Skip to main content

Amazon to Buy More EVs, But Not From Rivian

Amazon reaches an agreement with automaker Stellantis to be the first commercial customer for its Ram ProMaster battery electric vehicle that will launch in 2023.

Amazon  (AMZN) - Get Free Report is planning to buy more electric vehicles for its last mile delivery service but not from its original EV purchase partner Rivian  (RIVN) - Get Free Report.

The Seattle-based tech giant on Wednesday said that it had reached an agreement with global automobile manufacturer Stellantis  (STLA) - Get Free Report to be the first commercial customer for its Ram ProMaster battery electric vehicle that will launch in 2023.

Amazon did not say how many vehicles Stellantis will deliver, but it said the companies plan to put thousands of Ram ProMasters on the road each year after the launch, according to a Wednesday statement. This is not great news for EV manufacturer Rivian, in which Amazon says it owns a 20% stake.

Shares of Rivian closed over 11% lower in the regular session on news of Amazon's deal.

Amazon has ordered 100,000 Rivian delivery vans to be delivered by 2030, with 10,000 those coming this year.

But Rivian last year said that as of Dec. 15 it had a backlog of 71,000 preorders and any orders placed after then wouldn't be delivered until 2023.

TheStreet Recommends: Resource Transition: An Investor's Playbook for 2022 (Webinar Preview)

Amazon's decision to do business with another vehicle manufacturer comes less than two months after Ford  (F) - Get Free Report and Rivian on Nov. 19 cancelled plans to jointly develop an EV. 

Ford is also a Rivian investor, as it backed the EV company in April 2019 with a $500 million investment.

Amazon and Stellantis reached a series of other multi-year agreements as well, including collaboration on STLA Smart Cockpit software that offers in-vehicle artificial intelligence-enhanced applications for entertainment, Alexa-enabled voice assistance, navigation, vehicle maintenance, ecommerce marketplaces and payment services, according to the statement.

Under the agreement, Stellantis will use Amazon Web Services as its preferred cloud provider for vehicle platforms. Stellantis and AWS will also launch  a new global learning curriculum to be known as Agile-Auto Software and Data Academy, which will cover software, data and cloud technology.

Stellantis plans to train over 5,000 developers and engineers by 2024 in AWS-related cloud technologies to quickly move to a data-driven enterprise in the cloud, according to a statement.

TheStreet Recommends: Greenflation Investing Opportunities In 2022