Rivian Automotive’s next R2 model could take advantage of a rebound in demand for electric vehicles in the U.S., TD Cowen said. The bank upgraded the electric car maker to a pending buy. Analyst Itai Michaeli also raised his price target to $20 from $17, suggesting a 26% upside from Monday’s closing price. Michaeli said the upgrade follows Rivian’s recent trend of detail-on-demand for its new R2 SUV model. Starting at $45,000, Rivian’s R2 model is cheaper and smaller than the company’s R1S SUV, which has a starting price of $80,000. The R2 looks similar to the R1S, but has only five seats, two fewer. RIVN 1Y Mountain RIVN 1Y Chart “We see full-fledged R2 demand at 212-335,000 units, suggesting upside potential to the ’27 consensus. We like the risk/reward of the R2 launch as the stock is down ~20% year-to-date,” Michaeli wrote. The analyst said the R2 launch is consistent with his theory of an impending recovery in U.S. electric vehicle demand. “Our recently introduced (March 2026) R2 demand model suggests potential full-scale demand above current consensus, making us more optimistic,” he said. “With R2 launching in the first half of 2026, this vehicle will have the added benefit of being a forerunner for next-generation EVs with L3/L4 hardware.” Rivian Automotive shares have fallen 19% this year, but are up 45% over the past 12 months.
