Rivian, Uber stocks struggle, but robotaxi deal may change the story

Shares of Rivian (RIVN) and Uber (UBER) person some been nether unit successful caller months, arsenic investors measurement profitability concerns and slowing maturation expectations.

Rivian banal has dropped much than 33% from its December 52-week precocious and is down astir 24.3% twelvemonth to date.

Uber banal is down astir 9% this twelvemonth and has fallen astir 22% since its Nov. 4 net report. Both stocks are underperforming the S&P 500, which has slipped astir 5% twelvemonth to date.

That backdrop makes their latest determination particularly important.

On March 19, Rivian and Uber announced a large robotaxi concern that could reshape some companies’ maturation stories.

Uber plans to put up to $1.25 cardinal successful Rivian and deploy arsenic galore arsenic 50,000 afloat autonomous R2 vehicles connected its platform.

The vehicles are expected to motorboat successful San Francisco and Miami successful 2028, with enlargement to arsenic galore arsenic 25 cities crossed North America and Europe by 2031.

“We’re large believers successful Rivian’s approach, designing the vehicle, compute platform, and bundle stack together, portion maintaining end-to-end power of scaled manufacturing and proviso successful the U.S.,” Uber CEO Dara Khosrowshahisaid successful a property release.

The concern gives Rivian a large-scale commercialized way for its autonomous driving technology, backed by a well-capitalized partner.

And for Uber, it brings the anticipation that robotaxis could go a cardinal upside driver.

The quality comes soon aft Rivian reported quarterly results that showed improving show but ongoing losses.

For the 4th quarter, Rivian reported an adjusted nonaccomplishment of 54 cents per share, narrower than the 68-cent nonaccomplishment expected. Revenue reached $1.29 billion, beating estimates of $1.26 billion, CNBC reported.

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For the afloat twelvemonth 2025, gross roseate 8% to astir $5.4 billion. The institution besides reported its archetypal yearly gross nett of $144 million.

However, that nett was driven mostly by Rivian’s bundle and services segment, including its associated task with Volkswagen, which helped offset $432 cardinal successful losses successful its automotive business.

The institution is expected to stay unprofitable arsenic it ramps accumulation of its lower-cost R2 vehicle.

Alongside the Uber deal, Rivian said it nary longer expects adjusted EBITDA to crook affirmative successful 2027, citing accrued probe and improvement spending tied to its autonomous driving roadmap, according to an SEC filing.

Rivian present expects an adjusted EBITDA nonaccomplishment of betwixt $2.1 cardinal and $1.8 cardinal successful 2026.