Is Rivian Stock a Buy in 2026?​

Tesla pioneered the electrical conveyance (EV) industry. The EV person has proven a pugnacious enactment to follow. Upstart EV shaper Rivian Automotive (NASDAQ: RIVN) has recovered occurrence with its archetypal vehicle, the electrical motortruck R1T. But aft going nationalist with a ton of hype, the banal has declined much than 90% from its all-time high. There is crushed for hope, though.

The institution has made immoderate concern decisions that person worked retired well, and its upcoming R2 conveyance could beryllium a crippled changer erstwhile it arrives this year. Should investors bargain the banal for what's to travel successful 2026?

Where to put $1,000 close now? Our expert squad conscionable revealed what they judge are the 10 champion stocks to bargain close now, erstwhile you articulation Stock Advisor. See the stocks »

The biggest situation for a caller automotive institution is making the concern financially sustainable earlier moving retired of money. Rivian's gross borderline has improved alongside income growth, and you tin spot that margins person made important strides since 2024, adjacent arsenic gross has accrued modestly.

What happened? Rivian reengineered the plan and proviso concatenation of its R1T and R1S models to trim manufacturing costs. Additionally, Rivian has generated higher-margin gross from EV regulatory recognition income and bundle services.

As a result, Rivian's escaped currency travel losses person shrunk to little than $500 cardinal implicit the past 4 quarters. That's precise promising, considering Rivian inactive has $7 cardinal successful cash. It's a bully fiscal cushion for the institution arsenic it prepares to motorboat the R2, a mid-size SUV model, this year.

A batch is riding connected the R2 motorboat (no pun intended). It volition commencement astatine $45,000, overmuch little than the R1S's starting constituent of astir $78,000. Rivian hopes that the R2 volition assistance it go a mainstream automotive marque and present the measurement its factories request to run profitably, overmuch similar the Model 3 did for Tesla.

Analysts presently estimation that Rivian volition decorativeness the twelvemonth astatine astir $6.8 cardinal successful revenue, past leap up to $11.2 cardinal successful fiscal 2026 connected the tailwind of the R2 launch. The banal trades astatine a price-to-sales (P/S) ratio of 3. That looks similar a bargain compared to Tesla's P/S ratio of 3, but not truthful overmuch compared to accepted automotive companies, which commercialized astatine little than 1 times sales.

It mightiness beryllium worthy buying Rivian earlier the R2 motorboat arsenic a small, speculative investment. A beardown motorboat would apt bolster the market's assurance successful Rivian's trajectory and rise its valuation -- conscionable arsenic agelong arsenic investors recognize the downside hazard if Rivian swings and misses connected its accidental to entrench itself successful the broader conveyance marketplace with the R2.