Back in October 2020, Rivian revealed its latest model, an all-electric delivery van, but there was just one minor catch – due to an exclusive agreement with retail giant Amazon, the van was only available to that company and no one else – retail or commercial customers alike – a strategy that Ford CEO Jim Farley called “flawed.” However, as Ford Authority reported back in March, Rivian and Amazon were previously contemplating scrapping that deal after Amazon dialed back its planned purchase of the vans due to budget cuts. Now, Rivian will indeed begin selling its EV vans to other customers, according to Fortune, effectively making it a proper Ford E-Transit rival.
Rivian still plans to fulfill its obligation to supply Amazon with 100,000 vans by 2030, but is looking to ramp up sales by also selling it to other customers. Such a move “has been part of our plan with Rivian from the beginning,” said Udit Madan, Amazon’s vice president of transportation. “We’ve been building relationships with a diverse set of commercial operators,” added Rivian CEO R.J. Scaringe.
This news comes as Rivian posted better than expected results in Q3, posting record revenue of $1.34 billion with a net loss of $1.37 billion versus $1.72 billion a year ago, along with a loss per share of $1.19 versus the expected $1.32. As such, the EV automaker is also ramping up its production target for 2023 from 52,000 units to 54,000 due to “the progress experienced on our production lines, the ramp of our in-house motor line, and the supply chain outlook,” the company stated. This is a sharp contrast to Ford, GM, and other automakers that are scaling back EV plans amid softened demand.
We’re incredibly excited to launch our Rivian Commercial Van to fleet customers across the country. Around a quarter of CO2 emitted in the transportation sector in the US comes from commercial vans — businesses can help cut emissions and make a difference: https://t.co/w5Tb6zSBaD pic.twitter.com/sxUMPJPBeF
— Rivian (@Rivian) November 7, 2023
“I think there is an overreaction to some of the short- or medium-term headwinds we see,” Scaringe said, citing high interest rates and geopolitical challenges. “We remain deeply convicted around the transition of the entirety our of transportation space.”