Rivian Automotive ( RIVN ) shares extended gains on Tuesday as investors braced for the highly anticipated launch of the R2 — a new, more affordable mid-size SUV — on March 12.
Wall Street analysts including TD Cowen’s Ita Michaeli and Morgan Stanley’s Andrew Percoco are recommending a buyout of RIVN ahead of the big event, saying the R2 rollout could prove a turning point for the electric vehicle (EV) company.
Despite today’s rise, Raven’s stock remains down about 15% from its year-to-date high.
Wall Street’s bullish sentiment is largely tied to R2’s potential to unlock mass market scale.
TD Cowen expects R2 demand to “exceed” what experts are currently modeling. Michaeli estimates full-scale demand to reach 212,000 to 335,000 units annually, providing a significant increase to 2027 estimates.
Echoing that enthusiasm, Morgan Stanley also called the car’s $45,000 price target a “game changer” that could legitimately threaten established segment leaders like Tesla’s (TSLA) Model Y.
According to Wall Street analysts, the R2 will cut material costs in half compared to the R1, potentially bridging the gap between niche luxury and high-volume profits.
The fundamental bull case for Raven shares is largely supported by strong financial and strategic tech winds.
The EV specialist recently achieved a major goal – reporting its first full year of positive gross profit ($144 million in 2025).
Additionally, RIVN maintains one of the strongest balance sheets in the EV startup space, with approximately $6.1 billion in cash on hand to provide a stable runway through the R2 production ramp.
Beyond consumer cars, Raven’s high-margin software and services business also doubled last year, bolstered by a joint venture with Volkswagen ( VWAGY ) and Amazon’s ( AMZN ) commercial van fleet.
Meanwhile, EV stocks aren’t particularly expensive at less than 4x price-to-sales (P/S).
Ahead of R2’s launch on Thursday, Wall Street has a consensus “Hold” rating on RIVN shares.
But price targets are still as high as $25, indicating a potential upside of another 45% from here.
