DA Davidson Upgrades Rivian From Underperform — Here’s What Still Has to Go Right

DA Davidson has upgraded Rivian Automotive (NASDAQ: RIVN) to Neutral from Underperform, citing valuation aft a crisp pullback successful the stock. The steadfast kept its terms people unchanged astatine $14, signaling a much cautious signifier of optimism alternatively than outright bullishness. For semipermanent investors, the determination is simply a floor-finding signal, not a greenish light.

So acold this year, shares of RIVN person mislaid astir 22%, but implicit the past twelvemonth they stay up 14.38%.

DA Davidson's upgrade is driven purely by valuation reset alternatively than immoderate cardinal improvement. Much of the caller pullback stems from a mixed capitalist absorption to the pricing of aboriginal R2 trims, which came successful astir 55% higher than expected for immoderate consumers. The steadfast launched astatine $57,990, good supra the wide advertised $45,000 introduction price, with the cheaper variant delayed until precocious 2027. DA Davidson views this pricing spread arsenic a existent hazard to Rivian's quality to present 20,000 to 25,000 R2 units this year, making execution the cardinal question for the stock.

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Rivian designs and manufactures electrical vehicles, including the R1T pickup, R1S SUV, and commercialized transportation vans. The institution achieved a meaningful milestone successful 2025, posting its archetypal afloat twelvemonth of affirmative gross nett astatine $144 million. Revenue for afloat twelvemonth 2025 came successful astatine $5.39 billion, up 8% twelvemonth implicit year. A associated task with Volkswagen Group generated $836 cardinal successful bundle and services gross for the afloat year. The institution besides precocious announced a woody to proviso up to 50,000 R2 vehicles to Uber's robotaxi fleet, with Uber investing up to $1.25 cardinal tied to deployment milestones.