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UBS Upgrades Rivian to Buy as R2 Ramp and Margin Recovery Come Into Focus
UBS upgraded Rivian Automotive to Buy from Neutral on November 2 and kept a $17 price target, lifting the stock 4% to $12.59 in morning trading, though it remains down 36% year to date. The move follows Rivian's Q3 2026 report, in which revenue rose 38.3% year on year to $2.155 billion and the adjusted loss of $0.48 per share beat expectations, with the company also raising its full-year guidance to 67,000 to 70,000 vehicles. Automotive gross loss still stood at $80 million, helped by a tariff refund receivable and $81 million in regulatory credits, so the bull case depends heavily on the lower-priced R2 SUV and its margin trajectory.
Why it matters
For charging operators and procurement teams, Rivian's R2 volume and gross margin progress will determine how quickly its fleet and home-charging demand scales in the United States. Its reliance on regulatory credits to offset automotive losses is a reminder that near-term EV volumes remain sensitive to policy support.