EV maker Rivian saw its shares soar by more than 20% on November 5 after the company’s third quarter earnings results exceeded Wall Street expectations.
Reacting to the results, D.A. Davison has raised its price target on the EV stock from $13 to $15 on Tuesday, while maintaining a Neutral rating.
Based on Monday’s closing price of $16.41, the new target implies a downside of 8.6%.
In a new research note — obtained by PriceTarget — analyst Michael Shilsky wrote that the firm is “staying on the sidelines, for now, given the balance of risks and opportunities ahead.”
According to the analyst, the third quarter financial results were “a bit more of the same.”
Shilsky noted that it “is not necessarily a bad thing,” adding that the company continued to progress on the R2.
Rivian‘s upcoming mid-sized SUV, of which the entry-level variant is expected to be priced at $45,000, will be launched in the first half of 2026.
In the latest earnings call, founder and CEO RJ Scaringe reaffirmed that the company’s key priorities include the “preparation for the launch of R2 and development of our technology roadmap.”
Demand + Tariffs
“At the same time, R1 trends appear challenging, and key milestones like winter testing underpin 2026 funding,” Shilsky wrote.
Rivian achieved its highest quarterly deliveries between July and September, with over 13,000 vehicles.
The strong results were fueled by a surge in EV demand ahead of the September 30 deadline for the federal tax credit.
However, as the R1’s price exceeds the eligibility cap, Rivian customers could only take advantage of the credit when leasing a vehicle.
According to the analyst, “Rivian was also able to reduce tariff impacts from ‘a few thousand’ per vehicle to ‘a few hundred,’ and the company teased an Autonomy Day next month.”
In the latest earnings call, Chief Financial Officer Claire McDonough said that the EV maker was “just under $2,000 per vehicle of impact” in the third quarter.
“On a go-forward basis, we expect the impact to be a few hundred dollars per unit for new builds once these policies are fully in place,” the CFO stated.
Additionally, the company confirmed it is holding its Autonomy Day event on December 11, where it is expected to announce new features and its long-term roadmap.
Previous Notes
In a previous note, published after the second quarter results in August, the analyst had written that Rivian was “facing a skittish consumer, an expected loss of regulatory-credit income, and continued profitability challenges.”
D.A. Davidson’s price target on Rivian has varied between $13 and $15 since the first quarter results, which were published in May.
As of press time, the shares are trading 6.4% higher at $17.45 on Tuesday’s market session.
Since the beginning of the year, Rivian‘s stock has surged by over 31%.
