Rivian Automotive Inc.
As part of the deal, Rivian will provide up to 50,000 R2-based robotaxis. Uber has committed on an initial investment of $300 million and the initial order covers 10,000 robotaxis, with an option for Uber to purchase up to 40,000 additional robotaxis.
Rivian has to hit four performance milestones to secure the complete funding from Uber.
Analyst Says Deal Validates Rivian
BNP Paribas Equity Research senior analyst and head of US auto research, James Picariello, in a note, said that the deal shows Uber's confidence in Rivian's autonomy capabilities.
Picariello, in a note, said, "This further supports RIVN's decision to develop autonomy in-house, while confirming that it expects to reach commercially viable level 4 capabilities by 2028."
But Not Everyone Agrees
While some have called the deal a positive for Rivian, not everyone agrees.
EMJCapital's founder, Eric Jackson, in a post on X called this a test for Rivian.
"Rivian's $1.25B Uber deal looks like validation. It's actually a test," Jackson said in his post.
Jackson highlighted that Uber has signed deals with several companies, including Alphabet Inc's
Uber's deal with Rivian is an "option" for the ride-hailing giant, while Rivian is going "all-in" for the deal.
Rivian has confirmed that due to an increase in its R&D costs, it no longer expects to deliver positive EBITDA in 2027. "Rivian just pushed out profitability and increased burn," Jackson added.
Gary Black Says Rivian Will Be Acquired
The Future Fund's Gary Black, in a post on X, said that he believes that Google, Amazon.com Inc.
He called this one of the reasons to own RIVN stock.
