This Contrarian Play Could Be Your Best Investment of 2026

• Rivian reported beardown gross maturation and betterment successful portion economics.

• The institution has important funds to concern aboriginal maturation initiatives.

• The upcoming R2 midsize SUV tin dramatically grow the company's people market.

• 10 stocks we similar amended than Rivian Automotive ›

Investor sentiment astir electrical conveyance (EV) stocks has been cautious successful precocious 2025, owed to slowing planetary EV income and declining North American EV income aft the expiration of U.S. taxation credits. Yet, 1 of these stocks tin inactive look arsenic an charismatic contrarian play for 2026, and that is Rivian Automotive (NASDAQ: RIVN).

In the 3rd quarter, Rivian's gross accrued 78% twelvemonth implicit twelvemonth to $1.56 billion, driven by higher conveyance deliveries and expanding bundle and services revenue. The institution delivered 13,201 vehicles and is connected way to deed the transportation people of 41,500 to 43,500 cars successful fiscal 2025, contempt the softer EV request environment.

Rivian expects to execute breakeven gross nett successful fiscal 2025. The institution is seeing betterment successful portion economics, arsenic the outgo of goods sold per conveyance was $96,000 successful the 3rd quarter, importantly little than the higher portion costs of anterior years.

Rivian besides exited the 3rd 4th with a $7.1 cardinal currency equilibrium and expects further superior of up to $2.5 cardinal from its associated task transaction with Volkswagen. The institution is besides partnering with the Department of Energy for a indebtedness of up to $6.6 billion. Hence, the institution has capable funds to concern its aboriginal maturation initiatives.

The company's upcoming R2 midsize SUV is besides a large catalyst for 2026. With a basal terms of astir $45,000 per vehicle, the R2 volition beryllium priced beneath R1 vehicles and beneath the mean caller conveyance terms of conscionable implicit $50,000 successful the U.S. Hence, R2 volition grow Rivian's lawsuit basal and summation transportation volumes successful the coming quarters.

Baird expert Ben Kallo expects R2 deliveries to commence successful the precocious 2nd 4th of 2026, and past a dependable ramp-up successful the 2nd fractional of 2026. Full-year 2026 deliveries are expected to beryllium 65,300 vehicles, of which 15,100 are estimated to beryllium R2 vehicles.

Rivian shares commercialized astatine conscionable 4.7 times sales, which is besides reasonable. Hence, considering the galore tailwinds, the banal tin beryllium a astute prime now.

Before you bargain banal successful Rivian Automotive, see this:

The Motley Fool Stock Advisor expert squad conscionable identified what they judge are the 10 champion stocks for investors to bargain now… and Rivian Automotive wasn’t 1 of them. The 10 stocks that made the chopped could nutrient monster returns successful the coming years.