E-commerce behemoth Amazon.com (NASDAQ:AMZN) is continuing its push in the lucrative electric vehicle (EV) market with its latest decision to invest up to €1 billion ($974.8 million) in Europe. As per a Reuters report, Amazon is increasing its investment in last-mile delivery electric vans, trucks, and low-emission package hubs across Europe in the next five years. Amazon also aims to buy about 1,500 electric heavy-goods vehicles for middle-mile shipments to package hubs in the next few years.
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Amazon has vowed to achieve net zero carbon by 2040. Notably, the retailer’s latest investment will boost its electric van fleet in Europe from 3,000 to over 10,000 by 2025. Amazon delivered approximately 100 million packages through this zero-emission fleet in 2021.
Furthermore, Amazon will also invest in micro-mobility package hubs that facilitate new delivery methods, including electric cargo bikes and on-foot deliveries, to reduce emissions. The company will also invest in EV charging infrastructure across Europe. To date, Amazon’s largest electric van order is with startup Rivian Automotive (NASDAQ:RIVN) for 100,000 vehicles to be delivered by 2030.
Is Amazon Expected to Go Up?
Amid the tough macro backdrop, Amazon stock has lost 32.8% so far this year. Nonetheless, the 12-month price target for AMZN is $171.94, which implies an impressive 50.1% upside potential. On TipRanks, Wall Street analysts have awarded the stock a Strong Buy consensus rating based on 35 Buys versus just one Hold rating.
