Key insights
- Rivian's stock saw a notable increase this week driven by investor anticipation for the R2 launch. Despite a general slowdown in EV demand, Rivian's strategic focus on the R2, with its expected lower price and advanced technology, has garnered positive attention. The upcoming R2 order invitations, demo drives, and initial deliveries on June 9th are key catalysts. While still speculative and not yet profitable, the company's valuation based on future revenue expectations is attracting long-term investors betting on the R2's success in the mass market.
Rivian has had a relatively successful start-up as an electric vehicle (EV) company. While EV demand growth has slowed, several EV makers have throttled production plans or even exited the market. Rivian, however, has maintained its slow-and-steady path toward the launch of its next-generation R2.
After delivering over 40,000 EVs last year, the company expects the lower price and more advanced technologies to propel the R2 into the mass market. Management expects to sell closer to 65,000 units this year. The inflection point is next week, on June 9, when invitations for orders are sent to reservation holders, demo drives begin, and the initial R2s are delivered to customers.
Investors wanting to get in ahead of the first sales data reports have been driving the stock higher. Rivian is still a speculative stock, as the company won't be profitable this year. Its valuation, based on 2026 revenue expectations, isn't excessive, however. A forward price-to-sales ratio of about 3 has some long-term investors willing to speculate on the R2's success.