Rivian Automotive, Inc. (NASDAQ:RIVN) CEO RJ Scaringe said the company is entering a pivotal phase, with improving economics and strong product momentum expected to drive performance in the second half of the year.
- See how the EV company fared in its latest quarter.
Ramp-Up And Margin Improvement Ahead
Scaringe told CNBC on Friday that Rivian is still in the early stages of ramping production, particularly for its R2 model, which will weigh on near-term results.
He noted that as production scales throughout the year, higher volumes will improve fixed-cost absorption and strengthen gross margins across its R1 lineup, R2 vehicles, and commercial vans.
He added that the back half of the year should better reflect the company’s underlying economic potential.
Production Expansion And Strategic Investments
Scaringe highlighted the importance of Rivian’s Georgia manufacturing facility, supported by a finalized government loan agreement, as a key step in scaling production.
He said the company increased planned capacity for the plant’s first phase to 300,000 units and expects to begin production there in late 2028.
He added that Rivian aims to reach more than 500,000 units of combined capacity across its Illinois and Georgia facilities, while maintaining its current delivery guidance despite recent operational disruptions.
Demand Trends And Market Positioning
Scaringe said early interest in the R2 remains strong, with the vehicle attracting both existing EV buyers and new customers drawn by its pricing, performance, and design.
He noted that more customers are trading in internal combustion vehicles, particularly less efficient ones, indicating growing awareness of fuel costs and efficiency.
He added that Rivian has not yet seen any meaningful impact from broader macro uncertainties on demand. He emphasized that the R2’s pricing places it in the core segment of the U.S. auto market, positioning it for broader adoption.
Rivian Technical Analysis
Rivian is sitting in the middle of its 52-week range ($11.57 to $22.69), suggesting the market is still debating direction after last year’s swings. The stock is trading 1.3% below its 20-day simple moving average (SMA) and 3.7% below its 100-day SMA, a mix that leans to short-term hesitation and a softer intermediate trend even as it holds some longer-term structure.
The moving-average backdrop is still supportive in spots, with the stock 4.7% above its 200-day SMA, which is often seen as a sign the longer-term base is still intact. But the moving average convergence divergence (MACD), a trend/momentum measure, shows the MACD line below the signal line, and the histogram is negative, suggesting upside momentum is currently easing rather than building.
Over the past 12 months, the stock has been up 19.19%, showing the longer-term tape has improved despite choppy stretches. Key turning points, such as the 52-week high in December 2025 and the break below support in February, help explain why $18.00 has become a tougher ceiling for rallies.
- Key Resistance: $18.00 — a level where prior rallies have stalled, and sellers have shown up.
- Key Support: $14.00 — an area where buyers have tended to defend pullbacks.
Analyst Consensus & Recent Actions
The stock carries a Buy rating with an average price target of $19.93 (high: $25.00, low: $12.00) across 28 analysts. Recent analyst moves include:
- Benchmark: Buy (Maintains Target to $25.00) (May 1)
- Needham: Buy (Maintains Target to $23.00) (May 1)
- Tigress Financial: Buy (Maintains Target to $25.00) (April 10)
Rivian Price Action
RIVN Stock Price Activity: Rivian Automotive shares were down 2.13% at $16.05 during premarket trading on Friday, according to Benzinga Pro data.
Photo by Michael Vi via Shutterstock
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