Rivian announced it no longer anticipates reaching its profitability target in 2027 due to significant spending on autonomy efforts. The company revealed it will not achieve positive EBITDA next year because research and development costs are rising as it accelerates self-driving technology development.
This disclosure was included in a filing detailing Rivian’s new partnership with Uber to produce robotaxi versions of its upcoming R2 SUV for Uber’s network. Rivian had previously assured shareholders of reaching positive EBITDA in 2027 by launching the R2 SUV and boosting software revenue, but has faced challenges like the discontinuation of the federal EV tax credit, reduced regulatory credit sales, and higher costs due to tariffs.
One analyst, Joseph Spak from UBS, had predicted Rivian wouldn’t achieve positive EBITDA for several years. Rivian reported total net losses of $27 billion from its inception in 2009 to the end of 2025.
The delay in achieving EBITDA positivity is primarily due to Rivian’s substantial investment in developing self-driving technology. Founder and CEO RJ Scaringe stated that spending on R&D for autonomy is the company’s current priority. Rivian’s annual filings report $1.7 billion spent on R&D in 2025, an increase from $1.6 billion in 2024, attributed to enhanced engineering, design, development, prototyping, and software costs for the R2 launch and AI initiatives.
Rivian is creating a “large driving model” with a custom processor and “autonomy computer” for its software. The company aims to introduce eyes-off, hands-off driving next year, targeting “personal L4” driving capabilities. Rivian unveiled these efforts at its first “Autonomy & AI Day” event in December, showcasing its driver-assistance software.
The partnership with Uber includes up to $1.25 billion investment in Rivian and potential purchase of up to 50,000 R2 SUVs, with an initial $300 million investment and 10,000 R2s ordered from Rivian. The majority of the deal is expected around 2030.
Rivian also plans a new facility in Georgia and anticipates R2 production soon. It projected a spending range of $1.95 billion to $2.05 billion for the year.