EV maker Rivian Automotive (RIVN) is treating its upcoming R2 SUV as more than just a new car. Indeed, CEO RJ Scaringe said that the R2 will help collect large amounts of real-world driving data, which is essential for training its AI systems. In addition, the SUV will include improved chips and advanced sensors that will allow Rivian to better capture and use that data in order to improve its “large driving model” over time.
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At the same time, the R2 is central to Rivian’s push for growth and profitability. With the U.S. EV market slowing down, the company is targeting a wider audience with this more affordable midsize SUV. More specifically, the vehicle will initially be sold in higher-end versions priced up to $57,000, with a $45,000 base model expected within a year. This is in line with average U.S. vehicle pricing. To move faster and reduce costs, Rivian shifted production from a planned Georgia plant to its existing Illinois facility, which saved the firm billions of dollars.
And even with some setbacks, Rivian is staying on track. A tornado recently damaged part of the Illinois factory, but production timelines remain unchanged. In addition, early demand appears to be strong, as the vehicles received high interest at recent demos. Looking ahead, Rivian plans to introduce advanced driving features, starting with hands-free Level 2 systems and eventually moving toward Level 3 autonomy.
Is RIVN Stock a Buy or Sell?
Overall, analysts have a Hold consensus rating on RIVN stock based on 10 Buys, eight Holds, and four Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average RIVN price target of $17.91 per share implies that shares are near fair value.
