Written by Cláudio Afonso | LinkedIn | X
Rivian chief executive RJ Scaringe flew to New York earlier this week to attend on Wednesday the Bernstein’s Annual Conference where he revealed that the R3, expected to be launched in early 2026, will be priced at “mid to high $30,000s”.
Following the conference on Wednesday, Scaringe visited Morgan Stanley’s headquarters in Manhattan on Thursday. In a new research note released on Friday, Morgan Stanley analyst Adam Jonas highlighted Rivian‘s unique position in the automotive industry, especially in comparison to Tesla.
He emphasized Rivian’s potential to scale a fully integrated software stack essential for capitalizing on AI opportunities, noting that Rivian’s market value is currently just 1/60th of Tesla’s.
“Mr. Scaringe also emphasized Rivian’s structural advantages in their fully integrated software and perception stack and the opportunity for partnerships,” Jonas stated. The discussion, which engaged both automotive and technology investors, focused significantly on these strengths.
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The bank also stressed the importance of Rivian’s management in controlling the company’s financial burn rate and mitigating equity dilution risks. This, they concluded, is crucial for maximizing the strategic value of Rivian‘s AI initiatives.
Maintaining an Overweight rating on Rivian shares, Morgan Stanley set a price target of $13, implying an upside potential of 18.50 percent based on the last closing price at $10.97 per share.
At the Bernstein conference, the chief executive said that the mid-size SUV space is “the largest addressable market” in California right now adding that Rivian believes that it will continue to happen in the future.
“The largest addressable market that we see and we believe will continue is in the midsized SUV space, and that puts us price point-wise below $50,000, north of $40,000, so in the $40,000 to $50,000 range,” the CEO said.
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In the same interview, the chief executive acknowledged that from an investor’s perspective, the second quarter will appear less favorable due to the plant shutdown in April. The suspension lasted four weeks, significantly impacting production at the plant in Normal, Illinois.
Regarding cost optimisation, the chief executive disclosed that the company was able to reduce the components in the battery pack from 41 to 16.
Rivian‘s factory in Normal, Illinois, is currently filled with the 2025 Rivian R1S in its final form, devoid of any testing wraps. As of today, the official date for the launch of the refreshed R1T and R1S models is still unknown.
Billionaire George Soros’ investment firm, Soros Fund Management LLC, has added $154.16 million in principal amount of Rivian’s 4.625 percent convertible notes due 2029 in the first quarter, equivalent to 191.44 million shares.
Last week, the electric vehicle maker unveiled a series of incentives to boost sales and clear out inventory of its 2023 and 2024 R1 models, including the R1S SUV and R1T truck.
Written by Cláudio Afonso | LinkedIn | X
