1 day ago
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Prosper Junior Bakiny, The Motley Fool
Tue, May 19, 2026 astatine 4:50 AM CDT 5 min read
The electrical conveyance (EV) marketplace is experiencing a slowdown. According to immoderate data, U.S. EV income dropped by 27% twelvemonth implicit twelvemonth successful the archetypal quarter. Investors are selling disconnected shares of immoderate notable EV makers, possibly partially arsenic a effect of this. For example, Rivian Automotive (NASDAQ: RIVN) has seen its banal diminution by 30% twelvemonth to date, trading a spot beneath $14 per stock arsenic of this writing. However, immoderate analysts expect Rivian to bounce backmost and execute good implicit the adjacent year.
Is determination plentifulness of upside ahead?
Mickey Legg, an expert astatine The Benchmark Company, has a $25 terms people for Rivian. That implies an upside of astir 78.6% from its existent levels. Even though the EV marketplace is facing immoderate challenges, respective developments astatine Rivian whitethorn warrant Legg's enthusiasm. First, the EV maker's latest fiscal results looked coagulated connected the surface. The company's gross of $1.4 cardinal was 11% higher than the year-ago period. Rivian's deliveries besides climbed 20% twelvemonth implicit twelvemonth to 10,365.
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Second, Rivian began deliveries of its much-anticipated mass-market model, the R2, to its employees and said it would commencement shipments to outer customers successful the coming weeks. The R2 is overmuch cheaper than Rivian's erstwhile models. It could assistance the institution grow its reach. Third, Rivian precocious announced it was expanding the capableness of its Georgia works to 300,000 vehicles per year, up from its erstwhile extremity of 200,000. It won't beryllium up and moving until 2028, but this inaugural has important implications for Rivian's medium-term outlook.
The determination could assistance little portion accumulation costs, thereby improving its margins. Lastly, Rivian struck a woody with Uber Technologies to present up to 50,000 autonomous vehicles to the ride-hailing elephantine for its robotaxi service. The concern volition effect successful an equity concern of up to $1.25 cardinal from Uber into Rivian, with astir $550 cardinal to beryllium made by year-end, taxable to definite conditions. These developments overgarment a reasonably agleam representation for Rivian's future.
Some reasons for skepticism
Looking much intimately astatine Rivian's first-quarter results reveals a somewhat much mixed picture. The company's gross grew astatine a bully clip, but automotive gross (including conveyance and regulatory recognition sales) declined slightly, adjacent arsenic deliveries increased. Rivian sold a higher premix of commercialized vans successful the archetypal quarter, which outgo little per portion than its lawsuit vehicles.
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