Rivian Automotive shares RIVN rose on Friday after the electric vehicle maker reported better-than-expected third-quarter results and raised its full-year delivery guidance.
Analysts highlighted the R2 electric SUV, improving production prospects, and the company’s autonomous driving technology as potential growth drivers.
Rivian (NASDAQ: RIVN) shares gained 4.76% at the time of writing, marking their biggest single-day advance in more than two months.
The earnings report prompted positive commentary from Wall Street analysts, with Jefferies upgrading the stock and Wedbush analyst Dan Ives maintaining an Outperform rating.
Jefferies upgrades Rivian stock as R2 targets market gap
Jefferies analyst Philippe Houchois upgraded Rivian to Buy from Hold while maintaining a $17 price target. The target implies approximately 45% upside from current levels.
Houchois expects Rivian’s R2 electric SUV to benefit as US electric vehicle demand begins to stabilise.
The analyst pointed to what he described as a “relatively unique position and product void” in the 45,000-55,000 price segment.
He sees an opportunity for Rivian between Tesla’s increasingly commoditised models and Ford’s upcoming electric vehicle based on its Universal Electric Vehicle platform.
However, Ford’s new platform may not experience a significant production ramp until late 2027, potentially giving Rivian an opportunity to establish its position in the segment.
Houchois also noted that Rivian shares had corrected roughly 30% over the past three months.
He considers the decline an attractive entry point as the company expands production and explores opportunities to license its autonomous driving technology.
Rivian shares reached approximately $20.20 in July before falling below $12.
Rivian raises 2026 delivery guidance after Q3 earnings beat
Rivian reported third-quarter revenue of $2.16 billion, representing 38% growth from the previous year. Its adjusted loss narrowed to $0.48 per share.
The company also improved its full-year adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) outlook to a loss of $1.75 billion to $1.85 billion.
This represents a $100 million improvement at the midpoint.
Meanwhile, Rivian lowered its capital expenditure guidance to between $1.4 billion and $1.5 billion.
The automaker raised its 2026 delivery forecast to 67,000-70,000 vehicles, compared with its previous range of 65,000-70,000.
CEO RJ Scaringe said the R2, which began deliveries in June, had already become the company’s best-selling vehicle, outperforming both its R1 models and electric delivery vans.
Rivian has also started a second production shift for the R2 at its Illinois factory.
More affordable versions of the SUV are expected to arrive through late 2026 and 2027.
Dan Ives highlights Rivian’s autonomy and software potential
Wedbush analyst Dan Ives maintained an Outperform rating on Rivian with a $20 price target following the quarterly results.
Ives described the report as the “beat-and-raise quarter the R2 story needed”, pointing to stronger-than-expected revenue, record deliveries and a narrower loss.
According to Ives, management expects the R2 to help drive the company’s automotive business towards positive gross margins by the end of the year.
The revised delivery guidance implies fourth-quarter deliveries of between 25,000 and 28,000 vehicles, the analyst noted.
He also highlighted strong R2 demand and the introduction of a second production shift at Rivian’s Normal, Illinois facility.
Beyond vehicle production, Ives pointed to Rivian’s software and autonomous driving ambitions, including its joint ventures with Volkswagen and Uber Technologies.
The Uber partnership is expected to unlock another $250 million in equity by the end of the year, supporting a planned 2028 robotaxi launch.
Ives also identified Rivian’s AI and self-driving technology as potential catalysts ahead of its December 9 Autonomy and AI Day.
He said these capabilities could represent an area of the business that investors have yet to fully value.
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