Thread by @EdLudlow

NEW: Amazon Shapes Rivian’s EV Future and Hope for $80 Billion IPO $AMZN $RIVN.

@KeithNaughton
and I report on how Rivian is now priotising Amazon's van in what's a key program for both companies. 1/

bloomberg.com/news/articles/…

NEW: Internally, the $AMZN van is now the priority for Rivian. After putting 1MN miles of validation testing on R1T pickups in Aug., then starting production, the startup is shifting all efforts/energy to get the van started. The aim: to deliver 300 vans to $AMZN by year-end. 2/

We don't know the $ value of the $RIVN $AMZN deal between but @PitchBook and @BloombergNEF estimate its around $4.5 billion for the 100,000 vans. The agreement includes recurring revenues for software updates, diagnostics (fleet management), sources say 3/

How about that $80 billion $RIVN valuation? According to sources, the number is based largely on Amazon's investment in and order for Rivian's vans. 4/

How did #JeffBezos find Rivian? In mid-2018, Rivian hired Pete Berg's production company (film director/Bezos acquaintance) that in turn used Black Ops Aviation, owned by Lauren Sanchez, to shoot aerial footage. Through those interactions with Rivian, word got back to Bezos 5/

We know the $RIVN deal gives Amazon exclusivity (4 years) and right of first refusal (6 years) on the vans. BUT, analysts also see Amazon lending credibility and opening doors for Rivian no other OEM has, including more business for its delivery vans. 6/