Rivian’s RIVN long-term product strategy does not involve offering an extended-range electric vehicle (EREV) or any hybrid configuration that requires adding an engine. The automaker isn’t contemplating such options, nor does it see them aligning with its vision for the future.
Still, Rivian acknowledges that the broader journey toward electrification involves offering consumers genuine choice. As the industry evolves, different manufacturers will carve their own paths, some leaning into hybrid or EREV models, others committing fully to battery-electric vehicles. Ultimately, Rivian believes all of these directions are converging toward an automotive future in which everything is electric, software-defined and capable of high levels of autonomy.
With that conviction, the company continues to double down on pure electrification. Rivian sees the midsize SUV segment, soon to be anchored by the upcoming R2 and its follow-on model, the R3, as a sweet spot for all-electric design. Per the company, this segment is ideally suited to a fully electric architecture that can deliver strong performance, competitive range and pricing that stands toe-to-toe with internal combustion or hybrid alternatives. RIVN carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
RIVN’s Price Performance, Valuation and Estimates
Rivian has outperformed the Zacks Automotive-Domestic industry and its peers, Lucid Group, Inc. LCID and Tesla, Inc. TSLA, year to date. RIVN’s shares have gained 32.4% compared with the industry’s growth of 16.2%. Shares of LCID have plunged 57.7%, while shares of Tesla have gained 8.9% in the same period.
Image Source: Zacks Investment Research
From a valuation perspective, RIVN appears overvalued compared to the industry. Going by its price/sales ratio, the company is trading at a forward sales multiple of 3.25, higher than the industry’s 3.42. Lucid is trading at a forward P/S ratio of 1.72, while Tesla is trading at 13.8.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RIVN’s 2025 and 2026 loss per share has narrowed by 2 cents and 5 cents, respectively, in the past 30 days.
Image Source: Zacks Investment Research
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>Tesla, Inc. (TSLA) : Free Stock Analysis Report
Lucid Group, Inc. (LCID) : Free Stock Analysis Report
Rivian Automotive, Inc. (RIVN) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
