Rivian Automotive (RIVN) is being sized up by analysts after its AI & Autonomy Day showcased a new in-house autonomy chip and Gen 3 computer, a “Large Driving Model” AI stack, and the Rivian Assistant in-car AI. The company detailed Universal Hands-Free driving on over 3.5 million miles of North American roads via an Autonomy+ paid subscription, plus plans to add LiDAR and radar on future vehicles with an eventual target of Level 4 capability and potential robotaxi applications.
Needham reiterated its Buy rating on the electric vehicle maker and boosted its price target to $23 following the AI & Autonomy Day event, which increased its confidence in Rivian’s (RIVN) positioning as software (and now AI)-defined vehicles increasingly become industry table stakes. Rivian’s (RIVN) vertical integration allowing for fuller control driving faster learning and feature iterations across driver interface and autonomy technology was noted to underpin a durable competitive advantage and strengthened the firm’s conviction in the longer term autonomy roadmap and points of differentiation vs. legacy OEMs.
“RIVN showcased a full technology stack featuring in-house developed silicon, compute architecture, a foundational Large Driving Model, and a vertically integrated software platform driving separation vs. legacy OEMs still dependent on third-party suppliers, with RIVN able to drive faster iterations and cost optimizations feeding a growing competitive advantage supporting higher confidence in longer term estimates,” highlighted analyst Chris Pierce.
Morgan Stanley stayed cautious on Rivian (RIVN) after the event. “RIVN is developing a suite of hardware and software offerings to remain competitive in an Auto 2.0 world. However, several risks remain around demand, potentially limiting data capture needed to reach higher levels of autonomy, and thus its path to profitability,” noted analyst Andrew Percoco. The firm has an Underweight rating on Rivian (RIVN) and a price target of $12.
Wells Fargo has an Equal Weight rating on Rivian (RIVN). Analyst Colin Langan said the enthusiasm in the stock is a testament to consumer and investor optimism about the company’s disruptive technology, product and brand strategy, and high-powered partnerships. “However, the company has a low margin for error in all aspects of its business. Its limited production and commercial history leave much to be seen. Rivian must prove it can acquire the customer base while maintaining low advertising costs,” he warned.
Shares of Rivian (RIVN) edged 0.3% higher in premarket trading on Friday after shedding 6.1% on Thursday. The EV stock is up more than 23% on a year-to-date basis.