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Rivian’s (RIVN) R2 Platform Will Power All of Volkswagen’s Future EVs

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Volkswagen’s recent joint venture with Rivian is heavily focused on the upcoming R2 electric SUV, which will serve as the base for future Volkswagen electric vehicles.

Rivian’s (RIVN) R2 Platform Will Power All of Volkswagen’s Future EVs

Volkswagen’s (VWAGY) recent joint venture with Rivian (RIVN) is heavily focused on the upcoming R2 electric SUV, which will serve as the base for future Volkswagen electric vehicles. Indeed, Rivian’s software chief, Wassym Bensaid, who now also co-leads the joint venture with Volkswagen, explained that the R2’s platform and tech stack will power different models across Volkswagen brands like Audi and Skoda. Although each brand will customize its design, interface, and suspension, they will share the same core software and architecture in order to streamline development.

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Interestingly, Volkswagen’s investment in Rivian will also provide the firm with the billions it needs to update its factory and bring the R2 into production by the first half of 2026. The R2 is Rivian’s attempt to move into the mid-priced EV market, with a target price of $45,000. Bensaid emphasized that this vehicle is the company’s “No. 1 priority,” as it looks to expand beyond its premium R1 line. He added that the development of the R2 has been far more efficient thanks to lessons learned from the R1, and that the company is confident in its timeline.

However, it is worth noting that Rivian has yet to reach full profitability, and the uncertain future of U.S. EV tax credits could impact pricing and demand. Nevertheless, customers are already asking for the R2. In addition, both Volkswagen and Rivian are counting on its success, not just to increase sales, but also to make up for Volkswagen’s EV software delays and bring scalable EV solutions to the market faster.

Is RIVN Stock a Good Buy?

Turning to Wall Street, analysts have a Hold consensus rating on RIVN stock based on seven Buys, 15 Holds, and three Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average RIVN price target of $14.74 per share implies 5.2% upside potential.

See more RIVN analyst ratings

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