Is Rivian a Buy Now?

Fear of a slowdown in electric vehicle (EV) sales has many automakers shifting their priorities, and among those companies is Rivian Automotive (NASDAQ: RIVN).

The EV maker is expanding its self-driving car technology segment, and it just landed a major deal with Uber Technologies.

Rivian stock has shown some positive momentum this week, but does that make it worth considering as a long-term investment?

Image source: Getty Images.

Keeping sales climbing

Producing technological hardware of any type is an expensive business. Software companies are known for achieving much better margins thanks to scalability and potentially lower production, distribution, and sales costs.

Rivian was founded as an automaker, but it's moving to a more blended approach, extending its sales beyond just one-time vehicle purchases through higher-margin software subscriptions. Broadly, that business model shift is showing progress: The company booked $576 million in software and services gross profit in 2025, compared to $7 million for 2024.

The centerpiece of that subscription business is Rivian's Autonomy+ service, which it debuted a year ago. Cars using Autonomy+ can offer hands-free assisted driving on 3.5 million miles of roads across North America.

Rivian also has another tailwind brewing thanks to that Uber deal. The ride-share giant recently agreed to invest up to $1.2 billion in Rivian through 2031, assuming that its self-driving tech advances as expected. The companies expect Uber to deploy 10,000 Rivian R2 robotaxis in the first phase of this deal, with initial launches in San Francisco and Miami expected in 2028. Uber also has the option of negotiating the purchase of up to 40,000 additional autonomous R2s starting in 2030.

As Uber CEO Dara Khosrowshahi said in Rivian's press release:

We're big believers in Rivian's approach -- designing the vehicle, compute platform, and software stack together, while maintaining end-to-end control of scaled manufacturing and supply in the U.S. That vertical integration, combined with data from their growing consumer vehicle base and experience managing the complexities of commercial fleets, gives us conviction to set these ambitious but achievable targets.

Understanding the risks

Rivian's Autonomous+ subscription platform and its Uber deal look like promising revenue drivers, but this is still an early-stage company that has a long way to go to prove that its business model can turn a profit.

The company has a history of missing expectations, and it reported a net loss of $3.6 billion in 2025.

The stock price is noticeably down this year, and anyone who has owned shares for the past five years has watched their investment plummet in value by nearly 90%.

At this point, Rivian stock is best suited for aggressive investors who believe in the premise that there's a disconnect between the market's perception of the company and the potential of its transformation from just an automaker into a technology company.

Because of that apparent disconnect, the stock could offer significant upside, but there are plenty of hurdles the company will have to clear to turn its potential into reality. Investors will have to wait to see how well the company can execute on its vision.

Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Uber Technologies. The Motley Fool has a disclosure policy.