Rivian Opens Up Commercial Van Orders, Expanding EV Business
Introduction
Rivian (RIVN) has expanded its reach into the commercial van market, opening up orders beyond its initial launch partners. This move creates a potential growth opportunity for the electric vehicle (EV) maker.
Rivian's Commercial Van
Rivian's commercial van is based on the same platform as its electric delivery van for Amazon (AMZN). It comes in two sizes: the 500 and 700. The 500 offers more payload capacity but less cargo space, while the 700 has the opposite characteristics. Both vans start at $79,900 and $83,900, respectively.
Growing Market
The commercial van industry is a significant market, with Mercedes Sprinter and Ford Transit vans dominating the segment. Both companies also offer electric versions, catering to increasing demand for EVs for short-haul deliveries. Global Market Insights projects the market to double by 2034, driven by growth in e-commerce logistics.
Opportunity for Rivian
Rivian's entry into the commercial van market presents a major opportunity. The company has tested its vans with large fleet operators like AT&T and is now ready to accept orders from other fleet-based businesses. Wedbush analyst Dan Ives believes this move expands Rivian's market potential in the commercial EV segment.
Competition
Rivian faces competition from established players like Ford and Mercedes. Ford has seen strong sales of its E-Transit van, while Mercedes recently launched its eSprinter in the U.S. market. However, Rivian's focus on electric-only vehicles could give it an advantage in the growing EV market.
Outlook
Rivian's commercial van expansion is a positive step for the company. The growing e-commerce industry and the increasing demand for EVs in last-mile delivery present significant opportunities. Investors should watch for Rivian's upcoming earnings report for updates on the commercial van business and overall performance.