Fleet Section Added to Website

[McMoo]

This appears to be new but admittedly I haven’t been on the site in a while.

https://rivian.com/fleet

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[André]

Kind of weird. Why push the sales effort in something exclusive to Amazon for a long time unless they deliver 100K EDV to them very quickly ?

I know that the fleet management software may be offer to existing fleet but the strength of it must be in specifics of an electric vehicule (charging, maintenance, etc.). Is this a long term push for an emerging market or a slideshow for the shareholders ?

 

[jjswan33]

Kind of weird. Why push the sales effort in something exclusive to Amazon for a long time unless they deliver 100K EDV to them very quickly ?

I know that the fleet management software may be offer to existing fleet but the strength of it must be in specifics of an electric vehicule (charging, maintenance, etc.). Is this a long term push for an emerging market or a slideshow for the shareholders ?

If I were to speculate. Amazon probably doesn't necessarily want 100k vans all at once, for instance they have a lot of vans already so they will want to get their usable life. Also they probably want to phase the RDV in, adding charging infrastructure and all of those things. If Rivian can make conservatively that 30k+ a year in 2023 and Amazon only wants 20k in 2023 then they would have capacity to supply other fleets.

I am sure one could come up with other explanations, window dressing as you say but they have already advertised this in their S1 and the Roadshow video so nothing to lose adding it to the website.

 

[CommodoreAmiga]

If I were to speculate. Amazon probably doesn't necessarily want 100k vans all at once, for instance they have a lot of vans already so they will want to get their usable life. Also they probably want to phase the RDV in, adding charging infrastructure and all of those things. If Rivian can make conservatively that 30k+ a year in 2023 and Amazon only wants 20k in 2023 then they would have capacity to supply other fleets.

I am sure one could come up with other explanations, window dressing as you say but they have already advertised this in their S1 and the Roadshow video so nothing to lose adding it to the website.

AFAIK, Amazon has an exclusivity clause for 4 years. Rivian can’t sell EDVs to anyone else — even if Amazon doesn’t want them.

 

[electrictaco]

Kind of weird. Why push the sales effort in something exclusive to Amazon for a long time unless they deliver 100K EDV to them very quickly ?

I know that the fleet management software may be offer to existing fleet but the strength of it must be in specifics of an electric vehicule (charging, maintenance, etc.). Is this a long term push for an emerging market or a slideshow for the shareholders ?

Fleet sales have long sales cycles, especially with EVs where the charging infrastructure needs to be part of the equation. Many projects start with RFPs 12-18 months before they expect a go-live date. Looking over the imagery here it's not hard to see that everything is a CAD mockup, so they're probably pretty far off on a lot of this stuff.

 

[André]

If I were to speculate. Amazon probably doesn't necessarily want 100k vans all at once, for instance they have a lot of vans already so they will want to get their usable life. Also they probably want to phase the RDV in, adding charging infrastructure and all of those things. If Rivian can make conservatively that 30k+ a year in 2023 and Amazon only wants 20k in 2023 then they would have capacity to supply other fleets.

I am sure one could come up with other explanations, window dressing as you say but they have already advertised this in their S1 and the Roadshow video so nothing to lose adding it to the website.

« In September 2019, we entered into an agreement with Amazon under which Amazon has initially ordered 100,000 EDVs, subject to modification as described below under “Certain Relationships and Related Party Transactions.” We expect to produce and deliver at least 10 EDVs in the month of December 2021. We plan to deliver 100,000 EDVs by 2025 and continue our relationship with Amazon thereafter. »

If Amazon only want 20k in 2023, that would make orders at 40k/y for the last 2 years of their commitments…

 

[jjswan33]

« In September 2019, we entered into an agreement with Amazon under which Amazon has initially ordered 100,000 EDVs, subject to modification as described below under “Certain Relationships and Related Party Transactions.” We expect to produce and deliver at least 10 EDVs in the month of December 2021. We plan to deliver 100,000 EDVs by 2025 and continue our relationship with Amazon thereafter. »

If Amazon only want 20k in 2023, that would make orders at 40k/y for the last 2 years of their commitments…

I was incorrect, I thought it was right of first refusal but that is after 4 years its actually exclusive. S1 says contract can be modified only other explanation I can give.

 

[jjswan33]

AFAIK, Amazon has an exclusivity clause for 4 years. Rivian can’t sell EDVs to anyone else — even if Amazon doesn’t want them.

You are correct, just reread the section of the S1.

 

[wizard467]

You are correct, just reread the section of the S1.

The exclusivity section about the four years is in the first paragraph of the EDV Agreement in the S1 (amendment 2 version), but there is a "However" section a few paragraphs down with regard to being able to terminate the EDV agreement which does allow them to sell to third parties before the four years (minimum of 2 years after production starts if Amazon Logistics is purchasing fewer than 10,000):

However, in the event that Logistics terminates the EDV Agreement prior to the purchase of a minimum threshold of an aggregate of 100,000 EDVs or skateboards (except, for the avoidance of doubt, a termination for cause due to our material breach), or if we terminate the EDV Agreement due to Logistics’ failure to order an aggregate of at least 10,000 EDVs or skateboards in each of any two consecutive calendar years following the start of production, Logistics is required to reimburse us for our investment costs in accordance with a reimbursement formula set forth in the EDV Agreement, in addition to other applicable wind-down costs. In addition, we would no longer be bound by the exclusivity provisions set forth in the EDV Agreement with respect to the development, manufacture, and sale of skateboards to third-parties.​

 

[Cassidy_DM]

Not really sure about all the exclusivity issues, but this makes me more confident in investing in the stock.

 

[electrictaco]

Not really sure about all the exclusivity issues, but this makes me more confident in investing in the stock.

Then they’ve accomplished their goal

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