"Rivian no longer expects to meet a long-expected profitability goal in 2027 because of how much money it is spending on its autonomy efforts. The company said it does not expect to be EBITDA positive by next year as it sees R&D costs rising in line with its quickening efforts to build out its self-driving technology."
"Rivian has long told shareholders that it could reach positive EBITDA in 2027 as long as it successfully launched the R2 SUV, and increased its software revenue. But the company has faced an increasing number of hurdles before that goal: The federal EV tax credit was discontinued, its ability to sell regulatory credits to other automakers has been diminished, and its costs have risen due President Trump's tariffs."
"Founder and CEO RJ Scaringe has said Rivian is spending more on research and development for autonomy than anything else at the moment. The company's annual filing shows it spent $1.7 billion on R&D in 2025, up from $1.6 billion in 2024."
Rivian announced it will not achieve EBITDA positivity by 2027, contrary to previous shareholder expectations, primarily because of substantial investments in autonomous driving technology. The company's R&D costs are rising significantly to support self-driving capabilities, with annual R&D spending reaching $1.7 billion in 2025. Beyond autonomy expenses, Rivian faces additional financial pressures including discontinued federal EV tax credits, reduced regulatory credit sales, and increased costs from tariffs. The company has accumulated $27 billion in net losses since its 2009 inception through 2025. Despite these challenges, Rivian announced a partnership with Uber to develop robotaxi versions of its R2 SUV.
Read at TechCrunch
Unable to calculate read time
Collection
[
|
...
]