Al Root

Shares of Rivian Automotive rose Monday after the company said it would start selling its all-electric delivery vans to other companies besides Amazon.com.

Rivian shares were up 3.4% at $12.90 in midday trading on Monday, while the S&P 500 and Dow Jones Industrial Average were 0.7% and 0.4%, respectively.

Amazon is an investor in Rivian, holding about 15% of the stock outstanding. It also helped the start-up by ordering 100,000 delivery vans.

Rivian received roughly $2 billion in revenue from Amazon between 2022 and 2024. Amazon's van pricing isn't disclosed, but that is more than 20,000 vans.

The base price for the van for new customers looks to be roughly $80,000.

"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," said Tom Solomon, senior director of business development at Rivian. "Our vehicles are designed to not only be among the safest on the road but will also help fleet owners to reduce the cost of fleet ownership and their carbon footprint."

More potential customers is a positive, but supply chain concerns limited production in 2024. Rivian produced 49,476 vehicles in 2024, down from the 57,232 made in 2023.

Shares jumped 24.5% on Jan. 3, closing at $16.49, after the company announced 2024 production numbers. It was the largest one-day jump on record for the stock, according to Dow Jones Market Data.

A supply chain update was responsible for the big jump. Rivian said "The previously discussed shortage of a shared component on the R1 and RCV platforms is no longer a constraint on Rivian's production."

The R1 is the truck and SUV for consumers. The RCV is the delivery vehicle.

Rivian stock was down about 22% over the past 12 months through midday trading Monday. Slowing demand growth for EVs and more EV competition has weighed on shares.

More delivery vans to other customers can help kickstart growth again. Rivian just has to make the vehicles.

Wall Street projects 55,000 vehicles delivered to customers in 2025.

Write to Al Root at allen.root@dowjones.com

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February 10, 2025 14:33 ET (19:33 GMT)

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