Dec 13, 2025

Rivian Autonomy & AI Day December 2025

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Rivian’s First Autonomy & AI Day Unveils Custom Silicon and Subscription Services

Rivian held its inaugural Autonomy & AI Day on December 11, 2025, at its Palo Alto, California headquarters, marking the company’s strategic pivot from electric vehicle manufacturer to “AI-defined vehicle platform.” CEO RJ Scaringe unveiled custom autonomous driving hardware, new subscription services, and a roadmap to Level 4 self-driving, though the stock fell 6.1% on investor skepticism about long timelines and capital requirements.

Custom Silicon and Next-Generation Autonomy

The centerpiece announcement was the Rivian Autonomy Processor (RAP1), a custom 5nm chip manufactured by TSMC. The processor delivers 1,600 sparse INT8 TOPS and processes 5 billion pixels per second, powering Rivian’s third-generation Autonomy Compute Module (ACM3). This marks Rivian’s departure from Nvidia chips and establishes its vertical integration in autonomous driving hardware.

Rivian also introduced its Large Driving Model (LDM), an end-to-end AI system trained similarly to large language models, designed to achieve Level 4 autonomy over time. Unlike Tesla’s camera-only approach, Rivian confirmed LiDAR sensors will be integrated into R2 models starting late 2026, providing “redundant sensing” for edge-case scenarios.

New Services Launching Early 2026

The Autonomy+ subscription will launch in early 2026, priced at:

Option	Price
One-time purchase	$2,500
Monthly subscription	$49.99/month

This pricing significantly undercuts Tesla’s Full Self-Driving option. The service enables Universal Hands-Free driving across 3.5 million miles of North American roads.

A new Rivian AI Assistant, replacing the previous Amazon Alexa integration, will also arrive in early 2026 on Gen 1 and Gen 2 R1 vehicles with Google Calendar integration.

R2 Production On Track Amid Expanding Manufacturing Capacity

Rivian confirmed the R2 SUV remains on schedule for first-half 2026 production at Normal, Illinois, maintaining its $45,000 starting price despite tariff pressures.

R2 Key Specifications

Range: Over 300 miles
Towing capacity: 5,000 lbs
Performance: Tri-motor variants capable of sub-3-second 0-60 mph acceleration

The R3 crossover targeting approximately $37,000 is expected in 2027-2028.

Manufacturing Expansion

Facility	Current → Target Capacity	Investment	Timeline
Normal, Illinois	50,000 → 215,000 annual	$1.5 billion	Ongoing
Georgia	New facility → 400,000 annual	$6.6 billion DOE loan	2028 production

Financial Position and Path to Profitability

Rivian maintained its 2025 guidance:

Vehicle deliveries: 41,500–43,500 units
Gross profit: Roughly breakeven for the year
Cash reserves: $7.1 billion
Total liquidity: $7.7 billion

The company achieved its third consecutive quarter of positive gross profit in Q3 2025. Management targets positive adjusted EBITDA by 2027, supported by:

Volkswagen joint venture’s $5.8 billion commitment
R2 platform achieving 45% lower material costs compared to R1

Market Reaction Splits Wall Street

The stock closed at $16.43, down 6.1% on trading volume nearly three times normal.

Analyst Opinions

Firm	Rating	Price Target	Commentary
Needham	Buy	$23 (+64% increase)	Praised vertical integration and “durable competitive advantage”
Morgan Stanley	Underweight	$12	Warned of “EV winter” headwinds; projects $4.2B FCF burn for 2026

The consensus rating remains Hold with an average price target around $14.

Bull case: Autonomous platform as long-term differentiator with subscription revenue potential.

Bear case: Execution risk on R2 launch, capital intensity of AI development, and challenging EV market conditions heading into 2026.

Conclusion

Rivian’s Autonomy & AI Day established the company’s ambitions beyond vehicle manufacturing into software-defined, AI-enabled mobility. The custom RAP1 chip, competitively priced Autonomy+ service, and LiDAR commitment differentiate Rivian’s approach from Tesla. However, near-term execution on R2 production, continued cash burn, and EV market headwinds remain key risks investors must weigh against the long-term autonomous driving opportunity.