Investors may have overlooked Rivian’s latest electric van customer

Investors may have overlooked Rivian’s latest electric van customer

The hype around RivienIt is (NASDAQ:RIVN) The unveiling of the R2, R3 and R3X recently overwhelmed investors. There is a good reason for this. These more affordable electric vehicles (EVs) could meet considerable demand from new customers and could prove to be the defining moment for the company on the way to profitability.

A recent move from Rivian shouldn’t be overlooked amid all the hype around the R2: it’s another electric van customer, and that’s great news for investors.

Getting into sales

While investors may have focused on the more than 68,000 R2 reservations less than 24 hours after the unveiling, one of the company’s most critical stories will revolve around its electric minivan. This is simply because not only is Rivian still ready to deliver 100,000 vans to Amazon by 2030, the end of their exclusive partnership opens the door to similar customers.

Rivian expects its original plant in Illinois to reach a production capacity of 215,000 vehicles. This leaves plenty of room for growth, as the company’s production forecast for 2024 stands at a paltry 57,000 vehicles.

This means that Rivian could accept many orders for its electric minivan before the company begins producing the R2 crossover in early 2026. One such customer recently came on board, and its unique partnership with Rivian could open up even more doors for the company’s electric van.

What is the problem ?

Before we get into what makes the deal unique, let’s cover the details of the partnership. Morgan Olson is a division of JP Poindexter & Co, which has been manufacturing vans since 1945, and has now been chosen to manufacture electric delivery vans for Canada Post. The best part is that Rivian will provide the platform for these vans.

“We have come to the conclusion that Rivian produces the best, most reliable and most tested EV chassis available,” said John Poindexter, CEO of JPCO, according to FleetOwner.

This deal does several things for investors. First, it shows Rivian’s production flexibility, since the company will help electrify and adjust the platform for use in a right-hand drive vehicle.

Second, it opens the door for companies looking to electrify their vehicles who may not want the full Rivian van, but rather just the platform and battery.

Third, the fact that JPCO visited the factory and was impressed, going so far as to call Rivian the most reliable chassis partner available, lends more credibility to the company’s electric van in the commercial space.

Implementation for 2025

Management noted on conference calls that this year will be filled with pilot programs, testing and negotiations, which could make 2025 a year when Rivian signs many deals with commercial customers for its electric van.

It’s not a stretch to think that within a few years, Rivian’s electric van business could receive as much hype as its upcoming R2 crossover. This partnership with JP Poindexter & Co. could be just the start of a larger partnership, and for investors, we hope it is just the start of a larger partnership. a lot partnerships.

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Investors may have missed Rivian’s new electric van customer was originally published by The Motley Fool

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