Rivian Could Be a Surprise Robotaxi Winner After Scoring a $1.25 Billion Partnership With Uber
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Overview
The robotaxi industry is still in the early stages, but it could expand rapidly over the next decade. Investors are tipping several companies to emerge as leaders in this market, including Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), which owns Waymo, and Tesla (NASDAQ: TSLA), which has ramped up its fleet of robotaxis over the past year. However, Rivian (NASDAQ: RIVN), an electric vehicle (EV) maker, could be a surprise winner in this industry, given the deal it signed with Uber Technologies (NYSE: UBER) earlier this year. Here's why investors shouldn't discount Rivian's chances in the race to the top in the robotaxi market.
Image source: The Motley Fool.
In March, Rivian agreed to deliver up to 50,000 autonomous units of its new R2 models to Uber through 2030. In exchange, Uber will invest up to $1.25 billion in Rivian through 2031, including $550 million this year. This is a great deal for Rivian for several reasons. First, the company receives a substantial cash infusion that will help it achieve certain goals. Notably, the EV maker needs to train its self-driving software and achieve full autonomy (at least in certain regions) with its R2 for this partnership to be as lucrative as possible.
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Originally published at www.fool.com.