Rivian's "Universal Hands-Free" Feature Drives Stock Surge as Baird Upgrades Rating

Deep News04:50

Electric vehicle maker Rivian Automotive, Inc. (RIVN) surged 14% in late Thursday trading, poised to record its 10th-best trading day of 2025. The rally followed a rating upgrade from "Hold" to "Buy" by brokerage Baird and the company's rollout of a new hands-free driving feature update.

Baird significantly raised Rivian's price target by nearly 79% to $25, stating: "2026 will be the year of R2."

Concurrently, Rivian announced its new hands-free functionality will allow drivers to remove their hands from the wheel across 3.5 million miles of roads in the U.S. and Canada.

Despite branding it as "universal hands-free" driving, the EV manufacturer clarified the feature won't automatically stop at traffic lights or stop signs, follow navigation system instructions, or execute turns. It only operates on roads with clearly visible lane markings.

Rivian unveiled this update during last week's AI Day event, where it also hinted at its robotaxi plans.

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