Rivian says it's on track for $250 million Uber funding by year-end, R2 demand strong
The Uber funding and strong R2 sales are crucial to Rivian's push to narrow heavy losses and cash burn while it funds a bet on self-driving technology and leans on its joint venture with Volkswagen, which has become a major source of revenue.
Rivian's CEO RJ Scaringe expressed confidence on Thursday that the electric vehicle manufacturer will meet an autonomy milestone this year, allowing it to unlock a $250 million funding tranche from Uber. The strong demand for Rivian's new R2 compact SUV also played a crucial role. This funding and sales surge are vital for Rivian's efforts to curb heavy losses and cash burn while investing in self-driving technology.
The partnership with Uber provides up to $1.25 billion in investment through 2031, contingent on autonomy milestones. The initial $300 million investment is expected to enable a 2028 launch of driverless R2 robotaxis on Uber's network, initially in a few cities, expanding to about 25 over 18 months. In its first full quarter, R2 outsold Rivian's R1 SUV, pickup truck, and delivery van, with 19,248 deliveries recorded.
Scaringe anticipates a significant ramp-up of R2 sales in Q4 as production ramps up with a second shift. Cheaper trim variants of the R2, comparable to Tesla's Model Y, are slated for release next year. The cost of goods sold per vehicle declined by more than $12,000 in the third quarter, although Rivian still operates at a loss on each car.
Scaringe dismissed reports of difficulties integrating Rivian's software into Volkswagen vehicles, describing the relationship as "very positive." The first Volkswagen vehicle featuring Rivian's technology, aimed at the European market, is expected to launch in 2027. Additionally, Volkswagen will license Rivian's AI assistant technology.
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