Rivian Automotive shares climbed 2.7% to $17.75 by midday Wednesday, outperforming a broader market that drifted lower. The electric vehicle maker's stock briefly touched an intraday high of $18.40 before easing, with roughly 26.2 million shares changing hands by late morning—below the typical daily volume but still keeping Rivian among the more actively traded EV names.
The catalyst for the move was AT&T's announcement that its 5G network will power connectivity for Rivian's upcoming R2 SUV, which is set to open for customer orders on June 9. AT&T said its 5G service will enable over-the-air software updates, infotainment, and real-time features for the R2, with coverage extending across the U.S. and Canada. Matt Harden, AT&T's vice president of Connected Solutions, emphasized that connectivity has become "central" to modern vehicle design. Rivian's vice president of business development, Tom Solomon, added that the technology journey "doesn't stop there."
The R2 represents a critical step for Rivian as it seeks to broaden its customer base beyond the high-end, lower-volume R1 pickup and SUV models. The smaller, more affordable R2 is designed to compete directly with Tesla's Model Y, the dominant player in the U.S. electric crossover segment. Rivian lists the R2 Performance Launch Edition at a starting price of $57,990, with an EPA-estimated range of 330 miles, 656 horsepower, and a 0-60 mph time of 3.6 seconds. The company plans to begin deliveries of the Performance trim within two to six weeks after order confirmation, followed by the Premium trim at the end of 2026 and the Standard trim in 2027.
New federal data rates the 2027 R2 Performance AWD with 21-inch wheels at 105 MPGe combined and 32 kWh per 100 miles, with a total range of 330 miles. MPGe, or miles per gallon equivalent, is the EPA's metric for comparing EVs with gasoline vehicles. Actual driving range may vary based on conditions.
Analysts remain cautiously optimistic. TD Cowen reiterated a Buy rating on Rivian with a $20 price target, according to MarketBeat data cited by Benzinga. The average analyst price target stands at $18.57, with a consensus Hold rating. The stock's recent gains come despite ongoing financial challenges. Rivian reported first-quarter revenue of $1.38 billion and a net loss of $416 million in its latest filing. The company held $4.83 billion in cash and short-term investments as of March 31, and Volkswagen injected a second $1 billion equity tranche on April 30.
However, risks remain significant. Rivian acknowledged in its filing that it has accumulated substantial losses, may need additional capital, and faces uncertainty around warranty costs for new launches like the R2. If production ramps slowly, if buyers balk at the nearly $58,000 starting price for the first version, or if high interest rates keep consumers on the sidelines, the launch premium baked into the stock could quickly evaporate.
The broader market retreated Wednesday, with the Dow Jones Industrial Average falling 0.54%, the S&P 500 losing 0.36%, and the Nasdaq Composite slipping 0.50% as oil prices climbed and Middle East tensions weighed on sentiment.
