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The all-American EV startup is cutting costs to survive.

America’s most interesting electric-vehicle company is about to have the defining year of its life.
On Wednesday, the company reported that it lost $1.58 billion in the fourth quarter of last year, bringing its net annual losses to $5.4 billion. It announced that it is laying off about 10% of its salaried employees, but — at the same time — promised that it has a plan to achieve a small profit by the end of this year.
Rivian does not seem to be in trouble — not quite yet, at least. But the earnings made clear what electric-vehicle observers have known for a long time: Either the company will emerge from this year poised to be a winner in the EV transition, or it will find itself up against the wall.
That’s partially because Rivian has a stomach-turning number of corporate milestones coming up. Over the next 11 months, it plans to unveil an entirely new line of vehicles, shut down its factory for several weeks for cost-saving upgrades, break ground on a new $5 billion facility in Georgia, and — most importantly — turn a profit for the first time. It also expects to manufacture and deliver roughly another 60,000 vehicles to customers.
Any one of these goals would be difficult to achieve in any environment. But Rivian is going to have to execute all of them during a time defined by “economic and geopolitical uncertainties” and especially high interest rates, its CEO R.J. Scaringe told investors on Wednesday. Since 2021, Rivian’s once robust stockpile of cash has been cut in half to about $7 billion; at its current burn rate, the company will run out of money in a little more than two years.
Although Rivian’s situation is dire, it’s not experiencing anything out of the ordinary. As I’ve written before, the electric truck maker is crossing what commentators sometimes call “the EV valley of death.” This is the challenging point in a company’s life cycle where it has developed a product and scaled it up to production — thereby raising its operating expenses to eye-watering levels — but where its revenue has not yet increased too.
During this vulnerable period, a company essentially burns through its cash on hand in the hope that more customers and serious revenue will soon show up. If those customers don’t arrive, then it either needs to raise more cash … or it runs out of money and goes bankrupt.
It’s a frightening time, but once a company crosses the valley of death, it can reach an idyll. Not so long ago, Tesla found itself in something like Rivian’s position as it prepared to launch the Model 3. Seven years later, it is the most valuable automaker in the world.
Once Rivian’s revenue exceeds its costs, its problems will get easier, or at least more straightforward: Instead of fighting for its survival and watching its cash reserves dwindle, Scaringe will be able to make more strategic trade-offs. Should the company cut costs to expand its profit margin and reward investors, or should it pass the savings along to customers in the form of lower prices, thus growing its market share? Scaringe can’t make these types of decisions until his firm is safely out of the valley.
Claire McDonough, Rivian’s chief financial officer and a former J.P. Morgan director, has a plan for crossing that canyon — an aptly if strangely named “bridge to profitability” that it will attempt to build this year. Rivian’s survival, she said, will depend above all on cutting the unit costs of producing its vehicles, including by using fewer materials to make every car. Other savings will come from making more vehicles faster. That’s what makes the shutdown plan, though it might seem extreme, worth it; McDonough said those improvements alone will get the company about 80% of the way to profitability.
Another 15% will come from marketing more “software-enabled products” to Rivian drivers and by selling air-pollution credits to other carmakers, whose vehicles are not as climate-friendly. This is a tried-and-true technique; Tesla first turned a profit in 2021 by selling regulatory credits needed to comply with federal and California state-level rules to other, dirtier automakers. But that same year, Tesla also debuted an entirely new vehicle: the Model Y crossover, which quickly became its top seller in the United States. Tesla, in other words, finally started to make money by cutting costs, finding new revenue sources, and releasing new products.
New products, however, are becoming a weak point for Rivian. The company says that high interest rates will keep demand for its vehicles flat this year. It expects to make about 60,000 of them, about 20,000 fewer than what it had once anticipated. The Rivian R1S, a three-row S.U.V., has become the company’s flagship; it is selling better and is cheaper to manufacture than Rivian’s pickup, the R1T. It also costs at least $75,000, or nearly $600 a month to lease. The highest-tier models can cost $99,000. Turns out, it’s difficult to sell a lot of $70,000 trucks when even the cheapest new-car loans hover around 6%.
Rivian once had a first-to-market advantage in the electric three-row SUV market, but that may be fizzling out, too. Kia is now selling its own all-electric three-row SUV, the EV9, for $18,000 less than the R1S; in fact, the Kia EV9’s most expensive trim costs $76,000, which is only slightly more than the cheapest R1S. The Kia SUV can also charge faster than the Rivian under ideal conditions. It remains an open question how many rich suburbanites are still interested in buying Rivians, especially now that the Tesla Cybertruck and Ford F-150 Lightning are competing directly with Rivian’s pickup truck.
The company’s hopes, in other words, rest on its next product line: the R2, which it will launch on March 7. We know almost nothing about the R2 line, except that it will probably include an SUV, that it will go on sale in 2026, and that it will fall somewhere in the $45,000 to $55,000 price range. (The median new car transaction in the United States now costs $48,200.) Last year, Scaringe told me that the R2’s timing was perfect because it would fit “beautifully with what we see as this big shift” in the American EV market. In today’s market, he said, “a lot of people ask themselves, Am I gonna get an electric car? Well maybe the next one.” He better hope they’ll start buying that next one in 2026.
Even if they do, Rivian may still have to confront the problem that Tesla has changed the EV market before Rivian could get there. When the first Tesla Model 3s were delivered in 2017, the sedan was instantly one of the best EVs on the market — because it was one of the only EVs on the market. Now every automaker in the world has plans to compete at the Model 3’s price point.
Rivian’s fortunes don’t rest entirely on American consumers; it also sells vans to commercial fleet operators, as well as delivery trucks to Amazon. (Amazon owns about 17% of Rivian.) But that business can be lumpy. Rivian’s vehicle growth slowed down last quarter, for instance, almost entirely because of a near pause in sales to Amazon, which sets up fewer new vehicles in the fourth quarter. If Amazon is willing to bail out Rivian, in other words, it’s not yet clear in the data.
None of this is to say that the company’s outlook is dire. Rivian was always going to find itself at a moment like this, when its expenses exceeded its revenue by such a large amount. The automaker already has devoted fans, and many people — myself included — are interested in the R2 as a potential first EV purchase.
And the company has shown that it can make strides in a single year. Twelve months ago, I had never seen a Rivian on the road before; today, one is regularly parked on my block. The company rocketed from a standing start to become the No. 5 best-selling electric car brand in America last year. What the company has done so far is impressive. But now it must prove that it can be great.
Editor's note: This story has been updated to correctly reflect Rivian's cash burn rate.
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A new 60-home pilot program aims to expand vehicle-to-grid charging.
When energy experts imagine the grid of the future, they often dream of millions of electric vehicles moonlighting as mobile power banks, using their hefty batteries to send electricity back to the grid when it needs a boost. But despite rapid EV adoption, this utopia has remained largely out of reach. Most vehicles don’t yet support bidirectional power flow, and most markets lack incentives for customers to feed power back to the grid in the first place.
That’s finally starting to change. While vehicle-to-grid — a.k.a. V2G — technology is still in its earliest innings, a new Massachusetts program announced on Thursday is working to make the technology something closer to commonplace. Funded by the Massachusetts Clean Energy Center, the state’s economic development agency, the initiative will install 60 bidirectional charging systems in participating residents’ homes.
The program has already begun enrolling its first participants, joining a small but growing group of V2G demonstrations across the country. But the field remains so nascent that even a 60-home project stands out. Kip Hack, who leads the distributed energy resource management company EnergyHub’s EV work, told me he very much considers it a “leading program for North America.”
The Massachusetts initiative brings together a wide variety of partners: utility companies Eversource and National Grid, EnergyHub, and technology partners Sunrun and The Mobility House, which each provide the software and device integrations needed to connect various EV models to the grid. Depending on their vehicle, eligible customers will enroll in the program through either Sunrun or The Mobility House, which will then connect them to their utility’s existing demand flexibility program, ConnectedSolutions. This decade-old initiative pays customers to reduce strain on the grid by leveraging smart thermostats, batteries, and other commercial and industrial energy systems. Now EVs will join the mix.
“They don’t actually care what the participating technology is. They only care about the output,” EnergyHub’s president, Seth Frader-Thompson told me, referring to ConnectedSolutions’ technology-agnostic design, which runs on EnergyHub’s software platform. That means the program can readily incorporate new distributed energy resources as they become available, simplifying the entire process in a way that many other regions have yet to figure out. “So when V2G technology was ready, nobody had to create a new program. You already had a program structure, an incentive structure, et cetera, that you could just have these vehicles participate in.”
Each distributed energy asset enrolled in the program can earn up to $275 per average kilowatt of grid support provided during the summer months. But customers don’t receive that payment directly from their utility. Rather Sunrun and The Mobility House set their own customer incentive structures based on that underlying $275 per kilowatt value.
Chip Silverman, Sunrun’s director of grid services and virtual power plants, told me that its customers will receive a fixed payment simply for signing up, just as the company’s stationary battery storage customers do. That gets new participants in the door — they can then earn additional performance incentives if they actually discharge power back to the grid during a demand response event. “We want to incentivize people to plug in 5:00 p.m. to 8:00 p.m. on weeknights because we want to get you to try to hit the peak events whenever possible,” Silverman told me.
The pool of qualifying vehicles remains quite limited, however. Sunrun’s system only supports the Ford F-150 Lightning, while The Mobility House’s software integrates with chargers compatible with the Kia EV9, Volvo XC90, Polestar 3, and several Nissan Leaf models. Teslas with V2G capability — which today means just the Cybertruck — are not eligible. That’s because while every other vehicle in this program places the requisite DC to AC power converter within the wall charger, Tesla installs this hardware in the car itself. While that will likely prove to be a smarter, cheaper long-term approach, for now it doesn’t align with how utilities certify and approve grid-connected equipment.
Yet even at this early stage, with limited scale and narrow eligibility requirements, Massachusetts’ early adopters are already demonstrating the technology’s value. “It has been quite hot, unseasonably hot in New England these last several weeks,” Hack told me, explaining that participants’ EV batteries have already been tapped to discharge power “more than once” since enrollment began earlier this month.
The potential for far greater impact is enormous. “The size of the battery in the car is remarkable,” Frader-Thompson told me. While a typical home battery stores around 10 to 15 kilowatt-hours of energy, an EV battery can hold on the order of 70 to 100 kilowatt-hours. “So if the vehicle is plugged in, it essentially has the ability to export the equivalent of an entire residential battery every hour during an event,” he explained.
To truly turn V2G from a promising concept into a reliable grid resource, however, utilities and grid operators will need much more data on when these batteries are available and how much power EV owners are actually willing to provide. By the end of this summer, Massachusetts’ latest experiment could offer some of the first real-world answers.
On Trump’s power pledge, America’s offshore nuclear, and Japan’s offshore wind
Current conditions: A new heat dome is spreading temperatures above 100 degrees Fahrenheit across the Central United States, from Texas north to the Dakotas • Tropical Storm Bertha made landfall over southern Louisiana with winds of up to 45 miles per hour • Tasmania is facing a cold front with freezing wind chills.

On December 8, 1953 — just eight years after the United States demonstrated the destructive power of splitting atoms in the form of a mushroom cloud over Hiroshima — then-President Dwight D. Eisenhower pledged to lead the world in harnessing fission to constructive ends. In his famed “Atoms for Peace” speech, he vowed to help other nations build nuclear power stations that he believed would bring about a new era of global prosperity built atop a foundation of abundant electricity. Under the law Congress passed the next year to lay the groundwork for a nuclear buildout, Washington didn’t make it easy for foreign countries to import American technology. Before any U.S. nuclear company can sell its wares abroad, the Senate needs to approve what’s known as a 123 Agreement, essentially a treaty in which the partner nation agrees not to use the technology for weapons proliferation. When Abu Dhabi set out to build the Arab world’s first nuclear power station, the U.S. struck a new, special 123 Agreement with the United Arab Emirates in 2009, in which the Gulf monarchy swore off ever enriching or recycling its own fuel. That deal became the gold standard for U.S. nuclear pacts — and one Washington had planned to make a requirement for any other countries in the region. Saudi Arabia, however, wasn’t happy with those restrictions, particularly as its rival Iran pressed ahead with construction of its second and third reactors at its debut Russian-made nuclear station. With the Biden administration putting up resistance, Riyadh began flaunting talks with Beijing to buy Chinese reactors, in what would mark a major entry of the People’s Republic into the nuclear export market.
All of which you needed to know to appreciate what a huge deal the latest news is. On Wednesday, The Wall Street Journal, The New York Times, and the Associated Press confirmed that Saudi Arabia had reached a deal with the Trump administration that would likely allow Riyadh to enrich and recycle its own fuel on its soil. While a formal announcement is expected this week, Secretary of State Marco Rubio already acknowledged the deal by telling reporters any such agreement would not lead to weapons proliferation. On the face of it, the deal is a major win for the U.S. over its arch adversaries. Russia dominates global nuclear exports, and is currently building the debut plants in Bangladesh, Egypt, and Turkey. China, meanwhile, has dramatically brought down the cost and time it takes to build its own domestic reactors, which are based on the leading American design, and Beijing is widely expected to make an export push in the coming years. The U.S. has managed to win deals in Eastern Europe to build Poland’s first nuclear plant. But so far, American technology has struggled to compete on both price and construction competence. A moment when Iran is firing missiles at America’s Arab allies may seem ill-suited to embarking on a civilian nuclear program, but the Atlantic Council researcher Allison Minor, who previously served as a U.S. deputy special envoy to Yemen, said the war had added urgency to brokering the Saudi-U.S. deal. “By keeping the door open for uranium enrichment inside Saudi Arabia, the nuclear deal sends a powerful message to Tehran,” she wrote in a blog post. “By securing a 123 agreement that appears to have more preferable terms than the United Arab Emirates and dozens of other U.S. partners have committed to, Riyadh also signals its role as a major global player, even if it is not among the ranks of nuclear-armed nations.”
In March, the White House organized a voluntary industry pledge in which hyperscalers and data centers developers promised to pay above and beyond the normal rate for electricity to ease the strain on Americans. On Thursday, the Trump administration plans to announce a vast expansion of the pact to include the nation’s largest utilities, Reuters reported. Utilities NextEra Energy and Duke Energy joined data center developers Equinix and Digital Realty along with roughly 200 other entities on a list of signatories The Wall Street Journal obtained.
The move comes a day after ratepayer advocates accused the Federal Energy Regulatory Commission of failing to address the cost of upgrading infrastructure in its latest order meant to ease the impacts of data centers, Utility Dive reported. Polling from Heatmap Pro has shown repeatedly that public support for data centers is collapsing.
The Colorado River’s largest reservoirs, Lake Mead and Lake Powell, hit record lows in what experts described to the Los Angeles Times this week as a “five-alarm fire.” On Tuesday, Secretary of the Interior Doug Burgum met with the governors of seven states virtually ahead of his agency’s anticipated release of a plan to cut back on water use to ease shortages. That states appear to be welcoming a federal intervention marks a break with more than a century of Western states fighting to manage their water supplies among themselves with minimal oversight from Washington. Yet “far from a brash commandeering of the system,” E&E News reported, Burgum’s plan “is effectively a kick-the-can exercise for managing the drought-riddled river that supplies water” for one in 10 Americans. “At best, the Trump administration’s plan will leave economies — from the bucolic ranches of the Rocky Mountains to the mansions of Los Angeles, the tech hub of Phoenix and the powerhouse farms along the border with Mexico — in a state of limbo, without clear rules for who will have access to vital supplies in the years to come,” reporter Annie Snider wrote. “At worst, it dares the region’s political leaders — most especially Arizona Governor Katie Hobbs, who is facing one of the country’s closest gubernatorial races in the fall — to launch a destabilizing court fight.” As former Heatmap reporter Neel Dhanesha wrote in 2023, sometimes plans can at least buy some time.
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Russia officially kicked off the global race for small modular reactors in 2019 with the launch of its first floating nuclear station, which is still pumping out power in an Arctic port today. Since then, dozens of companies have proposed small reactors on land, and a handful of startups has looked to build nuclear-propelled civilian ships. But no one has really attempted any major offshore nuclear energy projects yet. Still, the Trump administration is preparing for the potential new sector. On Wednesday, the Department of the Interior’s Marine Minerals Administration — the agency recently formed out of combining the Bureau of Ocean Energy Management with the Bureau of Safety and Environmental Enforcement — signed a memorandum of understanding with the Nuclear Regulatory Commission to “responsibly respond to industry requests” and support new technologies.
“Submerged reactor systems have been safely deployed in naval applications for decades, demonstrating their potential as a reliable source of energy in demanding marine environments,” Matt Giacona, the acting director of the Marine Minerals Administration, said in a statement. “While no commercial deployment on the Outer Continental Shelf is planned or approved at this time, it could greatly strengthen America’s energy security in the future.”
China unveiled a new set of rules for the solar industry last week that are expected to “do a good job in cutting out low-cost, outdated technology across the value chain,” according to a new report from the research division at the magazine PV Tech. The new national regulations, set to take effect on January 1, 2027, phase out weaker panels and conventional polysilicon products. “These new restrictions are very interesting as the Chinese government now sees a need to stop the oversupply, maybe coming from lowered deployment in China in the first half of the year,” Joe Hennessy, co-author of the report and analyst at PV Tech Research, told PV Tech. “This will affect the smaller producers the most, as they are less likely to have upgraded lines during the period of losses.” Larger solar manufacturers are already producing panels with efficiency rates of up to 24%, the report found.
This is a story I’m planning to keep a close eye on, given the forthcoming results of the Department of Commerce’s 232 investigation into whether domestic U.S. producers of polysilicon need new tariffs to protect them against Chinese imports. My best-placed sources say the agency is on track to release its findings by next month, though others close to the process say the 74-day government shutdown could give the administration until early September to meet its legal deadlines.”
Koloma, the startup seeking to tap into naturally occurring hydrogen deposits, has a third exploration deal in the Philippines. On Thursday, Heatmap editorial fellow Ameya Hadap broke news that the company has inked an agreement for exclusive rights to a roughly 817-square-mile area of Luzon’s Zambales Province. The Colorado-based firm now has the rights to more than 1,600 square miles of the country.
The deal, shared exclusively with Heatmap, is the startup’s third in the oil-importing country.
Hydrogen fuel comes in myriad forms. There’s green hydrogen, which is extracted from water molecules using zero-carbon electricity. There’s blue hydrogen, derived from methane and scrubbed clean by carbon capture. And then there’s white hydrogen. Otherwise known as natural or geologic hydrogen, this type of hydrogen comes directly from naturally occurring deposits in the earth, can accumulate in considerable quantities and concentrations, and is highly energy-efficient to extract compared to manufacturing pathways such as electrolyzers and steam methane reforming.
It’s a seductive promise, but finding deposits with enough hydrogen to make the economics of exploration work is difficult. That’s where Koloma comes in. The startup uses a bespoke subsurface data set, which its founders developed over 20-plus years, to flag the areas most likely to hold sufficient hydrogen, after which they can extract it for power and derivative fuels.
On Thursday, the startup announced its latest exploration deal, its third in the Philippines, which will give it exclusive rights to a roughly 817-square-mile area in western Zambales Province on the island of Luzon. Altogether, the company now has rights to explore more than 1,600 square miles of the island.
The Philippines until recently imported 98% of its oil from the Middle East. Since the onset of the U.S. and Israel-led war in Iran and the subsequent closure of the Strait of Hormuz, the country’s responses have included declaring an energy emergency, imposing a four-day workweek, tripling solar panel imports from China, and even planning to dust off the Bataan Nuclear Power Plant, which has sat idle since 1986.
The country also sits between three active tectonic plates, which means it has a lot of young iron-rich rock formations exposed to water — exactly the conditions that continuously produce natural hydrogen.
“The Philippines is like the poster child of that,” Pete Johnson, Koloma’s CEO, told me. “The geology is very, very good.” Accordingly, the prospect of a plentiful, easy-to-tap domestic energy source has gotten Philippine policymakers excited. The government collects data on natural leaks of hydrogen from the ground to help companies like Koloma narrow their search.
In theory, once a viable deposit is discovered, extraction is straightforward. “If you drill a hole into that pressurized reservoir, the gas is going to flow by itself. It’s just like poking a hole in a balloon,” Johnson told me. Where electrolyzers need around 55 megawatt-hours of energy to produce a ton of hydrogen and gas-powered reformers need around 40 megawatt-hours, natural hydrogen extraction would take 3 megawatt-hours maximum, according to the CEO. And unlike some methods to artificially stimulate the formation of hydrogen deposits, which my colleague Katie Brigham wrote about last week, tapping into natural wells doesn’t require injecting high-pressure fluids, which keeps the structural integrity of the subsurface intact.
Koloma has no hard agreement with the Philippine government to earmark any of the hydrogen it may produce there for domestic consumption, Johnson told me. But given the difficulty of transporting the lightweight gas and the projected growth of the Philippine economy, he expects the country would be the overwhelming beneficiary of Koloma’s activities there.
Once it’s extracted, Koloma could sell the hydrogen as a primary resource (major population and industrial centers like Manila are close to exploration sites) or as a feedstock for products like ammonia and sustainable aviation fuel, which local manufacturers could then export. There may also be opportunities to sequester captured CO2, which easily bonds with the types of rock often found in natural hydrogen deposits and can in turn make the rock more reactive for hydrogen generation.
Hydrogen has figured heavily in the decarbonization and energy security plans of import-dependent East and Southeast Asian economies for a long time. As Katie explained earlier this year, it’s also a centerpiece of China’s latest five-year plan. Japan, meanwhile, has been a leader since the industry’s inception, rolling out the world’s first hydrogen strategy in 2017. The Philippines’ partnership with Koloma is a bet that there are enough hydrogen balloons under its land to put its energy plans on the same trajectory.