Rivian Jumps After UBS Upgrade Bets on R2 Demand

Rivian received an upgrade to buy from UBS analyst Joseph Spak, and the stock tore higher on the call. Rivian shares rose 10.4 percent in morning trading on the Monday of the upgrade, according to the Motley Fool. UBS cited a 19 percent sell-off in Rivian shares over the past month and said it sees a buying opportunity based on solid demand for the company new R2 electric SUV.

The R2 is doing the work. Rivian reported a 38.3 percent revenue increase in the third quarter of 2026 and raised its full-year delivery guidance to 67,000 to 70,000 vehicles. With the launch of the more affordable R2 SUV, sales at the EV maker are up 46 percent over last year, with the new model outselling the R1T and R1S combined.

Spak predicts Rivian will see continued positive gross profit margins in the first quarter of 2027, with higher-margin software and services sales helping to drive growth. But he warns Rivian will continue to burn cash and will likely need to sell shares and take on debt to fund its operations through at least 2029. Rivian delivered 19,248 vehicles in the third quarter, up 45 percent, and its cars still lost 80 million dollars at the gross level last quarter, with 1.12 billion dollars of free cash flow burned.