Rivian (RIVN) signs first partner outside of Amazon to buy its electric Commercial Vans

EV maker Rivian (RIVN) has found its first partner outside of Amazon to buy its electric Commercial Vans. Rivian announced Thursday that AT&T will buy its electric vans and R1 vehicles in a new pilot program.

Through the new initiative, AT&T will begin adding Rivian Commercial Vans and R1 models like the R1T and R1S to its fleet early next year.

AT&T will use the electric vans to cut costs, improve safety, and reduce its carbon footprint. With plans to reach carbon neutrality by 2035, transitioning its fleet will be key.

AT&T’s strategy includes shifting to electric vehicles, optimizing routes, and reducing its overall fleet to cut emissions. The wireless carrier says it drives 20% fewer miles each year, helping to reduce emissions by 51 million lbs.

Around a quarter of CO2 emissions from transportation in the US come from commercial vans, according to Dagan Mishoulam, VP of Strategy & Fleet at Rivian.

This makes it “imperative we do all we can as soon as possible to cut emissions,” Mishoulam explained.

Rivian finds first non-Amazon commercial van partner

AT&T is the first Rivian partner outside of Amazon to agree to buy its commercial vans. Amazon invested $700M into Rivian in 2019, agreeing to purchase over 100,000 vans. They are expected to roll out by the end of the decade as part of the Amazon co-founded Climate Pledge commitment.

Rivian said it would prioritize larger fleet deployments (like Amazon) ahead of small-scale deployments starting next year. The EV maker plans to ramp up deliveries in 2025.

Rivian finally ended its exclusivity agreement with Amazon last month, enabling it to sell to other customers.

Rivian’s Commercial Van is designed to “set a new standard in safety, sustainability, and ownership cost.” With standard safety features like emergency braking, driver assist, and a 360-degree camera system, the vehicle is equipped to be “one the safest and most technologically advanced vehicles on the road today,” according to Rivian.

As of October, Amazon has rolled out over 10,000 Rivian EDVs as it works toward hitting its 100K goal.

Rivian’s (RIVN) stock is up 12% following the AT&T news. Share prices are now up close to 30% over the past month. However, Rivian stock is still down 10% over the past 12 months and over 87% from its all-time highs back in November 2021 after going public.

Electrek’s Take

Although the press release is light on the details, the news shows Rivian is expanding its commercial business outside of Amazon.

The EV maker continues to surpass expectations. After crushing Q3 estimates, Rivian raised its 2023 production goal to 54K, up 2K from its previous target.

Rivian delivered over 15.5K vehicles in Q3, up 24% from the previous quarter. Production was also up 17% to 16,304 units.

With a vertically integrated software stack, CEO RJ Scaringe says the company has a “substantial competitive advantage.” The EV maker will introduce its R2 platform next year, with models costing around $40K to 60K, according to CFO Claire McDonough.