Rivian Unveils Autonomy Chip; Shares Pull Back After Rally
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Source: Benzinga
- Autonomy Technology Launch: On December 11, Rivian unveiled its proprietary Rivian Autonomy Processor chip, capable of processing five billion pixels per second, marking a significant advancement in its self-driving technology, with LiDAR-equipped R2 models expected by late 2026, which could drive future revenue growth.
- Subscription Service Innovation: Rivian introduced the Autonomy+ driver-assist subscription service priced at $2,500 upfront or $49.99 per month, aiming to create a new software revenue stream by offering a more competitive autonomous driving solution than Tesla, with a launch planned for early 2026.
- Stock Price Volatility Analysis: Despite Rivian's stock rising 14% over the past month and nearly 48% year-to-date, it recently pulled back 6.34% to $19.36 due to profit-taking, indicating a cautious market sentiment regarding its long-term growth potential.
- Market Outlook: Analysts have raised Rivian's price targets into the mid-$20s, reflecting optimism about its future deliveries and technological advancements, although concerns about new plant investments and costs persist, prompting investors to watch for stabilization around the $19.28 support level for potential buying opportunities.
Analyst Views on RIVN
Wall Street analysts forecast RIVN stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for RIVN is 13.98 USD with a low forecast of 7.55 USD and a high forecast of 25.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
5 Buy
8 Hold
5 Sell
Hold
Current: 19.710
Low
7.55
Averages
13.98
High
25.00
Current: 19.710
Low
7.55
Averages
13.98
High
25.00
About RIVN
Rivian Automotive, Inc. is an automotive manufacturer, which is engaged in developing and building category-defining electric vehicles (EVs) and accessories, as well as software and services that address the entire lifecycle of the vehicle. 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, software subscriptions and FleetOS solutions. Its value-added 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.
