After a production pause last August due to a shortage of parts, Rivian Automotive has launched sales of its fleet of electric delivery vans, the company said Feb. 10.
First announced in late 2023, The Rivian Commercial Van is the same platform developed for Amazon’s fleet of custom electric delivery vans. With the Amazon exclusivity period now over, the Irvine-based EV maker has been testing several large fleets to prepare for delivery and sales management for the mass market.
“Over the last year, we have been focusing our efforts on testing with some larger fleets, and we’re really pleased with how those trials have gone,” Senior Director, Business Development Tom Solomon said in statement.
Back in 2023, Rivian said it would “initially prioritize larger fleet requests and begin small scale deployments in 2024, prior to scaling deliveries in 2025.”
“As a result, we’re excited to now be able to open sales to fleets of all sizes in the U.S., whether they want one van or thousands,” Solomon added.
Amazon Owns 16% Stake in Rivian
The commercial van comes in two sizes, the 500 starting at $79,900 and the 700 at $83,900 and can carry up to 2,663 pounds.
In 2019, Amazon made a commitment to achieve net-zero carbon by 2040. As part of that pledge, the e-commerce giant has partnered with Rivian to bring 100,000 electric delivery vehicles on the road by 2030.
Amazon, the EV maker’s largest investor with a 16% stake, has received over 20,000 Rivian vehicles so far.
The temporary halt from 2024 affected the commercial van production at Rivian’s Normal, Ill. manufacturing facility and no other Rivian vehicles, Reuters reported at the time.
A Rivian spokesperson told Reuters that the company expected “to recover all missed production.”
In October, Rivian lowered its production guidance for 2024 from 57,000 vehicles total to a range of 47,000 to 49,000 EVs for the year.
Its initial production forecast for 2024 was flat compared to 2023, and the updated guidance pointed to a 14% to 18% decrease compared to its 2023 production of 57,232 vehicles.
The company cited a shortage of a shared component on its R1 vehicle and commercial van platforms that was causing the production disruption during the company’s third quarter.
The company on Feb. 20 reported fourth quarter revenue grew 24% to $1.7 billion.
Investors have worried that the company will run out of cash before it can become profitable. Rivian said it improved its cost structure, reducing net cash used in operating activities from $4.9 billion in 2023 to $1.7 billion last year.
Rivian also said it closed its joint venture with Volkswagen Group in a deal estimated at $5.8 billion. The capital and a $6.57 billion federal loan is expected “to fund operations through the ramp” of its newest R2 vehicle, the company said.
“I believe the combination of capabilities and cost efficiencies along with the amazing level of excitement from customers will make R2 a truly transformational product,” Chief Executive RJ Scaringe said.
The EV maker delivered 51,579 vehicles in 2024. It forecasts delivery of 46,000 to 51,000 vehicles this year; some analysts called it a weak forecast.
After the report, shares fell 4.7% on Feb. 21 to $12.97 and a $13.2 billion market cap at press time.
