Uber Can’t Save Rivian

• Rivian’s Massive Losses

• A Shrinking US EV Market

• The Deal Terms Aren’t Solid

• A caller survey identified 1 azygous wont that doubled Americans’ status savings and moved status from dream, to reality. Read much here.

The announcement of a robotaxi concern betwixt Uber (NASDAQ: UBER) and Rivian (NASDAQ: RIVN) has galore holes. The header of their property merchandise was “Uber and Rivian Partner to Deploy up to 50,000 Fully Autonomous Robotaxis.” Start with the connection “up to.”

Further down successful the announcement was the condemnation “Uber to put up to $1.25 cardinal successful Rivian done 2031, taxable to the accomplishment of autonomous show milestones.” That includes the words “up to” and “milestones.”

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“Uber, oregon its fleet partners, expected to acquisition 10,000 afloat autonomous R2 robotaxis with the enactment to acquisition up to 40,000 much successful 2030.” That includes the words “expected” and “option.”

The announcement is truly hardly an announcement astatine all. That is wherefore Rivian lone traded up 3.8% connected the time of the property release, lone to driblet today. Even with the large news, Rivian’s banal is down 20% this year.

The information of the substance is that Rivian inactive has an amazingly anemic concern model. Its P&L shows however crippled that institution is financially. Its income amusement it has niche products successful a precise troubled US EV industry, which has been abandoned by the world’s largest car manufacturers.

Rivian precocious launched its caller R2 model. The thought is to connection EV buyers (of EV SUVs only) an affordable, but highly well-featured product. However, affordability is comparative. Rivian announced, “Deliveries commencement successful Spring 2026, opening with R2 Performance with Launch Package (starting astatine $57,990²), followed by further Premium configurations successful precocious 2026 and Standard configurations successful 2027.” The good people says the fig does not see "all applicable taxes and fees.". Those astir apt thrust the terms person to $60,000. That takes The R2 retired of the "affordable" category.

In 2025, Rivian produced 42,284 vehicles and delivered 42,247 vehicles. The institution said it would present arsenic fewer arsenic 62,000 this year.

It is intolerable to bash the mathematics completely, but it is ugly. In the 4th quarter, Rivian had gross of $1.28 billion, down from $1.73 cardinal successful the aforesaid play a twelvemonth ago. It had a nett nonaccomplishment of $804 million, compared with $743 cardinal successful the year-ago period.