Overview
- Needham raised its Rivian target to $23 from $14 and reiterated a Buy rating following the company’s AI & Autonomy Day.
- Analyst Chris Pierce cited vertical integration and in‑house development as drivers of faster learning and feature rollouts that could confer an advantage.
- The mass‑market R2 is expected in the first half of 2026, with low expectations creating potential upside if the launch exceeds the market view.
- Needham shifted its valuation framework to 20x EV/FY28E adjusted EBITDA, up from a prior 15x, supported by growing enthusiasm for R2.
- Yahoo Finance notes roughly $7 billion in cash at Q3 2025 to fund R2, while cautioning that softer EV demand and reduced subsidies pose meaningful risks alongside Rivian’s consumer, commercial, and licensing businesses.