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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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Timber companies think of them as pests, but new research indicates that stands of the slender tree can act as barriers against raging flames.
Colorado’s Aspen Acres Fire is named after a quiet RV campground located high in the San Isabel Mountains, about a five-hour drive due southeast of the state’s better-known Aspen. Both places, however, are named after the iconic deciduous tree known for its golden leaves in the fall. While the start of monsoon season may yet prevent the Aspen Acres Fire — the seventh-largest in Colorado’s history — from joining Utah’s Babylon Fire as the second 100,000-acre “megafire” of the season, the conflagration has been aided in its rampage not by aspens, but rather by dead, downed, and blighted ponderosa pines, spruce, and Douglas firs. The wildfire has now burned over 98,000 acres and nearly 300 homes, and is only 36% contained due to steep terrain that has hampered firefighting efforts, along with extreme drought conditions and beetle infestations that have greatly degraded the forest health of the region.
But what about its aspens? Though the extent of the damage at the campground remains unknown, according to a recent study of Populus tremuloides, Colorado’s iconic golden trees could be one of the keys to more wildfire-resistant forests in the future.
Flavie Pelletier, a recent PhD graduate of McGill University’s Natural Resource Sciences program, told me she first became interested in aspens while working as a tree planter in British Columbia. “The historical assumption on aspen is that stands are very good at stopping fire progression. But the paradox is that if you take an aspen by itself, it’s going to burn at high severity,” Pelletier, who published her findings in Forest Ecology and Management, told me.
By creating near-real-time maps of fires using satellites and comparing them against the Canadian Forest Service’s newly available maps of dominant tree species in the boreal, Pelletier and her colleagues discovered that aspen were almost two and a half times more common at the perimeter of a burned area than inside it. The finding suggests that despite the flammability of a single aspen with its thin bark, stands of aspen act as a kind of barrier when wildfire ran up against them, likely because they lack the flammable resins of conifers and their high foliage helps force running crown fires back toward the ground. Pine and spruce, by contrast, showed a near-zero or even negative effect.
When aspen stands did burn, Pelletier found they did so more slowly: A tree cover of 50% aspen burned at about 224 hectares per day, compared to 717 hectares per day in areas where aspen made up less than 10% of the cover. That’s the equivalent of about 1,000 FIFA-regulation soccer pitches per day in places where aspen are sparser — like Aspen Acres.
Even more surprising, though, was that the pattern held true in the early season, when the trees are still twiggy and have yet to grow their moisture-filled leaves, and despite the severity of fire weather. “Aspen still showed resilience even when the fire weather was very intense, [like in 2023, when] we had all the fires,” Pelletier said.
But she was also the first to admit that seasons are getting more extreme, and that there’s no guarantee the pattern will hold for the next 10 or 20 years.
Pelletier was reluctant to make a policy recommendation based on her research, noting that she’s not a forest manager. But in Alberta and British Columbia, timber companies spray hundreds of thousands of acres of timber with glyphosate, an herbicide, to kill off aspens because the trees outcompete the more commercially valuable conifers. Her findings are “a big argument to stop the spreading of herbicides because you’re increasing the risk of fire in your forest by removing aspen,” Pelletier said.
Despite her hesitation, Pelletier is explicit in her paper about one thing: that aspens “should be encouraged — specifically around key landscape positions, such as population centers” — given that they are a proven means of hardening the wildland-urban interface against wildfires. It might be too late for the idyllically named Aspen Acres, of course; any of the aspens that once drew tourists to the area are likely now ash.
But this not be Colorado’s last fire, either.
Current conditions: More than two dozen locations across the Mountain West and Midwest broke temperature records Sunday as the nation’s heat wave roasted the Central United States • At least 12 people died fleeing a sweeping wildfire in Spain as hundreds of firefighters battled the flames • In Colorado, the ongoing Aspen Acres Fire has destroyed 780 structures.
During President Donald Trump’s first term, his administration’s big fight over public lands centered on the last two national monuments approved by Barack Obama on the way out of office. In 2017, Trump signed executive orders slashing the size of Bears Ears National Monument by 85% and nearby Grand Staircase-Escalante, both located in Utah, by half. Legal challenges were still pending when President Joe Biden restored the reserves to their initial size in 2021. But ABC4 in Utah reported last week that Trump planned to announce a new executive order to shrink the boundaries of the monuments yet again, likely this afternoon. “The Antiquities Act was a one-way statute when Teddy Roosevelt signed it into law. It was a one-way statute when President Trump tried to ignore it in 2017. It’s still a one-way statute today,” Aaron Weiss, the executive director of the Center for Western Priorities, said in a statement. “Just last month, Congress had a chance to weaken the management plan for Grand Staircase-Escalante and declined.”
In April, the Senate approved a House resolution using the Congressional Review Act to clear the way for a mining operation near Minnesota’s Boundary Waters, in what my colleague Jeva Lange called a declaration of “open season on public lands.”
Over the past 12 months ending in July, 56 fusion companies raised a total of $4.5 billion, a 69% jump over 2025’s total. That’s according to the latest data from the Fusion Industry Association’s annual report. Total funding since 2021 now stands at $14.2 billion, a sevenfold increase. Twice as many companies are now competing as when the report was first published six years ago. This year’s figures include major financing rounds from Commonwealth Fusion Systems, which raised $863 million last August; Inertia Enterprises, which brought in $450 million in February; Helion Energy, which raked in $456 million last month; and the European champion Proxima Energy, which netted $518 million this month.

Back in January, I told you when the price of copper hit a record high. We kept track, too, of Chilean miners’ plans to ramp up production last month. But Chile’s output of copper fell sharply in May, according to a Mining.com analysis of data from Codelco, the country’s national miner. Production from major miners such as BHP dropped over 18% year-on-year to 106,300 metric tons. The fall comes as key mines in the South American nation face declining ore quality.
The move comes right as one of China’s biggest solar manufacturers switched from using silver to copper in its panels in response to what Bloomberg described as the surging prices of the precious metal.
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The world’s first commercial satellite powered by nuclear energy has launched into space after escaping the Earth’s atmosphere on a SpaceX Transporter-17 vessel. Miami-based City Labs, the company behind the launch, specializes in designing, developing, and manufacturing micro power technology based on the radioisotope tritium. The technology is meant to provide long-lasting, maintenance-free power for medical, industrial and space applications. “This is a historic step for commercial nuclear power in space,” City Labs CEO Peter Cabauy told World Nuclear News. The system “demonstrates that safe, compact, and regulatory-approved nuclear power systems are ready for routine commercial deployment.” The technology “enables persistent, always-on” operations “that are not constrained by sunlight or battery life.”
New York is behind on its development of clean energy. Its offshore wind buildout has stagnated. The state has limited space and sunlight for large-scale solar. And while Albany is positioning itself as the state leader on nuclear power with plans to construct more reactors upstate, those efforts are long term, and only just began. But one source of green power is expanding faster than expected: rooftop solar. New Yorkers installed 8 gigawatts of distributed solar capacity, putting the state ahead of schedule moving toward its legally-binding goal of 10 gigawatts by 2030. “New York continues to set the bar high as we mark another milestone for solar within our communities across the state,” New York Governor Kathy Hochul, a Democrat, said in a statement. “This is low-cost, reliable clean energy that is delivering cost savings for families and businesses while expanding the availability of renewable energy which benefits our environment, our economy and contributes to New York’s diverse energy resource mix.” That’s optimistic. But as Heatmap’s contributor Jesse Jenkins explained on our Shift Key podcast in 2023, there are limits to how big an impact rooftop solar can have on emissions.
China, as I told you last week, has been investing heavily in green hydrogen. The statement in Beijing’s latest Five-Year Plan confirms that green hydrogen, ammonia, and methanol “will play a significant role in decarbonizing China,” Hydrogen Insight reported.
Building a data center is also quite carbon-intensive.
When I helped start Heatmap News three years ago, I didn’t think I would be writing this much about big tech companies.
I knew that, sure, they were crucial to America’s ability to develop and scale some next-generation emissions-reducing technologies. (By then, Microsoft had already started its huge carbon removal purchasing program.) And, yes, I knew they bought a lot of renewables. But I still understood their clean energy programs chiefly as an employee perk — a way for some of the economy’s richest firms to show their largely urban, college-educated, and liberal employees that they cared.
Perhaps that was true once. It’s not true anymore. Over the past several years, the tech companies have become major electricity consumers and producers in their own right. Artificial intelligence has turned their electricity procurement and development businesses into core operational competencies. (Meta and Microsoft have even considered entering the electricity trading business.) Some of the thorniest questions in climate policy were first encountered by these tech companies.
More importantly, their hunger for electricity has transformed them into quasi-industrial companies — and given them enough heft in the market to sometimes counterbalance (and sometimes collaborate with) the utilities and fossil fuel firms that previously steered the sector. As such, they’re now crucial parts of the U.S. decarbonization story.
Three companies in particular dominate the artificial intelligence cloud business: Google, Amazon, and Microsoft.
The country’s best-known frontier labs, such as OpenAI and Anthropic, rely on these companies to provide their compute power; Amazon Web Services is the backbone of virtually the entire online software industry. Amazon, Google, and Microsoft account for more than half of the country’s data center power capacity, according to the investment firm Jeffries.
So these companies’ emissions are, in a sense, not only their own; they also give us a view into the AI industry’s carbon footprint more broadly.
Over the past two weeks, all three of these cloud providers released their energy and emissions data for the past year, and we’ve looked at the top line findings from these reports in past editions. Today I want to briefly dive into what they could mean together.
Let’s handle the part you already know: Everyone’s emissions are up.
Microsoft’s emissions grew by 25% last year, their largest year-over-year leap since the pandemic. Amazon’s emissions leapt by 16%, its largest one-year increase ever. Google’s emissions increased by 18%, rising above their pre-pandemic level.
This surge will make the companies’ climate goals increasingly difficult to meet — and some of them are coming up fast. Microsoft has pledged to become ‘carbon negative’ by 2030, meaning it must remove more climate pollution from the atmosphere than it emits in that year. Google has pledged to achieve net zero by 2030, a goal that requires — by its own estimate — cutting its emissions in half by that year, as compared to their 2019 level. Amazon, meanwhile, has pledged to achieve net-zero in its operations by 2040.
All three firms’ greenhouse gas emissions are up because of the AI data center boom. Microsoft consumes nearly four times as much electricity as it did before the pandemic; Google’s electricity use has more than doubled.
These companies’ energy use has swelled, too, but at least as of last year, nearly all of their energy demand still took the form of electricity. When we think about “electrification” in the national context, perhaps we should think at least as much about these AI megalodons as we do about heat pump or battery manufacturers.
Amazon, to its shame, does not publish recent electricity usage data, so it doesn’t appear on either of these charts.
But outsiders have estimated its power consumption based on the numbers it does publish. Hendrik Rood, an IT researcher and consultant in the Netherlands, calculates that Amazon’s data center business used 78,000 gigawatt-hours in 2025. That would mean it consumes nearly as much electricity as Microsoft and Google combined.
As I cautioned yesterday, some of these figures are already outdated. Although all three companies just released their 2025 sustainability data, Microsoft brackets its report to the fiscal year, which ended on June 30, 2025. Google and Amazon’s data covers the calendar year.
In what might be a quirk inherent to the genre, all three sustainability reports have a somewhat defensive tone (or at least a writing style that tries to anticipate quibbles). These companies know that their sustainability pledges, embraced in the heady flush of 2020 and 2021, have become much more difficult to fulfill in the AI era. And they want you to know that all of their emissions could be worse — if not for their corporate policies, pollution might be much higher.
I can’t say I find these counterfactuals entirely believable. We don’t know what Google or Microsoft or Amazon would do if, say, computing were more energy intensive or a certain process more environmentally damaging. And Jevon’s paradox suggests that every gain in efficiency — especially for a service as in-demand as AI — will make it cheaper to use AI, therefore raising its energy demand.
But I do think it’s worth sharing these claims to get some perspective. Google, for its part, says that its corporate emissions would be five times higher than they are if not for its total slate of policies:

Microsoft takes a more clinical approach. It selects four of its corporate policies: “carbon-free electricity, sustainable fuels, XBOX console efficiency,” as well as efforts to decarbonize its Surface tablet production. If not for these interventions, it says, it would have emitted 34 million tons of greenhouse gas into the atmosphere last year, not the 21 million tons that it did produce.
For all the focus on the difficulty of powering data centers (including by Heatmap), electricity does not drive most of these companies’ emissions — or it didn’t in the first half of last year, at least. The majority of Microsoft, Google, and Amazon’s greenhouse gas emissions came from what are dubbed “scope 3” emissions, a somewhat nebulous category that includes buildings, employee travel, and the full carbon footprint of their supply chain. This category reflects the AI boom in its own way.
(Skip this if you’re a sustainability nerd: In the classic schema used for corporate emissions accounting, “scope 1” emissions are direct fossil fuel pollution from an asset that the company owns or controls, “scope 2” emissions are pollution associated with the electricity, steam, or chilled water purchased by the company, and “scope 3” emissions are everything else — pollution from the company’s upstream supply chain and its downstream product use. I find this scheme makes somewhat more sense for businesses like airlines and automakers than it does for technology conglomerates. But that’s a different newsletter.)
It makes sense, then, that Amazon should have huge scope 3 emissions. The scope 3 subcategory called “Purchased Goods and Services” drives the largest share of its emissions; these include pollution from goods and services that Amazon buys for its employees to use, as well as all the embodied carbon in its line of Amazon Basics products.
But the biggest driver of scope 3 emissions — and thus for emissions overall — for Microsoft and Google came from “capital goods,” a category that covers new construction, physical assets and other fixed infrastructure used to produce products and services. More than 40% of Microsoft’s total emissions came from capital goods, and they made up more than 9 million metric tons of the company’s greenhouse gases. Google doesn’t fully aggregate out its “capital goods” category, combining it with the “use of sold products” subcategory, but it was responsible for almost 9 million tons as well.
These capital goods include the new data centers themselves: all the cement, steel, server racks, and silicon that actually make up the physical infrastructure supporting the AI boom. Here at Heatmap, we often focus on the electricity sector because it’s where so much change. But it’s good to remember that construction remains enormously carbon-intensive, and the literal buildings that house AI are, in many cases, still driving a disproportionate amount of emissions.