Rivian shares jump on Uber investment tied to robotaxi plan

Shares of Rivian Automotive Inc (NASDAQ:RIVN) roseate much than 4% connected Thursday aft Uber Technologies said it volition put up to $1.25 cardinal successful the electrical conveyance shaper arsenic portion of a concern to deploy autonomous vehicles starting successful 2028.

The banal initially climbed arsenic overmuch arsenic 9% successful premarket trading earlier paring gains.

Under the agreement, Uber volition statesman with an archetypal $300 cardinal investment, with the remainder funded done 2031 taxable to Rivian gathering definite autonomous-driving milestones, the companies said.

The concern centers connected the planned deployment of 10,000 afloat autonomous Rivian R2 SUVs arsenic robotaxis connected Uber’s platform, with archetypal rollouts targeted for San Francisco and Miami successful 2028. The companies besides said Uber would person the enactment to acquisition up to 40,000 further vehicles starting successful 2030.

Rivian, known for its R1S SUVs and R1T pickup trucks, has yet to motorboat a robotaxi work but has been investing successful its autonomous capabilities, including unveiling a customized self-driving spot successful December. The institution is preparing to motorboat its smaller R2 SUVs this quarter.

Uber has been expanding its relation arsenic a level for autonomous conveyance operators, partnering crossed the manufacture with companies including Alphabet Inc.’s Waymo unit, Baidu Inc. and Lucid Group.

Wedbush analysts said the Uber woody represents a “landmark partnership” that helps validate Rivian’s R2 level and improves visibility connected request and superior arsenic the institution scales production, portion besides advancing its autonomous conveyance roadmap.

“We presumption this arsenic RIVN afloat leaning into the autonomy astatine a important play with the commercialized accidental materializing,” analysts wrote.

“The Uber woody announced contiguous combined with the ~$2 cardinal from Volkswagen’s JV superior committedness gives america incremental assurance successful the durability of the semipermanent RIVN maturation communicative arsenic the institution enters what we presumption arsenic a existent inflection year.”