Rivian Automotive (NASDAQ: RIVN) stock soared over 13% Thursday after Stifel provided an upbeat outlook, citing R2 SUV positives.
Stifel, a prominent financial services firm, has reaffirmed its positive stance on Rivian (RIVN), maintaining a Buy rating alongside a steady stock price target of $18.00. This endorsement comes in the wake of Rivian’s unveiling of its latest electric vehicle, the R2 mid-size SUV, slated to commence production in the first half of 2026, with an estimated starting price of around $45,000.
The Stifel analyst underscored several positive aspects of the launch event. The first was the ahead-of-schedule production start, now set for the first half of 2026 instead of the previously projected late 2026. They also hailed the introduction of the R3 and R3x midsize crossover variants as a positive move.
At the event, Rivian revealed a significant cut in expected costs. Analysts suggest Rivian’s decision to repurpose its existing facility in Normal, Illinois, for production, diverging from its initial plan to construct a new plant in Georgia, will yield significant upfront cost savings.
The Rivian’s management also indicated that the company has sufficient liquidity to back the launch of the R2 model. Earlier assumptions had suggested that finalizing the launch would require more cash, but this action contradicts those assumptions.
Stifel considers the R2 and R3 model production crucial milestones for Rivian’s long-term viability and path to profitability. The firm interprets the recent developments as positive indicators for Rivian’s prospects and thus reaffirmed its Buy rating and target price.
Rivian (NASDAQ: RIVN) Stock Movement
RIVN stock jumped 13.42% to close at $12.51 on Thursday. The traders had exchanged hands with 150,833,043 (150.83 million) shares compared to the average daily trading volume of 39.54 million.
