Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

AT&T to buy Rivian electric vehicles in pilot deal to cut cost, emissions

Published 12/14/2023, 08:05 AM
Updated 12/14/2023, 08:11 AM
© Reuters. FILE PHOTO: A Rivian Automotive Inc facility is pictured in Costa Mesa, California, U.S.,November 1, 2023.     REUTERS/Mike Blake/File Photo
T
-
AMZN
-
RIVN
-

By Abhirup Roy

SAN FRANCISCO (Reuters) - U.S. wireless carrier AT&T (NYSE:T) will purchase some electric vehicles from startup Rivian (NASDAQ:RIVN) in a pilot program to evaluate ways to reduce cost, cut carbon emissions and improve safety, the companies said on Thursday.

The deal is the first for Rivian after the company last month ended its exclusivity pact with largest shareholder Amazon (NASDAQ:AMZN) for its delivery vans, opening the door for more customers.

AT&T expects to start adding Rivian electric commercial vans, R1T pickup trucks, and R1S sport utility vehicles in its fleet in early 2024, they said in a statement.

The companies did not disclose the number of vehicles AT&T will buy or the financial terms of the deal.

AT&T has long been investing in converting its commercial fleet to vehicles that use alternative fuels such as compressed natural gas and hybrid electric vehicles.

"This pilot is another important step in our ongoing efforts toward sustainability, reducing our carbon footprint and embracing a cleaner future for our operations," Hardmon Williams, senior vice president of AT&T Connected Solutions said.

Environmental, social and corporate governance (ESG) goals and emission reduction targets for companies have sparked a race to shift to zero-emission fleets.

But high interest rates have made it costlier for customers to purchase electric vehicles, which that are typically more expensive than their gas-powered counterparts, and raised worries of a slowdown in demand.

Still, Rivian has said it has seen a "lot of interest and demand" for its vans beyond Amazon. On Thursday, the company declined to disclose other potential customers.

© Reuters. FILE PHOTO: A Rivian Automotive Inc facility is pictured in Costa Mesa, California, U.S.,November 1, 2023.     REUTERS/Mike Blake/File Photo

It has also reiterated its commitment to fulfilling an order for 100,000 vans to Amazon by 2030. Amazon said in October it has 10,000 of those vehicles across the U.S. and Europe.

Last month, Irvine, California-based Rivian raised its overall 2023 production forecast to 54,000 units.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.