Benchmark reiterated on Thursday its Buy rating on EV maker Rivian, after it hosted an investor call with the company’s Vice President of Finance Derek Mulvey.
Analyst Mickey Legg stated on a new research note — obtained by PriceTarget — that the firm has left the call “confident in the company’s growth trajectory, operational execution, and ability to scale production into the R2 launch.”
The call was held a week after the Irvine-based EV maker reported its second quarter financial results, disclosing a return to a negative gross margin and an accumulated deficit of nearly $25 billion, a record in the industry.
By then, Rivian‘s shares fell sharply and hit a low of $11.03 — its weakest level since late April. Several Wall Street analysts trimmed their price targets on the company.
Year to date, the stock has declined 9.5%, and a total 12.5% in the past twelve months. The EV maker’s shares closed at $12.28 on Wednesday.
Despite that, Benchmark remains bullish on the company, with a $18 price target, which implies an upside potential of 46.6%.
Legg wrote that the “commentary reinforced our view that Rivian is positioned to leverage its technology, brand, and partnerships to capture meaningful share,” both in the premium EV market and the most affordable segments.
Rivian is set to open orders for the R2, a $45,000 SUV, in early 2026. Production will begin in its Normal facility and then be expanded to its upcoming facility in Georgia.
The plant in Illinois will be closed “for approximately three weeks starting in September to prepare for the planned launch of the R2,” according to CFO Claire McDonough on the latest earnings call.
The new factory in Georgia is expected to be ready to operate in late 2027, with sales of its production starting in late 2028. The factory will support manufacturing both R2 and the upcoming R3.
The firm believes its thesis “behind Rivian‘s multi-year product roadmap, software-driven differentiation, and strategic partnerships remains intact.”
During the second quarter, the EV maker received a $1 billion equity investment from Volkswagen Group, related to the first quarter’s positive margin results, which were largely due to the sale of regulatory credits.
The US brand’s collaboration with VW includes a joint venture, created in 2024, and a software licensing deal — Rivian‘s contribution to the project.
The EV maker sold the majority of regulatory credits allocated for the year between January and March.
“We no longer anticipate we’ll be selling or earning revenue from the sale of regulatory credits in the second half of this year,” the CFO noted on the latest earnings call.
The Benchmark analyst further added that the firm maintains its convition in Rivian‘s “ability to scale profitably and command a premium valuation multiple relative to peers.”
To Legg, the “near-term volatility from policy shifts is outweighed by the medium-term production and margin expansion opportunity.”
In the latest earnings call, McDonough had said that, despite believing that Rivian‘s “long term opportunity to drive meaningul growth and profitability remains strong,” recent policy changes would impact the results and cash flow of the business.
It included the lack of revenue from regulatory credits, but also the tariffs, “which had a minimal impact during the second quarter but are expected to have a net impact of a couple thousand dollars per unit for the remainder of 2025.”
