Rivian Automotive (RIVN) shares are extending gains on Tuesday as investors brace for the highly anticipated launch of the R2 — a new, more affordable midsize SUV — on March 12.
Wall Street analysts including TD Cowen’s Itay Michaeli and Morgan Stanley’s Andrew Percoco recommend buying RIVN ahead of the big event, saying the R2 rollout could prove transformational for the electric vehicle (EV) firm.
Despite today’s surge, Rivian stock remains down about 15% versus its year-to-date high.
Wall Street’s bullish sentiment is largely anchored to R2’s potential to unlock mass-market scale.
TD Cowen expects R2’s demand to “far exceed” what experts are currently modeling. Michaeli estimates full-scale demand reaching 212,000 to 335,000 units annually, providing significant upside to 2027 estimates.
Echoing this enthusiasm, Morgan Stanley also called the vehicle’s $45,000 price target a “game changer” that could legitimately threaten established segment leaders like the Tesla (TSLA) Model Y.
According to Wall Street analysts, R2 will cut bill-of-materials costs in half compared to the R1, potentially bridging the gap between niche luxury and high-volume profitability.
The fundamental bull case for Rivian shares is supported more broadly by strengthening financials and strategic tailwinds.
The EV specialist recently achieved a major milestone — reporting its first full-year of positive gross profit ($144 million in 2025).
Moreover, RIVN maintains one of the strongest balance sheets in the EV startup space, with about $6.1 billion in cash providing a stable runway through the R2 production ramp.
Beyond consumer vehicles, the Rivian’s high-margin software and service business also more than doubled last year, bolstered by the Volkswagen (VWAGY) joint venture and Amazon’s (AMZN) commercial van fleet.
Meanwhile, the EV stock isn’t particularly expensive at a price-to-sales (P/S) multiple of less than 4x.
Heading into the R2 launch on Thursday, Wall Street has a consensus “Hold” rating on RIVN shares.
But the price targets still went as high as $25, indicating potential upside of another 45% from here.
