News
Rivian’s Amazon EV delivery van will drop packages in 100 cities by end of 2022
Amazon announced this morning that its Rivian Electric Delivery Vans (EDVs) will make deliveries in over 100 cities across the United States by the end of the year. Rivian plans to have EDVs operational in 100,000 U.S. cities by 2030.
Amazon and Rivian have collaborated on sustainable electric delivery vehicles since 2019, with pilot deliveries occurring over the past year. The pilot program accumulated over 90,000 miles of real-world testing and resulted in 430,000 package deliveries.
Rivian’s electric Amazon Delivery Van starts deliveries in San Francisco as testing continues
Finally, deliveries in production models of the Rivian EDV are set to expand to over 100 cities in the U.S. by the end of the year, including Baltimore, Chicago, Dallas, Kansas City, Nashville, Phoenix, San Diego, Seattle, and St. Louis, among other cities,” the e-commerce giant said. “This rollout is just the beginning of what is expected to be thousands of Amazon’s custom electric delivery vehicles in more than 100 cities by the end of this year—and 100,000 across the U.S. by 2030.”
Amazon ordered 100,000 Rivian EDVs in its initial order and has stood behind the EV startup in alignment with its Climate Pledge – a commitment to reach net-zero carbon across our operations by 2040. The Rivian vans, along with more sustainable packaging, helps Amazon decarbonize its last-mile logistics.
“Fighting the effects of climate change requires constant innovation and action, and Amazon is partnering with companies who share our passion for inventing new ways to minimize our impact on the environment. Rivian has been an excellent partner in that mission, and we’re excited to see our first custom electric delivery vehicles on the road,” Andy Jassy, CEO of Amazon, said. “Today marks a significant milestone in our Climate Pledge commitment. Rivian was one of the first companies Amazon invested in through the Climate Pledge Fund, and we’re just getting started on our journey to have 100,000 of Rivian’s vehicles on the road by 2030. And, in addition to being sustainable, these new vehicles are also great for drivers—they were designed with driver input and feedback along the way, and they’re among the safest and most comfortable delivery vehicles on the road today.”
Rivian builds its vehicles in Normal, Illinois. Along with the EDV, it builds the R1T, an all-electric truck, and R1S, an all-electric SUV.
“Today represents an important step, not just for Amazon and Rivian as partners, but also for transportation and the environment,” RJ Scaringe said, CEO of Rivian. “In 2019, Rivian and Amazon committed to fast-tracking a new type of delivery vehicle that would result in a significant reduction of carbon emissions. Thanks to our teams’ dedication, hard work and collaboration, and a shared commitment to make the world a better place for our kids’ kids, that vision is now being realized. To say this is an exciting moment is an understatement—we’re thrilled to see this partnership has kickstarted decarbonization projects across the logistics delivery industry.”
The Rivian EDV is also set to transition to an LFP battery pack as it fits commercial applications well and can be built at a cheaper cost. Along with that, our standard battery pack is leveraging LFP and LFP chemistry, and that chemistry not only allows us to offer that pack at a lower cost, but it really fits commercial applications well. And it’s first going to be launched in the commercial vehicle platform later this year, and then will make its way into our consumer vehicles by late 2023,” Scaringe said during the Q4 2021 Earnings Call.
Rivian hits EV Startup road bumps
Rivian has been a subject of normal EV startup road bumps in recent memory, becoming one of many companies to cut its employee headcount. Additionally, the company has struggled with margins and profitability early, which is expected. However, the automaker adjusted its 2022 production guidance earlier this year from 40,000 units to just 25,000. Rivian reaffirmed its commitment to this goal earlier in July.
The company’s financial situation is currently similar to what Tesla faced early in its production phases. CEO Elon Musk recently advised the company to cut costs in any way possible or it could face potential closure.
“That affordability threshold is very important,” Musk said in June. “It must both be a good value for money and be affordable in order to achieve good unit volumes. And where car companies can get, kind of, painted into a corner of doom is: If the cost of a car is so high that they have to raise the price of the car to the point where the price of the car is…and Rivian, I think, has this problem, you know, they’re going to need to fix it, or they’re in deep trouble…they raise the price to the point where only a very small number of people can afford the car, no matter how desirable it is. Then, at that point, if you cannot achieve a unit volume that covers your fixed costs, you’re screwed.”
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Elon Musk
SpaceX issues statement on Starship V3 Booster 18 anomaly
The incident unfolded during gas-system pressure testing at the company’s Massey facility in Starbase, Texas.
SpaceX has issued an initial statement about Starship Booster 18’s anomaly early Friday. The incident unfolded during gas-system pressure testing at the company’s Massey facility in Starbase, Texas.
SpaceX’s initial comment
As per SpaceX in a post on its official account on social media platform X, Booster 18 was undergoing gas system pressure tests when the anomaly happened. Despite the nature of the incident, the company emphasized that no propellant was loaded, no engines were installed, and personnel were kept at a safe distance from the booster, resulting in zero injuries.
“Booster 18 suffered an anomaly during gas system pressure testing that we were conducting in advance of structural proof testing. No propellant was on the vehicle, and engines were not yet installed. The teams need time to investigate before we are confident of the cause. No one was injured as we maintain a safe distance for personnel during this type of testing. The site remains clear and we are working plans to safely reenter the site,” SpaceX wrote in its post on X.
Incident and aftermath
Livestream footage from LabPadre showed Booster 18’s lower half crumpling around the liquid oxygen tank area at approximately 4:04 a.m. CT. Subsequent images posted by on-site observers revealed extensive deformation across the booster’s lower structure. Needless to say, spaceflight observers have noted that Booster 18 would likely be a complete loss due to its anomaly.
Booster 18 had rolled out only a day earlier and was one of the first vehicles in the Starship V3 program. The V3 series incorporates structural reinforcements and reliability upgrades intended to prepare Starship for rapid-reuse testing and eventual tower-catch operations. Elon Musk has been optimistic about Starship V3, previously noting on X that the spacecraft might be able to complete initial missions to Mars.
Investor's Corner
Tesla analyst maintains $500 PT, says FSD drives better than humans now
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Tesla (NASDAQ:TSLA) received fresh support from Piper Sandler this week after analysts toured the Fremont Factory and tested the company’s latest Full Self-Driving software. The firm reaffirmed its $500 price target, stating that FSD V14 delivered a notably smooth robotaxi demonstration and may already perform at levels comparable to, if not better than, average human drivers.
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Analysts highlight autonomy progress
During more than 75 minutes of focused discussions, analysts reportedly focused on FSD v14’s updates. Piper Sandler’s team pointed to meaningful strides in perception, object handling, and overall ride smoothness during the robotaxi demo.
The visit also included discussions on updates to Tesla’s in-house chip initiatives, its Optimus program, and the growth of the company’s battery storage business. Analysts noted that Tesla continues refining cost structures and capital expenditure expectations, which are key elements in future margin recovery, as noted in a Yahoo Finance report.
Analyst Alexander Potter noted that “we think FSD is a truly impressive product that is (probably) already better at driving than the average American.” This conclusion was strengthened by what he described as a “flawless robotaxi ride to the hotel.”
Street targets diverge on TSLA
While Piper Sandler stands by its $500 target, it is not the highest estimate on the Street. Wedbush, for one, has a $600 per share price target for TSLA stock.
Other institutions have also weighed in on TSLA stock as of late. HSBC reiterated a Reduce rating with a $131 target, citing a gap between earnings fundamentals and the company’s market value. By contrast, TD Cowen maintained a Buy rating and a $509 target, pointing to strong autonomous driving demonstrations in Austin and the pace of software-driven improvements.
Stifel analysts also lifted their price target for Tesla to $508 per share over the company’s ongoing robotaxi and FSD programs.
Elon Musk
SpaceX Starship Version 3 booster crumples in early testing
Photos of the incident’s aftermath suggest that Booster 18 will likely be retired.
SpaceX’s new Starship first-stage booster, Booster 18, suffered major damage early Friday during its first round of testing in Starbase, Texas, just one day after rolling out of the factory.
Based on videos of the incident, the lower section of the rocket booster appeared to crumple during a pressurization test. Photos of the incident’s aftermath suggest that Booster 18 will likely be retired.
Booster test failure
SpaceX began structural and propellant-system verification tests on Booster 18 Thursday night at the Massey’s Test Site, only a few miles from Starbase’s production facilities, as noted in an Ars Technica report. At 4:04 a.m. CT on Friday, a livestream from LabPadre Space captured the booster’s lower half experiencing a sudden destructive event around its liquid oxygen tank section. Post-incident images, shared on X by @StarshipGazer, showed notable deformation in the booster’s lower structure.
Neither SpaceX nor Elon Musk had commented as of Friday morning, but the vehicle’s condition suggests it is likely a complete loss. This is quite unfortunate, as Booster 18 is already part of the Starship V3 program, which includes design fixes and upgrades intended to improve reliability. While SpaceX maintains a rather rapid Starship production line in Starbase, Booster 18 was generally expected to validate the improvements implemented in the V3 program.
Tight deadlines
SpaceX needs Starship boosters and upper stages to begin demonstrating rapid reuse, tower catches, and early operational Starlink missions over the next two years. More critically, NASA’s Artemis program depends on an on-orbit refueling test in the second half of 2026, a requirement for the vehicle’s expected crewed lunar landing around 2028.
While SpaceX is known for diagnosing failures quickly and returning to testing at unmatched speed, losing the newest-generation booster at the very start of its campaign highlights the immense challenge involved in scaling Starship into a reliable, high-cadence launch system. SpaceX, however, is known for getting things done quickly, so it would not be a surprise if the company manages to figure out what happened to Booster 18 in the near future.
SpaceX issues statement on Starship V3 Booster 18 anomaly
Tesla analyst maintains $500 PT, says FSD drives better than humans now
