Rivian Automotive Inc. shares tumbled Wednesday after Stellantis, the automaker formerly known as Fiat Chrysler, announced an agreement to supply Amazon with battery-electric delivery vans.
Rivian shares are down more than 9% to $91 handle on the news that Stellantis will be delivering electric vehicles to Amazon next year.
In 2019, Amazon awarded Rivian an order for 100k electric delivery vans. The first 10,000 vans will be delivered by the end of 2022. That places Stellantis directly in competition with Rivian for Amazon business and is why investors sold shares.
Stellantis CEO didn’t disclose the order’s size but said it was a “significant number.”
“We always knew that our ambitious sustainability goals in our last mile operations would require multiple electric delivery van providers,” an Amazon spokesperson told CNBC in an emailed statement.
“We continue to be excited about our relationship with Rivian, and this doesn’t change anything about our investment, collaboration, or order size and timing,” the person said.
The figure on just how many electric delivery vans Amazon will purchase from Stellantis is still unknown. The e-commerce company currently has about 70,000 vehicles on US highways.
Amazon’s move to tap Stellantis for electric vans could be explained in our prior report here.