Rivian Automotive Inc (NASDAQ:RIVN) shares traded higher on Thursday after it was announced that the electric vehicle (EV) maker will be supplying vehicles for telecommunication giant AT&T Inc. (NYSE:T)'s fleet.
AT&T expects to begin adding the Rivian Commercial Van and R1 vehicles to its fleet starting in early 2024 as part of a pilot program aimed at reducing its transport-related carbon emissions.
The companies also announced that AT&T would be Rivian’s exclusive connectivity provider for its vehicles in the United States and Canada.
With AT&T connectivity, Rivian will use software updates to consistently improve its vehicles with new features that elevate the driving experience for its customers.
“This pilot is another important step in our ongoing efforts toward sustainability, reducing our carbon footprint and embracing a cleaner future for our operations,” AT&T Connective Solutions senior vice president Hardmon Williams said in a statement.
“With advanced connectivity and a vision for a sustainable future, Rivian is setting the standard for the evolving demands of modern transportation.”
Rivian shares gained 8.1% at US$21.28 in early trade on Thursday, while AT&T stock was up 1.6% at US$16.72.