Please ensure Javascript is enabled for purposes of website accessibility

Amazon Expands Road Testing of Rivian Electric Delivery Vans

By Howard Smith - Mar 18, 2021 at 2:18PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

San Francisco is the latest location that will see the electric vans on the road.

Amazon (AMZN 2.57%) revealed today on its official Amazon News Twitter account that it has expanded the testing of its planned fleet of electric delivery vans. Road testing is now beginning in San Francisco, marking the second city after the vans started being utilized in Los Angeles earlier this year. The company plans to have them on the roads of 16 cities by the end of this year. 

The Rivian electric vans are part of Amazon's Climate Pledge investment. Amazon led a $700 million investment round in Rivian in 2019 as part of the Climate Pledge agreement it co-founded. The agreement commits to achieving net-zero carbon emissions by 2040, 10 years earlier than the Paris Accord's plan. Amazon ordered 100,000 electric delivery vans from Rivian to help achieve that goal and plans to have 10,000 of the vehicles in service in 2022, with all 100,000 by 2030. 

Amazon electric delivery van with Golden Gate bridge in background.

Image source: Amazon.

Rivian has raised $8 billion since the start of 2019 to fund its development. The new vehicles have a range of 150 miles on a single charge. Amazon said it has also begun installing thousands of charging stations at its delivery hubs across North America and Europe.

Amazon said it chose San Francisco as one of the first cities to test the Rivian electric vans because of its "great customers, unique terrain and climate," reported CNBC. In addition to the specialty vehicles for Amazon, Rivian plans to manufacture electric pickup trucks and SUV "adventure vehicles" specializing in off-road conditions.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned, Inc. Stock Quote, Inc.
$2,135.50 (2.57%) $53.50

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.