Published: March 13, 2023 at 11:46 a.m. ET
The share of Rivian Automotive Inc. fell more than 3% on Monday following news that the electric vehicle maker and Amazon.com Inc. discuss possible changes to their electric van deal.
Citing people familiar with the matter, the Wall Street Journal reported Monday that the companies are in talks to end the exclusivity portion of their electric van deal. The talks began after Amazon’s order for the year was at the low end of its previous range, the report said.
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The share of Rivian Automotive Inc. fell more than 3% on Monday following news that the electric vehicle maker and Amazon.com Inc. discuss possible changes to their electric van deal.
Citing people familiar with the matter, the Wall Street Journal reported Monday that the companies are in talks to end the exclusivity portion of their electric van deal. The talks began after Amazon’s order for the year was at the low end of its previous range, the report said.
A Rivian
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A spokesman said the two companies are in talks. “We continue to work closely together and navigate a changing economic climate, as do many other companies,” she said. “The relationship we have with Amazon is very positive.”
Rivian and Amazon
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closed a deal in 2019 to sell all of the EV maker’s last-mile delivery vans to Amazon, which was building its own last-mile delivery systems in an effort to reduce its 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 EV maker’s biggest early backers. It is Rivian’s largest shareholder, according to FactSet, with a 17% stake currently worth more than $2 billion.
Rivian is under pressure to ramp up production and cut costs, and last month the company disappointed Wall Street by falling short of fourth-quarter revenue expectations and exposing parts shortages and other production issues.
Rivian shares have lost 63% in the last 12 months, compared to a loss of about 7% for the S&P 500
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.
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