Rivian’s (NASDAQ:RIVN) stock upcoming electric SUVs are already drawing a large amount of interest from consumers and positive buzz from media outlets and Wall Street analysts. I expect the latter trends to continue and intensify in the coming months, lifting RIVN stock in the process.
Other positive catalysts for the shares in the medium term will be increased optimism about the outlook for EVs in general and new developments involving RIVN’s revenue from large companies. Given all of these points, I remain upbeat about RIVN stock and continue to advise long-term investors to buy the shares.
Rivian Unveils Two, Much More Affordable EVs
Rivian launched two new EVs in March. Its R2 SUV will be slightly smaller and much more affordable than its existing offerings. Specifically, the EV “will start at $45,000,” according to Elektrek, the EV’s size will be similar to that of Tesla’s (NASDAQ:TSLA) Model Y.
While the R2 had been widely anticipated, Rivian surprised everyone by also introducing the R3 which will be smaller and more affordable than the R2. CEO R.J Scaringe noted that the R3’s wheelbase will be five inches shorter than the R2, but the company did not reveal any information about the R3’s price.
Rivian will also sell a variation of the R3 called the R3X. The latter EV will have “more dynamic abilities, both on and off road,” the firm stated. A number of media outlets labeled the R3X a “sports vehicle.”
Both EVs will be able to be charged from 10 capacity to 80% capacity in just 30 minutes and the three-motor versions of the vehicles will be able to accelerate from 0 miles per hour to 60 miles per hour in less than three seconds. Also impressively, “R2 and R3 will provide dramatically enhanced autonomous capabilities” compared with Rivian’s previous offerings, the company reported.
Rivian is expected to start producing the R2 in the first half of 2026, and the production of the Q3 is expected to start shortly thereafter.
Positive Reactions From Consumers, Media, and the Street
In a very positive sign for Rivian and RIVN stock, consumers obtained 68,000 reservations for the R2 just one day after the EV was announced, the company reported. The high number of reservations, which required a $100 refundable deposit, shows that many consumers are enthusiastic about the upcoming EV.
The reaction of media outlets to the new EVs also appears to have generally been very positive. For example, Elektrek wrote that “Rivian gets the details right,” while the EVs included many “neat things..” TechCrunch labeled the R3 “cute as hell.”
Multiple banks were also enthusiastic about the new EVs. Bank of America wrote that the R2 may enable the automaker to “break more into the mass market segment, which represents about half of total U.S. auto sales,” And Piper Sandler gushed that the R3 “could be one of the most compelling designs on the market when it is released,” Piper upgraded the shares to “overweight” from “neutral” and raised its price target on the name to $21 from $15.
Other Positive Catalysts
The Street is currently bearish about the EV market in general, dragging down the shares of all the companies in the space. But the prestigious tech research firm Gartner expects the global EV market to continue growing relatively rapidly.
Specifically, the firm predicts that EV sales will rise to “20.6 units” in 2025 from “18.4 million units” in 2024. And in more encouraging news for EV makers, Gartner believes that “by 2027” a high number of EVs will be less costly to make than their similar gas-powered vehicles. Given these points, I’m confident that, in the longer term ,the Street will become much less bearish on EVs,
Finally, as I’ve pointed out in past columns, Rivian has already made a huge deal with Amazon (NASDAQ:AMZN), while AT&T (NYSE:T) is testing Rivian’s EVs. In the medium term and long term, I expect the automaker to announce multiple, new, lucrative agreements with large corporations.
On the date of publication, Larry Ramer held long positions in RIVN and AMZN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.