Uber Wants 50,000 Rivians. Here's Why Robotaxis, Not EVs, Might Be Rivian's Biggest Opportunity.
Rivian's path to growth may increasingly run through autonomous driving.
Overview
Rivian Automotive (NASDAQ: RIVN) has spent years trying to become a major player in the electric vehicle market. Now a new deal with Uber (NYSE: UBER) could open the door to an entirely different opportunity: robotaxis.
Uber plans to deploy at least 10,000 autonomous Rivian R2 vehicles, with the option to purchase as many as 40,000 more beginning in 2030. That's huge! Uber is also prepared to invest up to $1.25 billion in Rivian through 2031, although most of that money is tied to Rivian hitting specific autonomous-driving milestones. For a company expected to deliver only 65,000 to 70,000 vehicles in all of 2026, this is not trivial.
Details
To be sure, Rivian still needs to prove it can profitably manufacture electric vehicles at scale. In Q2, the company delivered 12,194 vehicles and generated $1.66 billion in revenue. It posted a $179 million gross profit, but its automotive business still recorded a $36 million gross loss. Rivian also burned through $849 million in free cash flow during the quarter. But robotaxis could give Rivian another way to make money from the technology it's already developing.
Source
Originally published at www.fool.com.
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