Dec 12 (Reuters) – Shares of Rivian Automotive surged 18% on Friday as analysts issued bullish commentary on the electric pickup truck and SUV maker’s efforts to develop a custom chip for self-driving features and its integration of artificial intelligence.
The stock had closed about 6% lower on Thursday after the company’s announcements at its first Autonomy and AI Day, where it said it would shift away from Nvidia’s processors that power autonomous driving and had launched a paid package for self-driving features.
Rivian’s shares rose 17.9% to $19.37, its highest in nearly two years. The stock had risen about 24% this year, as of Thursday’s close.
The company’s new R2 model cars, which are expected to roll out first half of 2026, will carry the new chips.
The self-driving and driver-assistance systems still require human oversight. The company expects to launch “eyes-off” functionality in 2026.
“The event exceeded our expectations and cements our view for Rivian to become the number 2 North America EV player, even leapfrogging Tesla right now in certain AI-integration areas,” James Picariello, senior analyst at BNP Paribas said.
Brokerage Needham and Co raised its price target by 64% to $23 per share, citing increased confidence “in Rivian’s positioning as software-defined vehicles increasingly become industry table stakes.”
Rivian’s custom self-driving and AI chip, dubbed the Rivian Autonomy Processor, will be produced by Taiwan Semiconductor Manufacturing Co.
The company also unveiled a new paid driver-assistance package called Autonomy+, priced at $2,500 in a one-time payment or $49.99 per month, significantly undercutting Tesla’s $8,000 price to buy its Full Self-Driving system outright or $99 per month as a subscription.
(Reporting by Akash Sriram in Bengaluru; Editing by Tasim Zahid)
Comments