On Thursday, Stifel, a financial services firm, maintained a Buy rating for Rivian (NASDAQ:RIVN) Automotive Inc (NASDAQ:RIVN) with a steady stock price target of $18.00. The reiteration follows the electric vehicle manufacturer's announcement of its new R2 mid-size SUV platform, which is expected to begin production in the first half of 2026 with a starting price of approximately $45,000.
The analyst from Stifel highlighted several positive takeaways from the launch event. The first was the earlier-than-anticipated start of production, slated for the first half of 2026 instead of the previously expected late 2026. Additionally, the introduction of the R3 and R3x midsize crossover variants was seen as a favorable development.
A significant reduction in expected costs was another key point from the unveiling. Rivian plans to utilize its existing facility in Normal, Illinois, for production, which is a shift from the initial strategy to immediately build out a new plant in Georgia. This change is expected to substantially lower upfront expenses.
Furthermore, the company's management indicated that Rivian has adequate liquidity to support the launch of the R2 model. This is contrary to earlier assumptions that additional cash would be necessary to complete the launch.
Stifel views the R2 and R3 production as pivotal for Rivian's long-term success and its journey towards profitability. The firm believes the recent announcement is a positive step for the company and has chosen to maintain its Buy rating and target price.
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