Rivian Stock Price Target Upgraded Amid EV Market Challenges
Baird analyst Ben Kallo upgraded Rivian Automotive’s stock (NASDAQ: RIVN) from a hold to a buy, raising the price target from $14 to $25 per share. Currently trading around $20, this suggests significant upside potential. Kallo emphasized the importance of Rivian’s upcoming R2 model, projected for release in 2026, as a key driver for scale and profitability. About 30% of analysts covering the stock also recommend it as a buy, according to FactSet.
The U.S. electric vehicle market faces hurdles, including the removal of the $7,500 federal EV tax credit and new tariffs on automotive imports, affecting demand. Rivian CEO RJ Scaringe highlighted the lack of compelling choices in the EV market compared to traditional gasoline vehicles. Meanwhile, competitor Ford Motor Company is pivoting towards hybrids after seeing weak demand in high-end EVs, which adds pressure on Rivian to maintain cost efficiency and maximize margins, especially with the R2 expected to target a lower price range.
