JMP Securities analyst Nicholas Jones says it is possible for Amazon.com (AMZN) to save more than $20B annually by deploying autonomous technology combined with electric combination trucks for middle-mile transport and replacing internal combustion engine delivery vans with electric Rivian Automotive (RIVN) delivery vans. Fuel cost tends to be 25%-30% of the per mile costs in middle-mile and last-mile delivery, while electric vehicles can generate a nearly 50% reduction in per-mile energy costs, the analyst tells investors in a research note. JMP views this as a medium- to long-term opportunity for Amazon. More near term, as the company converts its last-mile fleet to electric Rivian fans, there is potential for up to $7B of annual savings, globally, contends the firm. Amazon has deployed 15,000 Rivian vans in the U.S. and thousands across Europe, according to JMP. The firm has an Outperform rating on Amazon with a $265 price target.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on AMZN:
- Amazon announces discounts, deals during Prime Big Deal Days
- Morgan Stanley ‘bullish’ on Amazon into 2025, sees tactical risk to Q4 EBIT view
- Ulta Beauty price target lowered to $390 from $395 at TD Cowen
- Amazon.com exec sells $646.8K in common stock
- Large U.S. consumer names modestly higher afterhours as port strike ends