Shares of Rivian (RIVN) and Uber (UBER) have each been beneath stress in latest months, as buyers weigh profitability issues and slowing progress expectations.
Rivian inventory has dropped greater than 33% from its December 52-week excessive and is down about 24.3% yr so far.
Uber inventory is down roughly 9% this yr and has fallen about 22% since its Nov. 4 earnings report. Each shares are underperforming the S&P 500, which has slipped about 5% yr so far.
That backdrop makes their newest transfer particularly necessary.
Uber, Rivian robotaxi deal may reshape progress outlook
On March 19, Rivian and Uber introduced a significant robotaxi partnership that would reshape each firms’ progress tales.
Uber plans to take a position as much as $1.25 billion in Rivian and deploy as many as 50,000 totally autonomous R2 automobiles on its platform.
The automobiles are anticipated to launch in San Francisco and Miami in 2028, with growth to as many as 25 cities throughout North America and Europe by 2031.
“We’re big believers in Rivian’s approach, designing the vehicle, compute platform, and software stack together, while maintaining end-to-end control of scaled manufacturing and supply in the U.S.,” Uber CEO Dara Khosrowshahisaid in a press launch.
The partnership offers Rivian a large-scale business path for its autonomous driving expertise, backed by a well-capitalized associate.
And for Uber, it brings the chance that robotaxis may change into a key upside driver.
Uber’s technique is prone to change into a platform for autonomous automobiles reasonably than proudly owning them instantly.
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Rivian earnings spotlight ongoing profitability challenges
The information comes shortly after Rivian reported quarterly outcomes that confirmed enhancing efficiency however ongoing losses.
For the fourth quarter, Rivian reported an adjusted lack of 54 cents per share, narrower than the 68-cent loss anticipated. Income reached $1.29 billion, beating estimates of $1.26 billion, CNBC reported.
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For the total yr 2025, income rose 8% to about $5.4 billion. The corporate additionally reported its first annual gross revenue of $144 million.
Nonetheless, that revenue was pushed largely by Rivian’s software program and providers phase, together with its three way partnership with Volkswagen, which helped offset $432 million in losses in its automotive enterprise.
The corporate is predicted to stay unprofitable because it ramps manufacturing of its lower-cost R2 car.
Alongside the Uber deal, Rivian stated it not expects adjusted EBITDA to show optimistic in 2027, citing elevated analysis and growth spending tied to its autonomous driving roadmap, in accordance with an SEC submitting.
Rivian now expects an adjusted EBITDA lack of between $2.1 billion and $1.8 billion in 2026.
Morgan Stanley: Uber inventory upside might not be priced in
Morgan Stanley sees the partnership as a optimistic growth for Rivian and a probably larger alternative for Uber inventory.
For Rivian, the agency stated the deal validates its autonomous driving platform and gives further capital help.
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“Similar to Rivian’s joint venture with Volkswagen, the deal brings in funding from a well-capitalized partner investing heavily in autonomous driving,” the agency stated.
For Uber, Morgan Stanley stated the deal “further advances its strategy of enabling multiple autonomous vehicle players within a rapidly developing AV ecosystem.”
Uber additionally introduced partnerships with Amazon’s Zoox, Motional, Wayve, and Nvidia, reflecting its potential technique to change into a platform for autonomous automobiles reasonably than proudly owning them instantly.
That technique could not but be mirrored in Uber’s valuation.
“With Uber’s U.S. rides business arguably trading at a low single digit EBITDA multiple, success in autonomy is not currently reflected in the valuation and could become a meaningful driver of multiple expansion,” Morgan Stanley stated.
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