Rivian Stock (RIVN) Target Raised as Analyst Highlights Unique EV Opportunity

Rivian's stock (NASDAQ: RIVN) is experiencing renewed investor interest following a positive assessment from Tigress Financial. The firm reiterated a ‘Buy' rating and increased its price target, suggesting substantial upside potential.

Despite the boost from Wall St, RIVN currently trades 3.97% lower today, although is holding on to year-to-date gins of 18.9%.

Price Targets

Ivan Feinseth, the Tigress Financial analyst, raised the firm's price target on Rivian to $25 from $21, emphasizing Rivian's unique position to capitalize on accelerating electric vehicle (EV) demand. The revised 12-month target price suggests a potential return of over 50% from current levels, underscoring confidence in Rivian's growth trajectory.

Rivian's strategic initiatives, including a significant partnership with Volkswagen Group, are bolstering its technological and manufacturing capabilities. The collaboration involves an initial $1 billion investment from Volkswagen, with plans for up to $5 billion by 2026, to develop next-generation software-defined vehicle platforms. This partnership is expected to combine Rivian’s software expertise with Volkswagen’s global manufacturing prowess, enhancing Rivian's competitive edge and market reach.

Additionally, Rivian approved a new compensation package for CEO RJ Scaringe, potentially worth up to $4.6 billion over the next decade. This performance-based package, similar to Tesla's model for Elon Musk, aligns executive incentives with long-term company growth and profitability, setting aggressive performance targets for leadership.

The company's third-quarter 2025 results demonstrated significant growth, with revenue increasing by 78% to $1.56 billion. This surge was driven by a rise in EV deliveries as consumers sought to benefit from expiring federal tax credits. Rivian delivered 13,201 vehicles during the quarter, marking a 32% year-over-year increase. However, Rivian slightly lowered its full-year delivery guidance to approximately 42,500 units, anticipating weaker demand post-incentive.

In response to the expiration of a $7,500 U.S. federal EV tax credit and subsequent demand decline, Rivian announced plans to lay off approximately 600 employees, representing about 4.5% of its workforce. This move aims to streamline operations and reduce costs as the company prepares for the launch of its more affordable R2 SUV, slated for 2026. This strategic adjustment reflects the company's proactive approach to managing market fluctuations and optimizing resource allocation.

Today's raised price target, and a 20% gain over the past month appear to have given something for bulls to rally behind, despite the current price action. A breather after a rally can be healthy, and a cooling on the RSI could also be helpful in the long term.