Rivian CEO Sees 2027 as an Inflection Year as R2 Production Scales Up

Rivian ($RIVN) CEO RJ Scaringe told CNBC that 2027 will be an inflection year as R2 production begins scaling significantly. He expects the company to achieve positive automotive gross margins by year-end, excluding regulatory credits, following a substantial increase in Q4 volume.
Scaringe said Rivian's Level 4 autonomous driving technology will initially launch with Uber ($UBER) in 2028. A year-end milestone could also trigger an additional $250 million equity investment.
Volkswagen has contributed $5.3 billion of the expected $5.8 billion in joint venture funding, while demand from Amazon ($AMZN) has increased this year.
Rivian is also replacing its existing Nvidia ($NVDA) chips with its internally designed RAP1 processor. Manufactured by TSMC ($TSM) using a 5nm process, each vehicle will feature two chips delivering a combined 1,600 TOPS.