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Rivian Automotive (RIVN) stock is in focus after the company said it has now started production of its R2 midsize electric SUV at its Normal, Illinois, facility.
The automaker is committed to delivering at least 22,000 R2 vehicles this year, which, if achieved, would make it one of the fastest-scaling new electric vehicle (EV) launches in U.S. history.
At the time of writing, Rivian stock is down more than 15% versus its year-to-date high.
Significance of the R2 for Rivian stock
R2 production start is a significant de-risking event for RIVN shares, especially since the Normal facility was recently damaged by a tornado.
But management still achieved the milestone in time, signaling impressive operational maturity.
Plus, R2 represents Rivian’s "Model 3” moment. While R1 is a luxury niche product, this midsize electric SUV targets the mass market.
It’s designed to be 50% cheaper to build, which is the primary catalyst for RIVN’s goal of positive gross margin by late 2026.
All in all, with deliveries starting this spring, R2 allows Rivian to finally leverage its plant capacity, moving from a low-volume startup to a high-volume manufacturer.
The Bull Case for RIVN Shares
The broader investment thesis for Rivian shares extends well beyond vehicle sales.
RIVN is developing its proprietary RAP1 AI chip to cut reliance on Nvidia (NVDA), rolling out Autonomy+ as a $2,500 drive-assistance subscription, and positioning the R2 fleet as a data-collection platform for training its large driving model.
Moreover, the Nasdaq-listed firm has secured a deal with Uber (UBER) that includes up to $1.25 billion in investment tied to a robotaxi partnership built around the R2.
Its $5.8 billion partnership with Volkswagen, order for over 100,000 Amazon (AMZN) delivery vans, a $6.6 billion DOE-backed loan, and a recent collaboration with Redwood Materials on battery recycling for energy storage are among other reasons to own this EV stock in 2026.
How Wall Street Recommends Playing Rivian
Investors should also take heart that some Wall Street analysts continue to see significant upside in RIVN stock.
While the consensus rating on Rivian Automotive is only a “Hold,” price targets on the EV firm go as high as $25, indicating potential upside of another 47% from here.
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