Rivian Automotive’s Rally: AI Hype or Lasting Turnaround?

Rivian Automotive ( (RIVN) ) has risen by 20.05%. Read on to learn why.

Rivian Automotive shares have surged 20.05% over the past week, pushing the stock to a new 52-week high and underscoring a sharp rebound in sentiment toward the electric-vehicle maker. Investors are betting on Rivian’s long-term strategy, which centers on its in-house AI chip and autonomy platform and the anticipated R2 SUV lineup, due in 2026. Strong options activity, with call buying outpacing puts, and an upgrade to Outperform at Baird have added fuel to the rally, signaling growing confidence that Rivian can capture a larger slice of the EV market.

A key driver behind the move has been a series of upbeat analyst actions. Wedbush’s Daniel Ives raised his price target on Rivian Automotive to $25 and reiterated a Buy rating, describing 2026 as a “significant year” for the company as the R2 platform launches and production scales up. Analysts see the more affordable R2 as crucial for widening Rivian’s customer base, lifting delivery volumes, and helping improve its financial profile, even as the company continues to invest heavily in manufacturing and technology while managing tariff and cost pressures.

Despite the rally and a Buy signal from technical indicators, Wall Street remains divided on Rivian Automotive. The consensus rating sits at Hold, and the average price target actually implies downside from current levels, reflecting lingering worries about R2 demand, ongoing losses, and the capital needed for in-house chip development. Governance changes, such as the upcoming departure of Board member Rose Marcario (who will remain involved via the Rivian Foundation), underline a period of transition. For investors, the 20.05% weekly jump encapsulates the stock’s appeal: a compelling growth story built on AI and new models, balanced by real execution and profitability risks as 2026 approaches.