<p><strong>Amazon</strong> <span class="ticker-mention inline-flex items-center font-bold">(AMZN <span class="ml-1 text-green-900">+3.01%</span>)</span> has an impeccable track record. The e-commerce specialist leads several industries, generates consistent revenue, earnings, and cash flow, and has delivered market-crushing returns over the long run. But can the company's stock portfolio perform nearly as well? If it does, it may be because of its largest current holding, <strong>Rivian</strong> <span class="ticker-mention inline-flex items-center font-bold">(RIVN <span class="ml-1 text-green-900">+1.60%</span>)</span>, an electric vehicle (EV) maker. A little over 90% of Amazon's public equity portfolio is in this single stock. Should investors also be bullish on Rivian?</p>
<div><img alt="Rivian logo." width="880" height="587" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84NzQ4NjMvcml2aWFuLWxvZ28ucG5nJnc9Mzg0MA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84NzQ4NjMvcml2aWFuLWxvZ28ucG5nJnc9Mzg0MA"/>
<p>Image source: The Motley Fool.</p>
</div>
<h2>A long-standing partnership </h2>
<p>In February 2019, Rivian announced a $700 million investment round led by Amazon. That was more than two and a half years before the EV company went public. What was Amazon's reason behind this move? The e-commerce leader has a massive logistics network, including a fleet of vehicles and delivery drivers. By using EVs for transport and deliveries, the company might reduce fuel (and other) expenses.</p>
<p>That's why it made sense for Amazon to help fund a company like Rivian capable of providing the EVs it needs. Rivian has done exactly that. Amazon now has over 30,000 electric delivery vans on the road, provided to it by its partner. The cloud computing specialist plans to get to at least 100,000 by 2030. Amazon now owns roughly 158.36 million shares of Rivian, making it one of its largest shareholders.</p>
<h2>The retail investing angle </h2>
<p>Investing in Rivian might have made sense for Amazon, but would it also be a good move for average retail investors? On the one hand, there are good reasons to be bullish on the stock. Rivian's first-quarter financial results were pretty strong. The company's revenue increased by 11% year over year to $1.4 billion. That was despite a slowdown in the EV market in the U.S. during the first quarter. </p><div><div id="foolcom_sidebar_top_container"><div><div><div></div><div></div><div></div></div></div><div></div></div></div>
<p>Further, Rivian is launching its new model, the R2. This is especially important since the R2 is a mass-market model with a much more approachable starting price than its previous vehicles. Rivian is looking to make a dent in the large midsize SUV space. <strong>Tesla</strong>'s <span class="ticker-mention inline-flex items-center font-bold">(TSLA <span class="ml-1 text-green-900">+1.18%</span>)</span> Model Y competes in this niche, and it has been the world's best-selling vehicle (EV or not) over the past few years. That's the act Rivian is trying to follow. If it can, expect the company's revenue to soar.</p><div></div>
<section><div><div><div><small><div>Expand</div></small></div><div><img alt="Rivian Automotive Stock Quote" width="64" height="64" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL1JJVk4ucG5nJnc9MTI4?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL1JJVk4ucG5nJnc9MTI4"/></div><div><h2>NASDAQ: RIVN</h2><div>Rivian Automotive</div></div></div><div><div><div>Today's Change</div><div>(1.60%) $0.26</div><div>Current Price</div><div>$16.52</div></div><div></div></div></div><div><div></div><div><h3>Key Data Points</h3><div><div>Market Cap</div><div>$21B</div><div>Day's Range</div><div>$16.03 - $16.61</div><div>52wk Range</div><div>$11.57 - $22.69</div><div>Volume</div><div>31.7M</div><div>Avg Vol</div><div>29.8M</div><div>Gross Margin</div><div>-441.39%</div></div></div></div></section>
<p>Then there is Rivian's attempt to reach level 4 self-driving (when cars can drive themselves with no human intervention). The company made a deal with <strong>Uber Technologies</strong> <span class="ticker-mention inline-flex items-center font-bold">(UBER <span class="ml-1 text-green-900">+1.03%</span>)</span> to provide the ride-hailing giant with a fleet of self-driving robotaxis to be rolled out in various cities starting in 2028. If Rivian meets the timeline outlined in this deal, it could secure up to $1.25 billion in investments from Uber. Just as important, Rivian might establish itself as a leader in the autonomous vehicle market and secure deals with other corporations. That's the bull case for the company, one that could lead to excellent returns if it materializes.</p><div><div id="in_line_article_pitch_container"><div><div><div><div></div></div><div><div></div><div></div><div></div></div></div></div><div></div></div></div>
<p>However, Rivian's shares have declined by 13% this year for a reason: Despite massive upside potential, the stock carries significant risks. The recent slowdown in the EV market may affect the company's launch of the R2, for instance. And although it was able to escape it during the first quarter, it did so because it sold a higher mix of commercial vans during that period, as it continues to fulfill its long-term contract with Amazon. These vans carry a lower average unit price and could eventually squeeze the company's margins.</p>
<p>That's why the R2 is so important, and if its launch flops -- perhaps because of recent weakness in the industry -- Rivian will be in trouble. Further, the company might fail to achieve full self-driving capabilities. That would put its deal with Uber in jeopardy. All these factors (and others) are worth considering before initiating a position in Rivian. My view is that the stock could be a great pick for contrarian investors who are comfortable with volatility -- and there will be plenty of that regardless of which way the stock moves. But risk-averse investors should look elsewhere.</p><div id="article_pitch_container"><div><div><div></div><div></div><div></div><div></div><div></div><div></div><div></div></div></div><div></div></div><div id="promobox_container"><div><div><div></div><div></div><div></div><div></div></div></div><div></div></div>

RIVN

AMZN

UBER

<p>Amazon holds over 90% of its public equity portfolio in Rivian, driven by a strategic partnership for electric delivery vans. While Rivian shows strong Q1 revenue growth and plans to launch the mass-market R2 model and autonomous robotaxis with Uber, it faces significant risks including EV market slowdowns and margin pressures. The stock is deemed suitable only for contrarian investors comfortable with high volatility.</p>

- Amazon holds a significant stake in Rivian, investing heavily to support its electric vehicle supply, which aids Amazon's logistics operations.  
- Rivian's potential growth, driven by strong revenue figures and a new mass-market vehicle, presents opportunities, but significant risks remain, including market fluctuations and development challenges.  
- Investors should weigh these factors, as Rivian may offer upside for those willing to embrace volatility, while risk-averse individuals might consider alternative investments.

90% of Amazon's Portfolio Is Invested in This EV Stock (Hint: It's Not Tesla)