Rivian stock plunges after news of Amazon-Stellantis deal

Rivian stock plunges after news of Amazon-Stellantis deal

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Carlos Tavares Chairman of the Management Board of PSA group and CEO of Stellantis, Carlos Tavares answers journalists’ questions after a private visit at the plant of Dutch multinational automotive manufacturing company Stellantis, part of the PSA group in Douvrin, on July 2, 2021.
Denis Charlet | AFP | Getty Images

Stellantis, the automaker formerly known as Fiat Chrysler, said Wednesday that Amazon will provide its in-car dashboard software and cloud services. Amazon will also be the first commercial customer of Stellantis’ Ram ProMaster battery-electric vehicle slated for 2023.

The collaboration between the two companies comes two months after Amazon-backed electric vehicle Rivian debuted on the Nasdaq. Shares of Rivian, which named Amazon its preferred cloud provider in December and has a contract to make 100,000 vehicles for Amazon by 2030, fell as much as 9% in Wednesday’s trading session. Stellantis shares were up 4% in late-day trading.

Stellantis has already delivered tens of thousands of vehicles to Amazon since 2018 for last-mile delivery in North America and Europe. Stellantis said it developed the forthcoming Ram ProMaster with input from Amazon.

Amazon and Stellantis will work together on STLA SmartCockpit software that will appear in millions of vehicles starting in 2024 as part of a multi-year cloud deal, according to a statement. The service will incorporate Amazon’s Alexa voice assistant, e-commerce, maintenance, navigation and other elements. Stellantis said it will move its vehicle data pipeline to a cloud-based system, and that Amazon Web Services will become its preferred cloud provider for vehicle platforms.

Amazon’s market-leading AWS business has sharpened its focus on industries in an effort to expand inside large companies. In November Amazon unveiled AWS IoT FleetWise, a tool automakers can use to store and refine vehicle data.

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