Electric vehicle manufacturer Rivian expects to hit a key autonomy milestone this year that will unlock a $250 million tranche of investment from Uber, CEO RJ Scaringe said on Thursday. Speaking on the company’s progress, Scaringe stated that executives are “very confident” in reaching the target and that consumer demand for the newly introduced R2 compact SUV remains robust.
The upcoming Uber funding and expanding R2 sales are critical components of Rivian’s strategy to curb heavy financial losses and reduce cash burn. The capital supports the company’s continued development of self-driving technology alongside its ongoing joint venture with German automaker Volkswagen, which has emerged as an essential revenue stream.
Under the terms of the agreement, Uber is investing up to $1.25 billion in Rivian through 2031. This commitment features an initial $300 million investment and depends on the electric vehicle maker achieving specified autonomy milestones. While Scaringe declined to disclose the precise criteria required for individual funding tranches, he noted that the schedule is tracking “right on time” relative to internal corporate planning. The partnership aims to launch driverless R2 robotaxis on Uber’s network by 2028, beginning in a select number of cities before expanding to approximately 25 markets over an 18-month rollout period.
The R2 has quickly gained traction, outselling the R1 SUV, the R1 pickup truck, and the company’s delivery vans during its first full quarter of production. That momentum helped drive Rivian to record quarterly deliveries totaling 19,248 vehicles. Production scale-up is continuing with the addition of a second shift. Scaringe noted that the fourth quarter will see further volume increases as manufacturing ramps up. More affordable trim variants of the R2, which is positioned to compete with the Tesla Model Y and will start at $45,000, are scheduled for release next year.
Financial metrics showed progress during the third quarter, as the cost of goods sold per vehicle decreased by more than $12,000 compared to the previous three-month period, though the company continues to lose money on each vehicle sold. Meanwhile, Scaringe dismissed reports of friction in integrating Rivian’s software systems into Volkswagen vehicles as “noisy,” characterizing the partnership as “very positive.” The first Volkswagen model equipped with Rivian technology—a cost-effective electric vehicle intended for the European market—remains on track for a 2027 debut. Volkswagen will also license the foundational technology powering Rivian’s artificial intelligence assistant.
