Core Viewpoint - Rivian and Uber are facing profitability concerns and slowing growth expectations, leading to significant stock declines for both companies [1][2]. Company Performance - Rivian's stock has decreased over 33% from its December 52-week high and is down approximately 24.3% year to date [1]. - Uber's stock has fallen about 9% this year and around 22% since its earnings report on November 4 [1]. - Both companies are underperforming compared to the S&P 500, which has declined about 5% year to date [1]. Partnership Announcement - On March 19, Rivian and Uber announced a significant robotaxi partnership, with Uber planning to invest up to $1.25 billion in Rivian [3]. - The partnership aims to deploy up to 50,000 fully autonomous R2 vehicles on Uber's platform, launching in San Francisco and Miami in 2028, with potential expansion to 25 cities by 2031 [3][4]. Financial Results - Rivian reported an adjusted loss of 54 cents per share for the fourth quarter, which was narrower than the expected 68-cent loss, with revenue reaching $1.29 billion, surpassing estimates of $1.26 billion [5]. - For the full year 2025, Rivian's revenue rose 8% to approximately $5.4 billion, and the company reported its first annual gross profit of $144 million, primarily from its software and services segment [6]. - Rivian's automotive business incurred losses of $432 million, and the company is expected to remain unprofitable as it ramps up production of its lower-cost R2 vehicle [6]. Future Expectations - Rivian has revised its expectations, stating it no longer anticipates adjusted EBITDA to turn positive by 2027 due to increased R&D spending related to its autonomous driving roadmap [7]. - The company now expects an adjusted EBITDA loss between $2.1 billion and $1.8 billion in 2026 [9].
Rivian, Uber stocks struggle, but robotaxi deal may change the story