Rivian Stock Surges 27% on R2 Launch and Optimistic 2026 Delivery Forecast
Rivian shares skyrocketed 27% in a single trading session following stronger-than-expected Q4 results and the announcement of its mass-market R2 SUV. Priced at $45,000, the vehicle targets Tesla's Model Y demographic, marking a strategic pivot from Rivian's premium lineup.
UBS upgraded Rivian from Sell to Neutral, though the stock now trades 10% above their $16 price target. The company forecasts 62,000-67,000 deliveries in 2026—a 53% increase from 2025 projections—with the R2 expected to drive volume growth.
Execution risks remain. UBS analyst Joseph Spak notes potential challenges in R2 production scaling and R1 demand softness. Rivian's Volkswagen partnership contributed $576 million in software gross profit, helping narrow automotive losses to $432 million last year.
