Why Rivian Automotive Shares Are Trading Lower Today

Amazon.com, Inc. (NASDAQ: AMZN) and Rivian Automotive, Inc. (NASDAQ:RIVN) is in the news for scrapping the exclusivity portion of its electric-van deal.
Rivian may start selling others after Amazon orders for 2023, The Wall Street Journal reports,
Rivian is required to sell all of its vans to Amazon as part of the 2019 deal.
Most recently, Amazon ordered about 10,000 vans this year, at the low end of the range previously provided by the automaker. In response, Rivian sought to terminate the terms of exclusivity.
According to FactSet, Amazon is Rivian’s largest shareholder, with a 17% stake in the company, and Amazon is on Rivian’s board.
Amazon has introduced cost-saving measures over the past year as the pandemic’s recovery and macroeconomic uncertainties hit its business. Amazon shared plans to stop construction on its second headquarters In the DC area, more than 18,000 workers were laid off.
For Rivian, the exclusivity deal has provided steady demand for one of three vehicles the automaker builds at its usual, ailing, factory.
The end of exclusivity would mark the latest challenge for Rivian, which has been under pressure to cut costs and boost factory production.
Price Action: At last check Monday, RIVN shares traded down 1.02% at $14.02.
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