Rivian (RIVN) Stock Rallies 26% as Wall Street Flips Bullish on EV Maker

TLDR

• Rivian stock jumped 26.64% to $17.73 as analysts upgraded ratings and raised price targets following Q4 earnings
• TD Cowen lifted price target from $13 to $17 while UBS upgraded from Sell to Neutral with $16 target
• Company’s mass-market R2 vehicle priced under $50,000 begins shipping in 2026, competing directly with Tesla
• Rivian investing heavily in AI and self-driving technology to keep pace with Tesla despite capital disadvantage
• 2026 guidance came in line with consensus expectations, easing concerns about EV demand and product cannibalization

Rivian stock surged 26.64% to $17.73 Thursday after multiple analyst upgrades following the company’s Q4 earnings report. The rally came as Wall Street firms expressed renewed confidence in the EV maker’s product pipeline and 2026 outlook.

Rivian Automotive, Inc., RIVN

TD Cowen analyst Itay Michaeli raised the firm’s price target from $13 to $17. He maintained a Hold rating but called the quarterly results “encouraging” against a backdrop of weak sentiment. The 2026 guidance matched consensus estimates and exceeded fears about EV demand softness and potential R1 cannibalization from new models.

UBS upgraded Rivian from Sell to Neutral with a $16 price target, up from $15. The firm stated that near-term risk/reward now appears more balanced at current price levels. Deutsche Bank also upgraded shares to Buy on the same day.

The analyst community sees Rivian’s valuation reset as creating opportunity. UBS noted its previous Sell rating was partly valuation-based. The firm expressed excitement about Rivian’s product pipeline and brand strength.

Mass Market Push Mirrors Tesla Strategy

Rivian’s upcoming R2 model represents a turning point for the company. The vehicle will be its first priced under $50,000, targeting the mass market for the first time. Nearly 70% of Americans want their next vehicle purchase under this price threshold.

Tesla’s Model 3 and Model Y transformed that company into a $1.3 trillion giant. Those affordable models now account for over 90% of Tesla’s vehicle sales. Rivian hopes to replicate this success with its R2, R3, and R3X models launching through 2027.

The R2 begins shipping early this year. This puts Rivian in direct competition with Tesla in the lucrative affordable EV segment. Until now, the company has focused on premium trucks and SUVs priced above mass-market levels.

Getting a true EV under $50,000 requires massive scale. Only a handful of manufacturers have achieved this due to production and cost challenges. Rivian’s ability to deliver at this price point could define its next three years.

AI Investment Keeps Pace With Tesla

Rivian has made AI and autonomous driving central to its growth strategy. The company trails only Tesla in self-driving technology development despite having less capital to deploy. Recent months have seen multiple AI platform announcements from Rivian.

Self-driving capabilities are becoming table stakes for new vehicle sales. Advances in AI have accelerated autonomous technology faster than expected. Many experts now believe full autonomy is closer than ever before.

Tesla has invested billions in AI development. Rivian appears committed to matching those efforts despite its smaller size. The company is betting its capital on AI as a critical competitive advantage.

UBS highlighted its enthusiasm for Rivian’s brand and product lineup. The firm believes 2026 guidance captures both upside potential and downside protection. Analysts see the company positioned to compete effectively as AI becomes more important to vehicle buyers.

Rivian’s stock now sits at $17.73 with a market cap of $22 billion. The 52-week range spans $10.36 to $22.69.

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