RBC Urges Caution On Rivian Ahead Of AI Day

Rivian RIVN heads into its Autonomy and AI Day on December 11 with its stock up 36% this year, but RBC Capital isn't ready to get swept up in the excitement. Analyst Tom Narayan reiterated a Hold rating and a $14 price target, saying Rivian is still very much a show-me story despite the buzz around the upcoming R2 SUV and a solid Q3.

Narayan does see upside in Rivian's tech push. He called the move toward Level 3 autonomy an important step and said in-sourcing the technology could eventually turn into a real profit opportunity something Rivian needs given its liquidity pressures. He also expects the company to follow Tesla with a subscription model, though at lower price points.

Even so, he warned that Rivian's impressive R1T and R1S don't erase its losses or the growing competition in a slowing EV market. For him, the true test isn't the December event but whether Rivian can scale the R2 and R3 profitably.