Rivian says it’s on track for $250 million Uber funding by year-end, R2 demand strong

Rivian CEO RJ Scaringe expressed confidence that the electric vehicle manufacturer will meet an autonomy milestone this year, unlocking a $250 million investment from Uber. Strong demand for Rivian's new R2 compact SUV is also contributing to the company's efforts to reduce heavy losses and cash burn while funding self-driving technology.

Uber has committed up to $1.25 billion in investment through 2031, contingent on autonomy milestones, including an initial $300 million. The partnership aims to launch driverless R2 robotaxis on Uber's network in 2028, starting in a few cities and expanding to around 25 over 18 months. The R2 sold more units than the R1 SUV, pickup truck, and delivery van during its first full quarter, with Rivian recording 19,248 deliveries.

The company plans to introduce cheaper trim variants of the R2, similar to Tesla's Model Y, starting at $45,000 next year. Costs of goods sold per vehicle decreased by over $12,000 in the third quarter, but Rivian still incurs a loss on each car. Scaringe dismissed concerns about integrating Rivian's software into Volkswagen vehicles, stating the relationship is "very positive."

The first Volkswagen vehicle using Rivian's technology, a low-cost EV for Europe, is set to launch in 2027, and the German automaker will also license Rivian's AI assistant technology.