Rivian Automotive Considers Licensing Electrical Architecture and Autonomous Software
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy RIVN?
Source: seekingalpha
- Competitive Market Pressure: Rivian CEO RJ Scaringe emphasized that without high levels of autonomy and software-defined vehicles, the company risks losing market share, indicating a pressing need for technological innovation to maintain competitiveness.
- Cost Reduction Potential: UBS analyst Joseph Spak noted that if legacy automakers could share a common software platform, it would lower EV manufacturing costs and reduce capital intensity, potentially leading to a more homogenized industry that tests brand positioning capabilities.
- Platformization Trend: Analysts foresee an automotive industry evolving similarly to the smartphone market, with Rivian potentially filling the Android role while Tesla may take on the Apple role, indicating a fundamental shift in market dynamics.
- Collaboration and Challenges: Key questions arise regarding whether Rivian's desire to sell vehicles aligns with its ambition to become a foundational architecture/software platform, and how its partnership with Volkswagen will influence the licensing of its autonomous software.
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Analyst Views on RIVN
Wall Street analysts forecast RIVN stock price to rise
18 Analyst Rating
8 Buy
7 Hold
3 Sell
Moderate Buy
Current: 16.520
Low
10.00
Averages
17.78
High
25.00
Current: 16.520
Low
10.00
Averages
17.78
High
25.00
About RIVN
Rivian Automotive, Inc. is an automotive technology company, which is engaged in developing and manufacturing category-defining electric vehicles (EVs) as well as vertically integrated technologies and services. The Company's R1 platform consists of two vehicles: the R1T, a two-row five-passenger pickup truck, and the R1S, a three-row seven-passenger sport utility vehicle (SUV). In the commercial market, the Company offers a Rivian Commercial Vehicle (RCV) platform. The vehicle on this platform is the Electric Delivery Van (EDV), designed and engineered by Rivian in collaboration with Amazon. The Company also offers FleetOS, its proprietary, end-to-end centralized fleet management subscription platform. It also offers a variety of services, including vehicle repair and maintenance, financing, insurance, joint venture, software subscriptions, and vehicle accessories, among others. Its other services include vehicle electrical architecture and software development services, and more.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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