Al Root
New models can overcome weakening electric-vehicle demand, making Rivian stock a buy for one Wall Street analyst heading into the new year.
Baird analyst Ben Kallo upgraded Rivian shares on Thursday to Buy from Hold. He raised his price target on the stock to $25 a share from $14.
"2026 is the year of R2," wrote Kallo. R2 is Rivian's second EV platform, following its R1 vehicles. The R1S is an all-electric SUV. The R1T is an all-electric pickup truck. Rivan is slated to start selling R2 vehicles in the middle of 2026.
R2 can "be a boost for Rivian's brand, product demand, and thus by extension the stock," added Kallo, who also pointed out that Rivian's work on autonomous driving, which includes custom-designed microchips, is positive for the company's long-term competitiveness. "We want to own [shares] into the new product cycle."
Rivian stock rose 3.6% to $18.27 in premarket trading, while S&P 500 and Dow Jones Industrial Average futures were up 0.4% and 0.2%, respectively.
The upgrade comes at an uncertain time for EVs. Sales in October and November fell after the removal of the $7,500 federal EV purchase tax credit in September.
Loss of the credit is a headwind to 2026 EV sales. Wall Street expects Rivian to sell about 66,000 vehicles. A year ago, that estimate was 97,000 vehicles. Rivian is expected to deliver about 43,000 cars in 2025.
Overall, 30% of analysts covering the stock rate shares Buy, according to FactSet. The average Buy-rating ratio for stocks in the S&P 500 is about 55%. The average analyst price target for Rivian shares is about $16.
Coming into Thursday, Rivian stock has risen about 33% this year.
Write to Al Root at allen.root@dowjones.com
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(END) Dow Jones Newswires
December 18, 2025 08:04 ET (13:04 GMT)
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