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CEO RJ Scaringe told CNBC that 2027 will be a pivotal year as the company rolls out more advanced self-driving features. The R2 SUV, which is cheaper than Rivian's original trucks, has already become its top-selling model. The plan is to launch a limited version of its point-to-point driving system soon, followed by a wider release in 2027.
This matters because the R2 is the key to Rivian reaching enough scale to become profitable. While the premium R1 trucks built the brand, the R2 is designed for the mass market. Combining that volume with high-margin software like self-driving tech is the company's best path to making more money on every car it sells.
Source: CNBC
UBS upgraded the stock to a buy rating on Monday, joining a growing number of analysts who see a clearer path for the electric vehicle maker. The move follows the company's successful launch of its more affordable R2 platform, which is designed to reach a much wider group of buyers than its original high-end trucks.
This upgrade is the second major firm to change its mind on the stock this week. While the average analyst target sits at $17, the shift in ratings suggests that professional researchers are becoming more confident that the partnership with Volkswagen and the new vehicle volume can lead the company toward steady profits.
Source: UBS
Jefferies changed its rating on the stock from a hold to a buy on Friday. This shift follows the company's recent quarterly results, which showed it has begun delivering its more affordable R2 vehicles to the public and is earning high-margin revenue from its software partnership with Volkswagen.
An upgrade from a major firm like Jefferies suggests growing confidence that the company can successfully move from a niche truck maker to a mass-market player. While the stock has struggled this year, analysts now have an average price target of about $17, which is roughly 25 percent higher than where it trades today.
Source: Jefferies
CEO RJ Scaringe confirmed that Rivian is on track to hit a specific goal for its self-driving technology this year. Reaching this milestone would unlock a $250 million payment from Uber, part of an ongoing investment deal between the two companies.
This cash is important because building new car models and factories uses up a lot of money before they become profitable. Securing this funding through technology progress, rather than by selling more shares, helps the company grow without further diluting the value for current owners.
Source: Reuters
Rivian appointed Derek Mulvey as its interim Chief Financial Officer, effective October 30. Mulvey has been with the company since 2021 and most recently served as the Vice President of Finance. He takes over the role following a departure that the company had already disclosed in August.
While an interim appointment can sometimes signal uncertainty, Mulvey is a veteran of the company's finance and investor relations teams. This internal move suggests a focus on continuity as Rivian manages the expensive production ramp of its new R2 vehicle platform.
Source: 8-K filing
Management has built a reliable habit of setting beatable targets and clearing them, which suggests they have a firm grip on the costs of their production ramp.
| Expectation | |
|---|---|
| EPS | $-0.55 |
| Revenue | $2.52B |