RIVN Stock Rises Overnight: Analyst Urges Bears To Test Drive R2 Before Betting Against Rivian

RIVN shares have come under pressure since R2 deliveries began, with buyers citing high lease payments and missing software features.

• Needham said the R2 launch reinforced its view that the SUV is a "TAM expanding" product capable of bringing new buyers into the Rivian ecosystem.
• The brokerage also flagged upcoming catalysts, including point-to-point navigation and a LiDAR-enabled hands-free driving variant.
• Rivian's software chief said that features such as Rivian Assistant, Pet Mode and Climate Hold were intentionally delayed for quality reasons.

Shares of Rivian Automotive (RIVN) rose 1% in overnight trading ahead of Thursday, after an analyst urged bearish investors to test-drive the newly launched R2 themselves before dismissing its demand potential or Rivian's long-term growth prospects.

RIVN stock slid over 6% on Wednesday, recording its second straight session of losses. Shares are also on track for their worst week in nearly four months. 

Analyst Says R2 Underpins RIVN Bull Thesis

Needham reiterated its ‘Buy’ rating and $23 price target on RIVN, which implies a 56% upside from current levels, after attending the company’s Investor Drive event. "A test drive and visibility into bill of materials cost downs screened bullish, and we encourage bearish investors to test drive the vehicle and demo RIVN's burgeoning autonomy suite vs gauging potential demand solely through a broader EV adoption lens," the brokerage said, according to EV.

The call comes just days after Rivian began customer deliveries of the R2, the midsize SUV widely viewed as the company's most important vehicle launch since the R1T pickup and R1S SUV. Needham said that the event reinforced its conviction that the R2 is a "TAM expanding" product, with "launch enthusiasm underpinning our bullish view."

The brokerage also pointed to improving economics and Rivian's growing ambitions in autonomy as key pillars of the bull case. The firm highlighted visibility into bill-of-materials cost reductions, which is an important factor as investors assess whether Rivian can profitably scale production of the R2. 

Needham also flagged several catalysts expected over the next year: point-to-point navigation, a LiDAR-enabled variant capable of eyes-off autonomous driving and the launch of lower-priced R2 trims. 

R2 Software Gaps, Lease Costs Pressure RIVN Stock

The bullish note came after Rivian shares plunged on Tuesday, the same day the company began deliveries of the R2. The decline was driven largely by concerns around lease pricing and missing software features rather than the vehicle itself.

The R2 Performance AWD, currently the only version available to order, starts at $57,990. Early lease quotes showing monthly payments around $829 with $3,500 down, and nearly $1,000 with no money down in some cases, drew criticism from prospective buyers. Customers also noted the absence of several software features available on current R1 vehicles, including Rivian Assistant, Climate Hold, Pet Mode and media applications.

Addressing the concerns, Rivian chief software officer Wassym Bensaid said on X that the company intentionally delayed certain features to ensure quality: "Our goal with Rivian OS2.0 was to build a new modular operating system with intuitive and flexible UX, and set a new benchmark in Performance." He added that the missing features will come through monthly over-the-air updates this summer.

How Do Retail Traders Feel About RIVN?

On Stocktwits, retail sentiment for RIVN slipped to ‘neutral’ from ‘bullish’ levels a day ago amid a 42% decline in 24-hour message volumes.

One user said, “If you're not annoyed or disappointed that the launch R2 at $59K is $829/month with $5,000 out of pocket, then you weren't seriously considering getting this vehicle.  Still think they'll sell them...but the lower priced versions cant come soon enough.”

View this Stocktwits post

Another user said, “This stock [RIVN] pisses me off. i wanted to be a long term investor, but the price doesn't hold.”

View this Stocktwits post

RIVN stock has risen 3% over the past year. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.<