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Rivian's R2 EV Sparkles: Baird Sees Outperform Potential
19 Dec
Summary
- Baird upgraded Rivian Automotive to Outperform.
- The R2 model will be built in Illinois and priced near $45,000.
- Rivian ended Q3 with $7.1 billion in cash and equivalents.
Baird has upgraded Rivian Automotive to an Outperform rating, projecting significant growth driven by the upcoming launch of the R2 electric vehicle. This new model, expected to be priced around $45,000 and produced at the Normal, Illinois facility, aims to attract a wider customer base and increase delivery volumes through the latter half of the year.
The brokerage also highlighted Rivian's recent Autonomy and AI Day, where the company detailed its autonomous driving strategy and revealed custom chip development. These initiatives are seen as key to enhancing Rivian's long-term competitive edge in the evolving EV market, especially as investor concerns regarding potential EV tax credit removals begin to subside.
Baird forecasts Rivian's 2026 deliveries to reach approximately 65,300 vehicles, including an estimated 15,100 R2 units, assuming deliveries begin in late Q2 2026. The firm also noted potential catalysts from fleet announcements and Rivian's substantial liquidity, which stood at $7.1 billion in cash and equivalents at the end of the third quarter.
