Rivian Automotive’s stock price experienced a significant drop of about 14% this week, despite initially rising after the company’s fourth-quarter earnings report. This decline may be attributed to investors waiting to see if Rivian can execute its growth plans, particularly with the upcoming launch of its new R2 model.
Key Points
- Rivian expects a sharp rise in EV deliveries this year.
- The company will deploy its third-generation autonomy platform on the R2 later this year.
- Rivian’s stock price dropped about 14% this week, according to data from S&P Global Market Intelligence.
The stock of electric vehicle (EV) maker Rivian Automotive (NASDAQ: RIVN) initially rose after the company reported its fourth-quarter results on Feb. 12. However, this week, Rivian shares have crumbled, nearly returning to their pre-earnings release levels. This decline is likely due to investors’ anticipation of the company’s ability to execute its growth plans.
Rivian expects its new R2 to have a larger market thanks to its lower price point compared to its R1 SUV. The company also plans to showcase its latest industry-leading technology. Rivian projects sales to increase by up to nearly 60% above 2025 levels at the high end of its guidance range. The R2 is expected to start at around $45,000, and the company anticipates high consumer interest in the model.
Image source: Rivian Automotive.
R2 or bust
Rivian is not counting solely on R2 sales. The company will highlight its third-generation autonomy platform on the new model later this year. This technology will be used on future models, too. Rivian says it is “expected to have one of the most powerful combinations of sensors and inference compute in a consumer vehicle in North America when launched in R2 in late 2026.”
That sounds promising, but after the initial post-earnings excitement, investors seem to be waiting to see if Rivian can now execute on its growth plans. The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Rivian Automotive wasn’t one of them.
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Howard Smith has positions in Rivian Automotive. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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