Rivian Stock Jumps 14% as AT&T Plans to Use Carmaker's EVs Starting in 2024

Key Takeaways

• AT&T announced that it will buy electric vehicles (EVs) from Rivian as the telecom giant targets becoming carbon neutral by 2035.
• The deal will see AT&T purchase Rivian's commercial vans, already in use by Amazon, as well as its R1 EVs.
• AT&T will also be the exclusive connectivity provider for Rivian vehicles in the U.S. and Canada.
• News of the deal helped shares of Rivian power higher.

You may have already seen them delivering Amazon (AMZN) packages, but Rivian Automotive (RIVN) commercial vans will soon be put to work by AT&T (T).

The telecom giant announced that it will be purchasing Rivian electric vehicles (EVs) for its fleet in a pilot program launching early next year. AT&T explained that it would "begin evaluating the various ways these vehicles help improve safety, reduce costs and cut its carbon footprint."

The announcement noted that AT&T would be using Rivian's commercial vans and R1 vehicles. The number of EVs AT&T would be buying was not disclosed.

In addition, AT&T noted that it will be the exclusive provider of connectivity for all of Rivian's EVs in the U.S. and Canada, giving drivers over-the-air software updates "to consistently improve its vehicles with new features that elevate the driving experience for its customers."

Hardmon Williams, senior vice president of Connected Solutions at AT&T, said the pilot program "is another important step in our ongoing efforts toward sustainability, reducing our carbon footprint and embracing a cleaner future for our operations." AT&T is targeting carbon neutrality by 2035.

The news helped Rivian Automotive shares into positive territory for the year. The stock finished Thursday's session up 14% at $22.43.

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