Rivian is reportedly in talks with Amazon to change the terms of its delivery van deal, as they want to be able to sell its delivery van to other customers.
The terms of the deal were originally agreed to in 2019 when Amazon agreed to buy 100,000 EDVs from the company this decade. In recent months, however, the tech giant has been in a cost-cutting phase, which included ordering only 10,000 vans for 2023, which is in the low range of what Rivian was expecting, the Wall Street Journal reports.
Now, the automaker is working to remove the exclusivity terms of the deal. The talks are ongoing between the companies, with Amazon saying that it is still committed to ultimately purchasing 100,000 vehicles by 2030.
Read: Rivian Cuts Almost 500 Jobs In California To Save Cash
The deal has always been an important one for Rivian, providing it with a steady flow of orders for its electric vehicles. A Rivian spokesperson said, though, that both it and Amazon are “navigating a changing economic climate.”
Earlier this year, Amazon laid off 18,000 workers and is pausing construction on its second headquarters following a drop in e-commerce sales. Rivian, too, has been forced to implement layoffs as it seeks to save money.
In September, the automaker agreed to a partnership with Mercedes to use a common production line to make electric delivery vehicles in Europe. By December, the deal had been put on pause, with Rivian saying it wanted to focus on its current product development while putting on hold plans to develop a new vehicle architecture.
Further troubling the company, its shares fell last month after it said it planned to make 50,000 vehicles this year, which was below the estimates of investors. It is unclear how Amazon’s small order will affect the company’s actual delivery targets. Whether breaking out of its exclusivity deal will help the company sell to other customers remains to be seen.
Investors are wary about the move so far, with shares falling three percent in pre-market trading. Amazon doesn’t seem opposed to it, though. In comments to Reuters, a spokesperson said, “While nothing has changed with our agreement with Rivian, we have always said we want others to benefit from their technology in the long run.”
