Rivian revisiting its Amazon exclusive agreement for EV delivery trucks

A single of Amazons new electric powered supply vans from Rivian gets ready to depart the Amazon Distribution Facility on Cyber Monday on November 28, 2022 in Aurora, Colorado.

Rj Sangosti | Denver Write-up | Getty Illustrations or photos

Rivian and Amazon are in discussions to regulate the exclusivity clause of their agreement for the EV maker’s electric powered supply vehicles, a organization spokeswoman stated Monday.

Eradicating the exclusivity piece of the settlement would let Rivian to court docket new shoppers as it functions to ramp production of the vans and its R1 sequence pickup and SUV. The enterprise is also performing on a forthcoming R2 product and is in need of cash. Past week, Rivian declared designs to increase $1.3 billion by way of a sale of convertible notes to enable fund R2 progress and start.

Rivian spokeswoman Marina Norville reported in a statement the company’s partnership with Amazon has and carries on to be a favourable just one.

“We carry on to function closely alongside one another, and are navigating a transforming financial climate, very similar to numerous corporations,” she mentioned.

Rivian and Amazon struck a deal in 2019 to hand in excess of 100,000 electrical vans to the e-commerce big. Amazon began providing packages with the cars in July, and Rivian past thirty day period touted 10 million offers delivered via the vans.

But Amazon, Rivian’s biggest shareholder, has since underwhelmed with its order figures, telling Rivian it required to acquire about 10,000 automobiles this calendar year — the low close of a previously said selection, according to The Wall Avenue Journal, which 1st documented the discussions to close exclusivity.

Amazon explained in a statement to CNBC that 10,000 vehicles was the original motivation, and that there has been no change to its get quantity or partnership with Rivian.

“Though very little has altered with our settlement with Rivian, we have often mentioned that we want others to benefit from their technological innovation in the prolonged operate because owning more electric supply autos on the highway is very good for our communities and our earth,” an Amazon spokesperson reported.

Shares of Rivian fell close to 3% in early investing Monday.

—CNBC’s Annie Palmer and John Rosevear contributed to this report.