Rivian's R2 model is expected to be a player in the midsize electric SUV segment

[Rivian HQ in Irvine]
JasonDoiy

Analysts are starting to factor in the upcoming R2 release into their financial models for Rivian Automotive (NASDAQ:RIVN [https://seekingalpha.com/symbol/RIVN]).

The R2 is a midsize electric SUV positioned beneath the brand’s premium R1 series. The R2 is now scheduled to enter production in the first half of 2026 at the company's Normal, Illinois, facility, with deliveries expected initially that year. The company has recently completed expanding the Illinois plant and has begun assembling validation builds, aiming for production volume of around 50,000 vehicles in 2026. Due to high demand and modest starting capacity, the R2 is expected to be in short supply well into 2027, with larger-scale output tied to a forthcoming Georgia factory that may not contribute volume until 2028.

Needham reiterated its bullish view on Rivian Automotive (NASDAQ:RIVN [https://seekingalpha.com/symbol/RIVN]) ahead of the electric vehicle maker's R2 launch, supported by what it sees as end-market diligence and a consumer survey conducted in low EV penetration metros.

"The size of the potential market opportunity for the R2 is encouraging when looking across current EV and ICE offerings at similar price points, and even more so vs. modest consensus FY26 R2 delivery estimates," updated analyst Chris Pierce. Needham's survey work found strong Rivian (RIVN [https://seekingalpha.com/symbol/RIVN]) brand awareness, limited negative perception, and encouraging purchase intent, which are factors seen as positioning Rivian (RIVN [https://seekingalpha.com/symbol/RIVN]) favorably to capture market share as the R2 enters the midsize SUV segment.

Needham reiterated its Buy rating and $14 price target on Rivian (RIVN [https://seekingalpha.com/symbol/RIVN]).

Shares of Rivian (RIVN [https://seekingalpha.com/symbol/RIVN]) rose 1.1% in Monday morning trading.

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