Rivian Automotive’s (RIVN) new midsize electric R2 SUV is catching Wall Street’s attention since it will be priced below the EV maker’s more expensive R1 models and give buyers a more affordable option. Production is planned to start in the first half of 2026 at Rivian’s upgraded Normal, Illinois, plant, with the first deliveries expected later that same year. Interestingly, the company is aiming for about 50,000 vehicles in 2026. As a result, investment firm Needham remains positive on Rivian ahead of the R2 launch.
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Indeed, the firm pointed to strong results from a consumer survey that it conducted in areas where electric vehicle adoption is still low. Needham’s analyst, Chris Pierce, said that the R2’s market potential looks attractive compared to both current electric and gas-powered SUVs in the same price range. This is because the survey also showed that Rivian already has strong name recognition, little negative perception, and solid purchase intent. Therefore, Rivian looks well-positioned to gain market share once the R2 enters the midsize SUV category.
Thanks to these results, Needham kept its Buy rating on Rivian and set a $14 price target. The firm believes that the R2 could be a key growth driver, especially if Rivian can expand production quickly to meet demand. In fact, if production ramps smoothly, the R2 has the potential to be Rivian’s breakthrough vehicle in the highly competitive EV market.
Is RIVN Stock a Buy or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on RIVN stock based on seven Buys, 14 Holds, and three Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average RIVN price target of $13.79 per share implies 5% upside potential.
