Equity research analyst at The Benchmark Company Mickey Legg initiated coverage on EV startup Rivian Automotive Inc. (NASDAQ:RIVN) on Monday with a "buy" rating and $18 price target.
What Happened: "Rivian is well-positioned to gain significant share of a massive market opportunity in the coming decade," Legg wrote, as reported by Barron's. "After a pause this year, domestic EV production is expected to improve in 2025 and further accelerate in 2026 to 2027 as average selling prices decline and the charging infrastructure is built out."
Rivian currently makes only the R1T electric truck and the R1S electric SUV for individual consumers. Both vehicles start at around $70,000, placing them in the pricier EV bracket.
The company is looking to expand its total addressable market with the R2 SUV expected to be priced around $45,000, in the same price range as Tesla's best-selling Model Y SUV. R2 is expected to enter production in early 2026.
The company is also planning to start deliveries of its R3 crossover after the R2. The crossover is expected to be priced lower than the R2 SUV but it is unclear whether the R3's price will undercut the Tesla Model 3 or remain within the same range.
Why It Matters: Rivian produced 13,157 vehicles in the third quarter and delivered 10,018 vehicles. For the whole year, Rivian intends to deliver 50,500 to 52,000 vehicles. The company is yet to make a profit.
However, it ended the third quarter with $6,739 million in cash, cash equivalents, and short-term investments, with more to come from German automaker Volkswagen with whom the startup has forged a partnership.
Rivian shares closed up 11.2% at $14.45 on Monday. The stock, however, is down by about 31.5% year-to-date, according to data from Benzinga Pro.
Rivian has a consensus price target of $16.17 based on the ratings of 25 analysts. Canaccord Genuity on Oct. 7 issued Rivian's highest price target of $28. The lowest price target of $11 was issued by Mizuho on Nov. 8.
Check out more of Benzinga's Future Of Mobility coverage by following this link.
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オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会（ASIC）の管理を受けております（AFSL No. 224663）。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。
The company is looking to expand its total addressable market with the R2 SUV expected to be priced around $45,000, in the same price range as Tesla's best-selling Model Y SUV. R2 is expected to enter production in early 2026.
同社は、R2 SUVを約45,000ドルで販売予定で、テスラのベストセラーであるモデルY SUVと同じ価格範囲に位置することで、総アドレス可能市場を拡大することを目指しています。R2は2026年初頭に生産に入る予定です。