Rivian stock jumps as JPMorgan raises target after strong Q2 deliveries

Shares of Rivian Automotive Inc. RIVN climbed more than 5% on Monday after JPMorgan raised its price target following the electric vehicle maker's stronger-than-expected second-quarter delivery results.

The stock RIVN rose about 6% to $19.75 during trading, outperforming the broader market as investors reacted positively to the company's improved delivery outlook and growing optimism surrounding its new R2 vehicle platform.

Last week, Rivian reported second-quarter deliveries of 12,194 vehicles, exceeding Wall Street expectations of roughly 11,000 vehicles.

The company also produced 12,613 vehicles during the quarter ended June 30.

JPMorgan raises target but keeps sell rating

JPMorgan analyst Rajat Gupta increased his price target on Rivian shares to $15 from $9 following the delivery report while maintaining a Sell rating.

The analyst raised his 2026 delivery forecast after the stronger quarterly performance.

"We are now forecasting 2026 deliveries of about 68,100 versus about 64,900 units prior, while leaving our 2027 estimate largely unchanged at about 146,000 units,"

Gupta wrote that the higher price target reflected stronger expected deliveries and "ongoing strides" in autonomous driving technology.

Despite the increase, Rivian shares continued trading well above JPMorgan's revised target.

The average Wall Street price target stands at approximately $18.40, also below the stock's current trading level.

R2 launch boosts investor optimism

Investor sentiment has been supported by expectations that Rivian's lower-priced R2 platform could significantly expand the company's addressable market.

The company's existing R1T pickup truck and R1S SUV generally sell for more than $80,000, limiting their potential customer base.

The upcoming R2 family of vehicles is expected to start at about $45,000, making Rivian's products accessible to a broader group of buyers.

The second quarter also marked the launch of the R2 vehicle, with deliveries expected to ramp through the remainder of the year.

Rivian raised its full-year 2026 delivery guidance to between 65,000 and 70,000 vehicles, up from its previous forecast of 62,000 to 67,000 vehicles.

Management attributed the stronger outlook to higher EDV and R1 deliveries as well as the introduction of R2 deliveries.

The stock has gained roughly 30% over the past three months, although it remains well below its record high of nearly $180 reached shortly after the company's 2021 initial public offering.

Analysts look ahead to earnings

Baird reiterated its Outperform rating and maintained a $23 price target following the delivery update.

The brokerage noted that second-quarter deliveries exceeded consensus estimates and increased nearly 14% from a year earlier, although the figure came in slightly below Baird's own higher forecast.

The company is scheduled to report second-quarter financial results after the market closes on July 30.

Investors are expected to focus on margins, cash burn and progress in ramping production of the R2 platform.

While Rivian's recent performance has strengthened investor confidence, the broader US electric vehicle market remains challenging.

EV adoption in the United States continues to trail Europe and China, and the expiration of the federal $7,500 EV purchase tax credit has added further pressure to demand.

Wall Street expects Rivian to reach profitability in 2030, when annual vehicle sales are projected to approach 427,000 units, a level analysts say is typically required for mass-market automakers to generate sustainable profits.