J.P.Morgan tweaks its bearish Rivian stock outlook after Uber deal

Rivian isn't out of the woods yet, but the startup electric vehicle manufacturer is on the right path following its recent partnership with Uber, according to a new note from analysts at JPMorgan.
Last week, on March 19, Rivian and Uber announced a partnership in which Uber will invest up to $1.25 billion in Rivian and deploy as many as 50,000 autonomous R2 vehicles on its ride-hailing platform.
The vehicle's autonomous rides are expected to launch in San Francisco and Miami in 2028, with plans to expand to as many as 25 cities across North America and Europe by 2031.
If everything goes to plan, the deal also gives the companies the option to negotiate the purchase of up to 40,000 more autonomous Rivian R2s beginning in 2030.
"We couldn’t be more excited about this partnership with Uber — it will help accelerate our path to level 4 autonomy to create one of the safest and most convenient autonomous platforms in the world," Rivian CEO RJ Scaringe said.
And analysts at JPMorgan agree with Scaringe's excitement, saying in an analyst note over the weekend that the deal is "mostly positive."
JPMorgan analysts back Rivian deal with Uber
Over the weekend, JPMorgan analysts gave their seal of approval to Uber's $1.25 billion investment in Rivian, saying that the deal to supply the ride-hailing company with tens of thousands of autonomous vehicles in two years was promising.
While the firm maintained its "underweight" rating and $9 price target on Tesla's main domestic rival, the firm says the deal helps alleviate some of Rivian's excessive cash burn as the electric vehicle maker continues to report "persistently large" operating losses and free cash outflows.
Related: Rivian, Uber robotaxi deal may (finally) kickstart shares
That extra cash will come in handy as Rivian navigates what analysts describe as a "seemingly increasingly structurally unprofitable" EV market, according to TipRanks.
In the fourth quarter, Rivian reported an adjusted loss of 54 cents per share on revenue of $1.29 billion. For the first time ever in 2025, Rivian closed out the full year with an annual gross profit of $144 million, thanks to an 8% increase in revenue to about $5.4 billion.
But much of that profit was due to Rivian's software and services segment, since its automotive business lost $432 million dollars last year.
According to an SEC filing last week, Rivian no longer expects positive EBITDA by 2027, due to increased research and development spending on autonomous driving resulting from the Uber deal.
Rivian unveils updated AI strategy at Autonomy & AI Day
Rivian understands that to compete with Tesla, it must be more than just a car company; it must also be a technology leader.