Rivian’s R2 Hopes Spark Optimism as Trading Volume Dips 25% to Rank 156th in Activity

On August 27, 2025, Rivian Automotive (RIVN) traded at a 0.08% gain, with a trading volume of $0.52 billion, marking a 25.09% decline from the previous day’s volume. The stock ranked 156th in trading activity among listed equities.

Analyst activity highlighted renewed optimism for Rivian’s mid-size R2 SUV, with Needham reaffirming a Buy rating and a $14.00 price target. The R2, priced around $50,000, is positioned to expand the automaker’s addressable market beyond its premium R1 lineup. Strategic partnerships, including a $5.8 billion joint venture with Volkswagen, and plant upgrades in Illinois are expected to enhance production efficiency and capacity. Rivian’s cash reserves, totaling $7.5 billion, and a $1 billion funding infusion from Volkswagen in June 2025 provide financial stability amid ongoing losses.

Challenges persist, however. Second-quarter deliveries fell 22.7% year-over-year to 10,661 units, attributed to softening consumer demand, economic uncertainties, and rising manufacturing costs from tariffs. The company’s adjusted EBITDA loss of $329 million in the latest quarter underscores ongoing profitability hurdles. While Rivian has reported consecutive quarters of positive gross profit, its per-vehicle losses remain significant, and near-term growth faces headwinds from tariff pressures and delayed R2 production until 2026.

Investor sentiment remains cautious, with a consensus Hold rating from 26 analysts and an average price target of $13.94. The stock’s 89% decline from its 2021 IPO high reflects broader EV market volatility. Institutional ownership stands at 43.6%, with Amazon holding over 158 million shares. Analysts note that Rivian’s long-term potential hinges on successful execution of its R2 launch and cost-cutting initiatives, but near-term execution risks and market conditions warrant caution.

Estimate price targets range from $7.55 to $21.00, with a median of $13.94. A 12-month bearish forecast from 24/7 Wall St. predicts a price of $11.88, reflecting projected revenue growth from $4.8 billion in 2025 to $9.6 billion by 2030. However, near-term weakness, including sales pulled forward into Q1 and delayed R2 availability, is expected to limit gains until 2026.