Rivian's Struggling Stock Ranks 168th in S&P 500 Amid R2 Launch and Valuation Debate

Rivian Automotive (RIVN) fell 0.51% on Aug. 29, with a trading volume of $530 million, ranking 168th in the S&P 500. The stock remains under pressure amid ongoing production challenges and uncertain demand for its upcoming R2 model, despite strategic partnerships and cost-cutting initiatives.

Recent analyst focus has centered on Rivian’s R2 platform, which is expected to reduce per-unit costs by nearly 50% through supplier contracts and component optimization. This shift could improve gross margins and accelerate the path to profitability, though high cash burn and regulatory risks continue to weigh on long-term projections. The company’s collaboration with Volkswagen and Amazon remains a key narrative driver, with market participants debating whether current valuations reflect realistic growth scenarios or overhyped expectations.

Community consensus suggests Rivian is moderately undervalued at $13.94 per share, based on assumptions of rapid revenue expansion and margin improvements. However, a discounted cash flow model indicates the stock may be overpriced relative to its intrinsic value, highlighting a divergence between bullish forecasts and more conservative financial metrics. The valuation debate underscores the market’s mixed sentiment toward the EV maker’s ability to scale operations while maintaining profitability.

Simply Wall St’s fair value calculation confirms the stock is currently undervalued, but cautions that unmet production targets or regulatory changes could disrupt its growth trajectory. Investors remain split between optimism around the R2 launch and skepticism about Rivian’s ability to sustain momentum in a competitive EV landscape.