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Amazon just started a delivery van war
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Amazon just started a delivery van war

The Rise of Electric Delivery Vans

This section introduces the significance of electric delivery vans in the EV market and the collaboration between Amazon and Stellantis.

The Importance of Delivery Vans in the EV Market

  • Electric delivery vans are becoming a priority for auto manufacturers due to their high demand.
  • Amazon's CEO, Jeff Bezos, has shown a keen interest in expanding his fleet with electric delivery vehicles.

Collaboration Between Amazon and Stellantis

  • On January 5th, Amazon announced its collaboration with Stellantis to manufacture thousands of EV delivery vehicles for Bezos' fleet.
  • This partnership had an immediate negative impact on Rivian Motors, as Amazon is a major investor in Rivian.

The Impact on Rivian and Competing with Legacy Auto Makers

This section explores the implications of Amazon's collaboration with Stellantis on Rivian and discusses the competition faced by Rivian from legacy auto makers.

Implications for Rivian

  • Despite being a major investor in Rivian, Amazon's shift towards collaborating with Stellantis has caused Wall Street enthusiasm for Rivian to decline.
  • It raises questions about whether Rivian can compete effectively now that legacy auto makers are entering the EV market.

Introduction to Stellantis

  • Stellantis is a multinational automotive conglomerate representing 14 different brands, including Dodge, Alfa Romeo, and Maserati.
  • It is one of the largest automakers globally and recently formed through a merger.

The Role of Amazon in Rivian's Success

This section highlights Amazon's significant investment in Rivian and its impact on bringing the R1T pickup truck to market.

Investment in Rivian

  • Amazon has invested over a billion dollars in Rivian, which played a crucial role in the development and launch of the R1T pickup truck.
  • As part of the investment agreement, Rivian is obligated to produce a hundred thousand delivery vans for Amazon by 2025.

Rivian's Successful IPO

  • Rivian's impressive numbers of R1T pre-orders and the massive order from Amazon led to a successful initial public offering (IPO) in November.

Decline in Rivian's Stock Prices

This section discusses the decline in Rivian's stock prices following its IPO and the impact of Stellantis' entry into the market.

Stock Price Drop

  • After peaking at $172 per share shortly after going public, Rivian's stock prices have significantly dropped.
  • The decline can be attributed to Stellantis' emergence as a strong competitor in the electric van market.

Introduction to Stellantis

  • Stellantis is a relatively new company formed through a merger and represents several well-known automotive brands.
  • It provides commercial vehicles to Amazon since 2018 and recently announced collaboration on vehicle software with them.

The Role of Stellantis and Vehicle Software Collaboration with Amazon

This section delves into Stellantis' role as an automotive conglomerate and its collaboration with Amazon on vehicle software.

Introduction to Stellantis

  • Stellantis is a Netherlands-based multinational automotive conglomerate representing various brands, including Dodge, Alfa Romeo, and Maserati.
  • It is one of the largest automakers globally and was formed through a recent merger.

Collaboration on Vehicle Software

  • Amazon has been working with Stellantis since 2018, providing thousands of commercial vehicles.
  • The recent collaboration focuses on vehicle software, including in-car dashboard software and cloud services.
  • The platform, called the STLA smart (beep) pit, will integrate AI-enhanced and Alexa-enabled voice assistance for a personalized in-vehicle experience.

Amazon's Last Mile Program and Incentives for EV Fleet Transition

This section explores Amazon's last mile program and the incentives for transitioning to an all-electric vehicle fleet.

Importance of Last Mile Delivery

  • Amazon's last mile delivery program accounts for 53% of its shipment expenses.
  • Bezos aims to expand his fleet with hundreds of thousands more vehicles by 2030.

Incentives for EV Fleet Transition

  • Besides environmental benefits, electric vehicles can cost 10 to 40% less than gas-powered vehicles in the long run.
  • This cost-saving potential serves as a significant incentive for Bezos to transition to an all-electric fleet quickly.

Stellantis Deal and Rivian's R1T Truck

This section discusses the Stellantis deal with Amazon and provides insights into Rivian's R1T truck.

Stellantis' Battery Electric Ram ProMaster

  • Stellantis will produce a battery electric Ram ProMaster for Amazon, making them the first commercial customer.

Features of the ProMaster

  • The ProMaster is expected to have a range of around 200 miles and will include features like active driving assist, a 360-degree camera, traffic sign recognition, full-speed forward collision warning, and drowsiness detection.

Rivian Investors' Concerns

  • Some investors were concerned about Stellantis' involvement in producing delivery vans for Amazon instead of Rivian. However, it makes sense for Amazon to have multiple manufacturing partners due to their high volume of deliveries.

Rivian's Revolutionary Pickup Truck

  • Rivian's R1T pickup truck impressed investors and reviewers with its performance and handling. It received positive feedback from Edmunds and MotorTrend. Only a small number of pre-orders have been delivered so far, but as more trucks hit the streets, people can judge their performance firsthand.

Driving Experience of the R1T

  • The R1T offers practicality over gimmicky tech, with user-friendly touchscreen displays and impressive power. It has unique features like heartbeat blinkers that create a sound inspired by the human heart. Overall, the driving experience is memorable and worth considering.

Exciting Future for Rivian

  • Despite concerns about the Stellantis deal, there is still plenty to be excited about when it comes to Rivian. They plan to expand production capacity and open a second plant in Georgia by 2024. Amazon's investment and collaboration with Rivian remain strong.

Conclusion

  • The Stellantis deal should not be seen as a threat to Rivian's success. With Amazon's significant demand for electric delivery vans, Rivian still has the potential to generate substantial revenue. This year promises exciting developments in the EV market, including the release of thrilling vehicles like the R1T.
Video description

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