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Despite the challenging near-term environment for EVs, UBS analysts see a potentially positive long-term outlook for Rivian, particularly with the upcoming launch of the R2 model, expected in 2026 with a starting price of around $45k. The success of the R2 model is deemed critical to Rivian’s equity story. InvestingPro analysis reveals that while Rivian maintains strong liquidity with a current ratio of 3.73 and holds more cash than debt, it faces profitability challenges with negative gross margins of -9.33%. In the meantime, Rivian’s focus on cost reduction and increased manufacturing efficiencies for the R1 models is essential. For deeper insights into Rivian’s financial health and future prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
Despite the challenging near-term environment for EVs, UBS analysts see a potentially positive long-term outlook for Rivian, particularly with the upcoming launch of the R2 model, expected in 2026 with a starting price of around $45k. The success of the R2 model is deemed critical to Rivian’s equity story. InvestingPro analysis reveals that while Rivian maintains strong liquidity with a current ratio of 3.73 and holds more cash than debt, it faces profitability challenges with negative gross margins of -9.33%. In the meantime, Rivian’s focus on cost reduction and increased manufacturing efficiencies for the R1 models is essential. For deeper insights into Rivian’s financial health and future prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
The survey findings suggested that the affordability of EVs is a concern, with only 35% of respondents considering EVs to be affordable compared to internal combustion engine vehicles. Rivian’s models, the R1S SUV and the R1T pickup, are priced at $75.9k and $69.9k respectively, which is above the average vehicle price in the U.S. of $47.9k and the average BEV price, including tax credits, of $57.4k. The potential removal of consumer clean vehicle tax credits, including those for leasing, could pose additional barriers to EV adoption. In 2024, it was estimated that nearly 59% of Rivian’s R1 models were leased.
Despite the challenging near-term environment for EVs, UBS analysts see a potentially positive long-term outlook for Rivian, particularly with the upcoming launch of the R2 model, expected in 2026 with a starting price of around $45k. The success of the R2 model is deemed critical to Rivian’s equity story. InvestingPro analysis reveals that while Rivian maintains strong liquidity with a current ratio of 3.73 and holds more cash than debt, it faces profitability challenges with negative gross margins of -9.33%. In the meantime, Rivian’s focus on cost reduction and increased manufacturing efficiencies for the R1 models is essential. For deeper insights into Rivian’s financial health and future prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, Rivian Automotive (NASDAQ:RIVN) Inc has been the focus of several analyst updates and strategic developments. BNP Paribas (OTC:BNPQY) Exane raised its price target for Rivian to $20, citing improvements in gross profit and strategic navigation of tariffs. The analyst highlighted Rivian’s disciplined approach to maintaining average selling prices, which is expected to strengthen its position for the R2 model launch in 2026. Meanwhile, RBC Capital Markets increased its price target to $14, reflecting a revised revenue forecast despite a downward adjustment in 2025 delivery guidance. The company plans significant capital expenditures to develop the R2 platform, necessitating a temporary plant shutdown in late 2025.
Cantor Fitzgerald maintained an Overweight rating with a $15 target, noting Rivian’s positive gross profit aided by regulatory credit sales, though expressing concern over reduced delivery forecasts and macroeconomic challenges. Stifel reiterated a Buy rating with an $18 target, confident in Rivian’s ability to meet significant goals, including achieving positive gross profit and launching the R2 model. Barclays (LON:BARC) maintained an Equalweight rating with a $14 target, recognizing Rivian’s advancements in autonomous vehicles and potential benefits from U.S. electric vehicle tax credits. These developments reflect a mix of optimism and caution among analysts as Rivian navigates a competitive electric vehicle market.
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