Wedbush Securities raised its price target on Rivian to $25 from $16 on Thursday as shares surged 15% to their highest level in nearly two years.
Analyst Daniel Ives lifted the target by 56% while maintaining an Outperform rating, citing the upcoming R2 launch and the company’s autonomy roadmap as key catalysts.
Based on Thursday’s closing price of $20.28, the new target implies 23.3% upside.
“2026 represents a significant year for the company with the launch of R2 in 1H26 expected to drive improving delivery metrics and improvements to its autonomy roadmap to tap into alternative revenue sources while strategically managing its cost structure given rising tariff risks and investments in its business,” Ives wrote.
Rivian produced 10,720 vehicles and delivered 13,201 in the third quarter, which the company said earlier this year would be its strongest due to demand driven by the expiring EV tax credit.
The fourth quarter figures are expected to be reported on the first few days of 2026.
The upgrade marks a reversal from August, when Ives lowered his target to $16 from $18 after second-quarter results, warning that Rivian “continues to be a work in progress as the company navigates through supply chain difficulties.”
Baird Also Raises Target
Baird separately raised its price target to $25 from $14 and upgraded the stock to Outperform earlier this week.
“We are upgrading Rivian to Outperform as we move into 2026, which is the year of the R2 launch,” analyst Ben Kallo wrote Thursday in a research note obtained by PriceTarget.
Baird expects the R2 to “be a boost” for demand, with which Rivian has struggled, “and thus by extension the stock as deliveries begin near mid-year.”
Both firms pointed to the autonomy roadmap Rivian presented at its AI & Autonomy Day event last week as a significant catalyst.
Software Update Rolls Out
The stock gains coincided with Rivian‘s rollout of one of its most significant software updates of the year on Thursday.
The release expands Universal Hands-Free assisted driving to over 3.5 million miles of marked roads in the US and Canada for second-generation vehicles.
The update also delivers Kick Turn for navigating sharp turns on Quad motor variants, RAD Tuner for performance customization, and Digital Key support allowing owners to share vehicle access with up to eight people.
Rivian shares have jumped 46% over the past twelve months and 36% in the past 30 days alone.
