Why Baird Sees Rivian’s Next SUV And Autonomy Push Driving A 40% Rally

Baird noted that deliveries of Rivian’s next-generation R2 model, expected in 2026, will strengthen the brand’s market position and boost demand.

• Baird increased Rivian’s price target sharply to $25 per share from $14.
• Rivian is broadly anticipated to introduce its new R2 vehicle in early 2026.
• Baird also highlighted the company’s recent "Autonomy & AI Day," at which Rivian showcased its in-house silicon chips.

Baird has upgraded Rivian Automotive Inc. (RIVN) stock to ‘Outperform’ from ‘Neutral’ and lifted the target price sharply to $25 per share from $14, signaling confidence in the company’s prospects as it prepares for a pivotal product launch.

The new price target implies a 41% upside to Rivian’s Thursday closing price. 

Upcoming R2 Launch 

The increase in rating reflects anticipation that deliveries of Rivian’s next-generation R2 model, expected in 2026, will strengthen the brand’s market position and boost demand, according to TheFly. Baird believes the R2 cycle can propel valuations higher over time. 

Rivian is broadly anticipated to introduce its new R2 vehicle in early 2026. On the company’s third-quarter (Q3) earnings call, CEO RJ Scaringe explained that the R2 is designed to meet what he sees as the biggest demand in the auto market. He pointed out that new vehicles in the U.S. now sell for a little more than $50,000 on average. R2 is set to begin at $45,000 and will be a mid-sized SUV. 

Rivian stock traded over 4% higher in Thursday’s premarket. On Stocktwits, retail sentiment around the stock shifted to ‘bullish’ from ‘extremely bullish’ territory amid ‘extremely high’ message volume levels. 

Rivian’s planned R2 launch is seen as a turning point for the company, which has struggled to reach profitability despite notable revenue growth in the past year. In Q3, the EV maker’s revenue jumped 78% year-on-year (YoY) to $1.6 billion, while loss per share narrowed to $0.96 from $1.08. 

Autonomy And AI Advances

Baird also highlighted the company’s recent "Autonomy & AI Day," at which Rivian showcased its in-house silicon chips and a more advanced autonomy platform. These developments are intended to enhance the company’s long-term competitiveness in self-driving and AI-enhanced vehicle systems, the firm said. 

Rivian’s in-house RAP1 autonomy chip, built by Taiwan Semiconductor Manufacturing Co. (TSM), will handle data from lidar and camera-based sensors. The chip will power the company’s next-generation Autonomy Compute Module 3, which uses two RAP1 processors and can process up to 5 billion pixels each second.

RIVN stock has gained over 32% year-to-date. 

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