Rivian Stock Spikes After Receiving a UBS Rating Upgrade

On Tuesday, Rivian Automotive’s shares surged after UBS upgraded the electric vehicle (EV) maker’s rating from Sell to Neutral.

The California-based carmaker’s stock jumped 3.69% to $8.71 per share on April 16, snapping a four-session losing streak. Furthermore, market analysts anticipate a 1.23% gain to $8.60 apiece in the following trading day.

Investment bank UBS said Rivian had overcome its mid-term hurdles and stabilized its position amid the aggressive EV price war. However, the financial institution retained its 2024 price target for the automaker at $9.00 per share.

Hence, investors can look forward to 3.33% growth throughout this year despite intensifying competition amid a cooling EV market. Moreover, Rivian’s guidance may change depending on the results of its next earnings report on May 17.

In addition, UBS reiterated that the $9.00 price target assumes sales of only $4.50 billion next year. If Rivian hits sales of $5.10 billion, the upper end of the projections, it may trigger a years-long stock rally.

According to industry watchers, the upcoming release of the R2 SUV between 2026 and 2027 can push the brand to overtake its competitors. The Rivian R2 surpasses current-generation EVs in most benchmarks while priced considerably cheaper at $45,000.00 for the base model.

UBS Lauds Praises New Rivian Charging Software

UBS analysts stressed that poor charging infrastructure holds Rivian and other American EV makers back. Most cities in North America have insufficient charging stations, most of which deliver subpar performance.

The Tesla Supercharger network currently offers the best charging quality and fastest charge times. As a result, every US-based EV brand has transitioned to using the NCAS charging port so their models can use Tesla’s charging systems.

Unfortunately, the rollout of Supercharger stations has been slow, forcing drivers to settle for less reliable options. Thus, in its latest software update, Rivian provided users with charging data that helps identify which chargers work and at what capacity.

Lastly, UBS praised the innovation, saying it would allow drivers to avoid wasting time on substandard charging stations. Moreover, since they can access the information anytime, users can plan their routes with the best charger locations in mind.