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Investing.com -- Needham says there is strong consumer survey results ahead of the launch of its mid-size R2 SUV, which it said could significantly expand the electric vehicle maker’s addressable market.
The brokerage said the R2 which is expected to sell for about $50000, positions Rivian to move beyond the higher-priced R1 line and tap into a larger segment of the U.S. vehicle market.
Needham argued that current consensus delivery expectations for the R2 in fiscal 2026 are modest, leaving room for upside if demand materializes.
A Needham survey of 100 U.S. consumers in cities with relatively low electric vehicle penetration, including Charlotte, Nashville, Atlanta, Cincinnati and Cleveland found 60% awareness of the Rivian brand.
Perceptions skewed favorable, with 41% of respondents viewing the company positively or somewhat positively, and only 3% expressing negative views.
Brokerage reiterated a Buy rating and $14 price target on Rivian. The stock’s valuation remains attractive at current levels, as per analysts.
Purchase intent for the R2 was also encouraging, according to the survey. About one-third of respondents said they would likely consider buying Rivian’s mid-size SUV if priced competitively, while nearly half were undecided and 20% were unlikely to purchase.
Needham said this suggests Rivian could attract new customers with targeted marketing and growing brand recognition.
The firm said satisfaction among early Rivian vehicle owners and the R2’s positioning closer to the average new vehicle price point should further support adoption.