As Rivian Automotive (RIVN) prepares to launch its new mid-size R2 SUV in 2026, the company has gotten a vote of confidence from one Wall Street analyst who thinks the more affordable vehicle could be a game-changer.
Needham analyst Chris Pierce maintained his Buy ranking on the automaker in a note this week, while also reiterating a $14 price target.
Pierce’s bullish stance hinges on the company’s pivot to a more affordable model after previously releasing its luxury R1 SUV.
There are four models of the R1, starting at $77,000 and reaching $122,000 for the most expensive one.
Meanwhile, the R2 has a starting price of $45,000, which Pierce predicts “will be substantially expanding RIVN's TAM (total addressable market) beyond the more expensive R1 vehicle.”
“The size of the potential market opportunity for the R2 is encouraging when looking across current EV and ICE (internal combustion engine) offerings at similar price points, and even more so versus modest consensus FY26 R2 delivery estimate,” he added.
Pierce also points to a positive Needham survey of consumers in U.S. cities where there is currently low EV adoption, including Charlotte, Atlanta, Cincinnati, and Cleveland.
According to the firm, there's “strong RIVN brand awareness, limited negative perception and encouraging purchase intent, positioning RIVN favorably to capture share as the R2 enters the mid-size SUV segment.”
A number of Wall Street analysts have been lowering their price target on RIVN stock lately, although that could be partly due to a slowing EV market across the globe
The Trump administration’s elimination of a $7,500 tax credit to consumers for buying an electric vehicle didn't help either.
In its annual and global outlook for the EV sector, BloombergNEF noted that this “is the first year where we have reduced both our near-term and long-term passenger EV adoption outlook.”
“Policy changes in the US are the biggest factor, with national fuel-economy targets being rolled back, supportive elements of the Inflation Reduction Act either being removed or under threat, and the potential removal of California’s ability to set its own air quality standards,” the report stated.
During a recent interview on the “InsideEV’s podcast,” Rivian CEO RJ Scaringe spoke about the challenging policy environment that the industry is facing now with the current administration in the White House, specifically the "reprioritization of capital towards internal combustion."
"Things I never thought would happen a year ago are happening now," Scaringe said.
As noted in BloombergNEF’s global outlook, President Trump blocked California’s plan to phase out gas-powered vehicles in its state by 2035, which California is challenging in court.
"It blows my mind this is happening," Scaringe said. "But nonetheless, it is."
Your email address will not be published. Required fields are markedmarked