Rivian's stock falls more than 3% as EV maker and Amazon consider changes to electric-van deal

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PPG Industries, Inc. manufactures and distributes a range of paints, coatings, and specialty materials. The Company operates through two segments: Performance Coatings and Industrial Coatings. The Performance Coatings segment primarily supplies a range of protective and decorative coatings, sealants and finishes along with pavement marking products, paint strippers, stains, and related chemicals, as well as transparencies and transparent armor. The Industrial Coatings segment primarily supplies a range of protective and decorative coatings and finishes along with adhesives, sealants, metal pretreatment products, optical monomers and coatings, low-friction coatings, precipitated silicas, and other specialty materials. Its Performance Coatings brands include PPG, GLIDDEN, COMEX, OLYMPIC, DULUX, SIGMA, HISTOR, SEIGNEURIE, PEINTURES GAUTHIER, and JOHNSTONE'S, among others. Its Industrial Coatings brands include PPG and TESLIN. It supplies its products to customers in an array of end-uses.

Rivian's stock falls more than 3% as EV maker and Amazon consider changes to electric-van deal

11:47 am ET March 13, 2023 (MarketWatch) Print

By Claudia Assis

Amazon is Rivian's biggest shareholder and an early backer of the electric-vehicle maker

Rivian Automotive Inc.'s stock fell more than 3% Monday after news that the electric-vehicle maker and Amazon.com Inc. are discussing possible changes to their deal for electric delivery vans.

Citing people familiar with the matter, the Wall Street Journal reported Monday that the companies are in talks to end the exclusivity part of their electric-van deal. The talks started after Amazon's order for this year was at the low end of the previous range, the report said.

A Rivian (RIVN) spokesperson said the two companies are in discussions. "We continue to work closely together and are navigating a changing economic climate, similar to many companies," she said. "The relationship we have with Amazon is a very positive one."

Rivian and Amazon (AMZN) inked a deal in 2019 to sell all of the EV maker's last-mile delivery vans to Amazon, which was building up its own last-mile delivery systems in an effort to rely less on logistics companies such as FedEx Corp. (FDX) and United Parcel Service Inc. (UPS).

Amazon invested $700 million in Rivian as one of the EV maker's major early backers. It is Rivian's biggest shareholder, according to FactSet, with a 17% stake worth more than $2 billion.

Rivian has been under pressure to rev up production and cut costs, and last month the company disappointed Wall Street by missing revenue expectations for its fourth quarter and revealing struggles with parts shortages and other manufacturing hiccups.

Rivian shares have lost 63% in the last 12 months, compared with losses of around 7% for the S&P 500 .

-Claudia Assis

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

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March 13, 2023 11:47 ET (15:47 GMT)