Rivian’s shares may have faced pressure this year, but a significant market opportunity lies ahead for the electric vehicle (EV) maker. According to Benchmark analyst Michael Legg, Rivian is well-positioned to gain a substantial share of the massive EV market in the coming decade.
The US EV market is expected to grow significantly, with 78.5 million vehicles projected by 2035 and 89% of all vehicles being BEV or plug-in hybrid by 2050. In contrast, only 12% of vehicles on US roads are currently electric.
This year’s slow growth in EV sales has stalled due to various automakers reducing or postponing their launches. However, domestic EV production is expected to pick up in 2025 and accelerate further in 2026-27 as average selling prices (ASPs) fall and charging infrastructure expands.
Rivian stands out among emerging EV contenders, thanks to its capability to manufacture EVs domestically with in-house designed software. The company’s partnerships with Amazon and Volkswagen are significant, providing a revenue base and growth opportunities. A partnership with AT&T has also been formed, further solidifying Rivian’s commercial aspect.
Analyst Legg initiated coverage of RIVN with a Buy rating, citing the company’s highly rated vehicles, expected positive gross profit in the current quarter, and sufficient financial liquidity. The stock is set to offer investors a potential return of ~25% if the price target of $18 is met.
Source: https://www.tipranks.com/news/time-to-pull-the-trigger-says-benchmark-about-rivian-stock