amazon.

 

[jjswan33]

Unless we are going to argue this is also moving Tesla and Lucid it looks like just normal sector movement rather than based on this specific news.

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