Al Root

Rivian Automotive is approaching a very important product launch that is drawing Wall Street's attention.

Shares of the electric-vehicle maker were up 8.6% at $17.24 in early trading on Tuesday, while the S&P 500 and Dow Jones Industrial Average were down 0.3% and 0.4%, respectively.

The move came after TD Cowen analyst Itay Michaeli upgraded shares to Buy from Hold. His price target rose to $20 from $17.

Michaeli is focused on Rivian's launch of its R2 platform -- lower-cost EVs designed to boost sales by expanding the company's addressable market. The company's R1 SUV and pickup truck can cost more than $70,000. R2 deliveries should start in the first half of 2026, and the vehicles should start below $50,000.

New models mean more sales, and Wall Street projects Rivian's 2026 volumes at about 65,000 vehicles, up from about 42,000 sold in 2025.

Michaeli sees R2 demand eventually topping 200,000 units annually. Demand could eventually exceed 330,000 vehicles, suggesting upside to 2027 delivery estimates. Wall Street projects 2027 sales of about 136,000 vehicles.

Coming into Tuesday trading, Rivian stock was down almost 20% year to date. Investors have been focused on EV affordability after the $7,500 federal EV purchase tax credit expired in September. Weaker affordability pushed U.S. EV sales down 36% year over year in the fourth quarter.

But the weaker stock price creates an opportunity, TD Cowen says, ahead of the key product launch.

With the upgrade, 39% of analysts covering Rivian stock rate shares Buy, according to FactSet. The average Buy-rating ratio for stocks in the S&P 500 is currently about 59%. The average analyst price target for Rivian shares is about $18.

While the Buy-rating ratio is below average, it's moving up. Rivian stock has gained three Buy ratings over the past three months. The improving sentiment comes down to two characters: R2.

Write to Al Root at allen.root@dowjones.com

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March 10, 2026 10:57 ET (14:57 GMT)

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