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Rivian stock plunges after news of Amazon-Stellantis deal

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Stellantis introduced on January 5, 2022, a significant partnership with Amazon to attach its automobiles, together with utilizing the US large’s AWS servers and its Alexa voice command system.
Marco Bertorello | AFP | Getty Photographs

Stellantis, the automaker previously often called Fiat Chrysler, stated Wednesday that Amazon will present its in-car dashboard software program and cloud companies. Amazon may even be the primary business buyer of Stellantis’ Ram ProMaster battery-electric car slated for 2023.

The collaboration between the 2 corporations comes two months after Amazon-backed electrical car Rivian debuted on the Nasdaq. Shares of Rivian, which named Amazon its most well-liked cloud supplier in December and has a contract to make 100,000 automobiles for Amazon by 2030, fell as a lot as 9% in Wednesday’s buying and selling session. Stellantis shares had been up 4% in late-day buying and selling.

“We all the time knew that our formidable sustainability objectives in our final mile operations would require a number of electrical supply van suppliers,” an Amazon spokesperson informed CNBC in an electronic mail. ”We proceed to be enthusiastic about our relationship with Rivian, and this does not change something about our funding, collaboration, or order measurement and timing.”

A Rivian R1T electrical pickup truck through the firm’s IPO exterior the Nasdaq MarketSite in New York, U.S., on Wednesday, Nov. 10, 2021.
Bing Guan | Bloomberg | Getty Photographs

Stellantis has already delivered tens of hundreds of automobiles to Amazon since 2018 for last-mile supply in North America and Europe. Stellantis stated it developed the forthcoming Ram ProMaster with enter from Amazon.

Amazon and Stellantis will work collectively on STLA SmartCockpit software program that may seem in hundreds of thousands of automobiles beginning in 2024 as a part of a multi-year cloud deal, in response to an announcement. The service will incorporate Amazon’s Alexa voice assistant, e-commerce, upkeep, navigation and different parts. Stellantis stated it’ll transfer its car information pipeline to a cloud-based system, and that Amazon Internet Providers will change into its most well-liked cloud supplier for car platforms.

Amazon’s market-leading AWS enterprise has sharpened its give attention to industries in an effort to increase inside giant corporations. In November Amazon unveiled AWS IoT FleetWise, a device automakers can use to retailer and refine car information.

WATCH: Stellantis ups full-year goal after robust first half regardless of international chip scarcity

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