00:00Rivian just walked away from its Amazon exclusivity deal, but was this a game-changing decision or a billion-dollar blunder?
00:07Let's break it down. Rivian is now selling its electric delivery vans to any company that wants them.
00:12These vans were originally built for Amazon after a 2019 deal where the e-commerce giant Rivian's biggest investor agreed to buy
00:19100,000 vans by 2030.
00:20But after years of production delays, supply chain struggles, and fewer than expected orders, Rivian dropped the exclusivity clause.
00:26Amazon has only received about 20,000 of the promised vans. With that Amazon deal completely off the table,
00:32Rivian is opening up its fleet vans to a broader market. The company is rolling out two models, the 500 and the 700, starting at
00:3983,000 and 87,000. These new commercial vans have better profit margins than Rivian's other models, meaning this shift could actually improve the company's
00:47financial outlook. This could be a huge win for Rivian if they land big corporate fleet deals and expand its market beyond Amazon.
00:54But losing guaranteed orders from a major investor like Amazon is risky. Rivian's ability to scale production and find new buyers fast
01:01will determine whether this was a bold strategy or a costly mistake.
01:05So what do you think? Was dropping Amazon a smart move or a risky bet?
01:09Let us know in the comments and follow Ben Zinker for the latest EV news.
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