Amazon (AMZN) takes $3.9 billion writedown in Q2 2022 on Rivian (RIVN) investment

Amazon’s (AMZN) Q2 2022 earnings report landed earlier today and showed that the company beat on revenue and EPS expectations. However, there was a bit more to the story than just those two stats. The company recorded a net loss of $2 billion in the second quarter, and that can be primarily attributed to its investment in Rivian (RIVN). Amazon (AMZN) lost $3.9 billion on its Rivian (RIVN) investment, as the electric vehicle company’s stock plummeted over the quarter.

It’s on the first page of Amazon’s (AMZN) Q2 2022 earnings report that we get further insight on its business. Under the final bullet point, the company states that it recorded a net loss of $2 billion, with $3.9 billion of those losses coming from its Rivian (RIVN) investment. Some quick basic math tells us that Amazon wouldn’t have been looking at a net loss at all if it weren’t for the abysmal quarter for Rivian (RIVN) stock.

Amazon further discussed its business with Rivian and its electric vehicle plans later on in the earnings report.

In the U.S., Amazon started making customer deliveries with its custom Rivian electric delivery vehicles (EDVs). This rollout is the start of what Amazon plans to be thousands of EDVs in more than 100 cities by the end of 2022—and 100,000 EDVs across the U.S. by 2030. In India, Amazon signed an agreement with Tata Motors to include the new Tata Ace electric vehicle as part of Amazon’s delivery fleet. The new EDV was co-developed with Amazon and will contribute to the company’s goal of having 10,000 EDVs on the road in India by 2025. In the UK, Amazon announced the launch of its first micromobility hub for more sustainable deliveries in central London. E-cargo bikes and walkers from the new hub, along with Amazon’s electric fleet already on London’s roads, will make over 5 million deliveries a year across more than 10% of London’s Ultra Low Emission Zone.

This of course comes from Amazon’s (AMZN) Q2 2022 earnings report, which showed a revenue and EPS beat for the company. For more on the latest business happenings at Amazon, stick with Shacknews.