Rivian stock jumps 14% as AT&T plans to use automaker's electric vehicles starting in 2024

Takeaways

AT&T announced it would buy electric vehicles (EVs) from Rivian as the telecom giant aims to become carbon neutral by 2035.
The ;deal will see AT&T purchase Rivian's commercial vans, already used by Amazon, as well as its R1 electric vehicles.
AT&T will also be the exclusive connectivity provider for Rivian vehicles in the US and Canada.
News of the deal helped Rivian's power shares rise.

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

The telecoms giant has announced that it will purchase Rivian electric vehicles (EVs) for its fleet as part of a pilot program launching early next year. AT&T explained that it would “begin to evaluate the different ways these vehicles help improve safety, reduce costs and reduce its carbon footprint.”

The announcement stated that AT&T would use Rivian commercial vans and R1 vehicles. The number of electric vehicles AT&T would purchase was not disclosed.

In addition, AT&T indicated that it would be the exclusive connectivity provider for all Rivian electric vehicles in the United States and Canada, offering drivers over-the-air software updates “to constantly improve its vehicles with new features that improve the driving experience of its customers."

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

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