Rivian & Uber: A Robotaxi Pact & The Illusion of Progress

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Rivian Automotive (RIVN +3.70%), purveyors of rather large electric carriages and, apparently, the future of urban transportation, saw a modest uptick yesterday, closing at $16.12. This was largely due to Uber Technologies (UBER 1.72%) announcing plans to invest up to $1.25 billion in the company – a sum that sounds impressive until you consider the sheer scale of building a fleet of self-driving vehicles. It’s a bit like promising to drain the ocean with a teaspoon, really. Investors, naturally, are watching to see if these promises of autonomous wizardry actually materialise, and whether Rivian can actually make enough of these vehicles to fill the streets without resorting to summoning them from alternate dimensions. Trading volume reached 75.4 million shares, which suggests a significant number of people are either very optimistic or haven’t quite grasped the concept of risk. Rivian, you may recall, launched onto the market in 2021, and has since demonstrated that even the most innovative companies can experience a gravitational pull towards… well, let’s just say ‘modesty’.1

How the Markets Moved Today

The S&P 500 took a gentle downward step, slipping 0.28% to 6,606, while the Nasdaq Composite followed suit, also down 0.28% to 22,091. Among the electric carriage builders, Tesla closed at $380.30, down 3.18% – a reminder that even the frontrunners can experience a wobble. Lucid Group, however, managed a slight upward climb, finishing at $10.30, up 3.52%. This suggests a certain… selective optimism within the sector. It’s as if the market is saying, “Yes, electric vehicles are the future… but let’s see who actually manages to build that future first.”

What This Means for Investors

Uber’s plan involves investing up to $1.25 billion in Rivian to supply them (or their designated partners – the precise details are, naturally, shrouded in the mists of corporate strategy) with 10,000 fully autonomous R2 robotaxis, with the option to purchase another 30,000 in the distant future of 2030. These self-propelled carriages will initially appear in the bustling metropolises of Miami and San Francisco in 2028, with a potential expansion to 25 cities by 2031. One imagines a fleet of gleaming, driverless vehicles gliding through the streets, occasionally getting stuck in traffic and politely requesting assistance from bewildered pedestrians.

The initial $300 million cash infusion will, presumably, help Rivian ramp up its manufacturing volume. This, in turn, should improve margins, assuming they can actually sell enough vehicles to justify the investment. However, consistent profitability and cash generation remain a distant dream. Therefore, the stock is best left to those investors who enjoy a healthy dose of risk – or perhaps those who simply have more money than sense. Fortunately, Rivian has secured partnerships with Amazon, Volkswagen, and now Uber, which provides a degree of support. It’s a bit like being a juggler with several safety nets… but the balls are made of glass.

1 It’s worth noting that the IPO market operates on a principle best described as ‘optimistic delusion’. Companies are valued not on what they currently earn, but on what they might earn in a future that may or may not arrive. This is a perfectly legitimate strategy… as long as everyone involved is willing to suspend disbelief.

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2026-03-20 00:03