Rivian (RIVN) shares soared Thursday after the electric truck maker announced a new commercial customer for its trucks. Its shares rose about 14% an hour before the market closed.
Rivian and AT&T (T) announced a deal under which the telecommunications giant will purchase Rivian vans and R1 vehicles for its commercial fleet. AT&T said the vehicles were being purchased as part of a pilot program aimed at reducing emissions from transportation vehicles. Rivian declined to say how many vehicles AT&T will buy, nor did it disclose the financial impact of the deal.
“We are pleased to purchase Rivian electric vehicles for our fleet. This pilot is another important step in our ongoing efforts to achieve sustainability, reduce our carbon footprint and create a cleaner future for our operations,” said Hardmon Williams, senior vice president of Connected Solutions at AT&T, in a statement.
A model of an AT&T electric delivery truck built by Rivian. (AT&T) (AT&T)
“About a quarter of the CO2 emitted by the U.S. transportation sector comes from commercial vehicles, so it is imperative that we do everything we can as quickly as possible to help reduce emissions,” said Dagan Mishoulam, strategy and fleets -Vice President of Rivian, in a statement. “We look forward to expanding our relationship with AT&T to help them achieve their climate goals.”
Just last month, Rivian announced in its third-quarter earnings report that it would no longer have to sell its electric delivery truck exclusively to Amazon, a Rivian shareholder. Rivian still plans to build 100,000 delivery trucks for Amazon under a previous agreement and has already delivered 10,000 trucks to the online shopping giant.
In addition to the fleet purchase, Rivan and AT&T announced that AT&T will be Rivian's exclusive provider of Internet connectivity for all Rivian commercial vehicles in the United States and Canada. Rivian says it will use AT&T's wireless network to provide over-the-air updates to its vehicles in the field.
Driver David Gonzalez walks back to his truck after making a delivery in an Amazon Rivian Electric truck in Poway, California, November 16, 2022. (Sandy Huffaker/Portal) (Portal / Portal)
Rivian stock has been on an upward trend lately, rising over 34% in the last three months and nearly 20% for the year. Rivian raised its full-year production forecast to 54,000 from 52,000 units last month. The previous forecast of 52,000 units was raised from 50,000 earlier this year.
The story goes on
“Due to progress on our production lines, ramp-up of our in-house engine line and supply chain outlook, we are increasing our 2023 production guidance to a total of 54,000 units,” the company said in its third-quarter letter to shareholders.
In addition to increasing production, the company announced its long-awaited leasing program is available on select R1T pickups. The launch of the leasing program means the company can now pass on the $7,500 Commercial Electric Vehicle Tax Credit to lessees without regard to the income thresholds required for the Electric Vehicle Tax Credit for the purchase. Rivan said lease packages would start at $899/month for 36 months, with $6,794 due at signing.
Pras Subramanian is a reporter for Yahoo Finance. You can keep following him Twitter and on Instagram.
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