Rivian is renegotiating its exclusivity deal with Amazon for EV delivery trucks

Rivian And Amazon A company spokeswoman said Monday that discussions are underway to adjust the exclusivity of their agreement for the EV maker’s electric delivery trucks.

Eliminating the agreement’s exclusivity will allow Rivian to entice new customers as it works to ramp up production of vans and its R1 series pickups and SUVs. The company is also working on the upcoming R2 model and is in need of cash. Last week, Rivian announced plans raise $1.3 billion To help fund the development and launch of R2 through the sale of convertible notes.

Rivian spokeswoman Marina Norville said in a statement that the company’s relationship with Amazon has been and will continue to be positive.

“We continue to work closely together, and like many companies, are navigating the changing economic environment,” she said.

Rivian and Amazon struck a deal in 2019 to hand over 100,000 electric trucks to the e-commerce giant. Amazon started delivering package with vehicles in July and Rivian last month 10 lakh package announced Delivered via van.

But Amazon, Rivian’s largest shareholder, has since been overwhelmed by its order numbers, telling Rivian it wants to buy about 10,000 vehicles this year — the lower end of a previously reported range, according to wall street journalwhich first reported discussions to end the exclusivity.

Amazon said in a statement to CNBC that 10,000 vehicles was the original commitment, and there have been no changes to its order volumes or its partnership with Rivian.

“While nothing has changed in our agreement with Rivian, we have always said that we want others to benefit from their technology in the long run because more electric delivery vehicles on the road is good for our communities and our planet, said an Amazon spokesperson.

Rivian’s shares fell nearly 3% in early trading Monday.

—CNBC’s Annie Palmer and John Rosevear contributed to this report.