Jefferies Upgrades Rivian to Buy, Citing Strong Q3 Results and Compelling Entry Point

Rivian’s latest earnings have created a favorable buying opportunity for investors following the electric vehicle maker’s recent stock correction, according to Jefferies. Building on a solid third quarter, Jefferies upgraded Rivian to “buy” from “hold” on Friday while maintaining a $17 price target, which implies roughly 48% upside from Thursday’s close of $11.45. The shares climbed more than 5% early Friday to top $12, rebounding from a 32% decline over the previous three months—a drop that Jefferies described as establishing a fresh entry point.

Rivian released its third-quarter results late Thursday, reporting a loss of 48 cents per share, which beat Wall Street’s consensus estimate of a 64-cent loss. Revenue reached $2.16 billion, surpassing the $2.0 billion forecast, according to FactSet. Jefferies analyst Philippe Houchois highlighted progress in automotive gross margins turning positive, with gross profit totaling $176 million and the overall gross margin expanding to 8%.

The firm also pointed to stabilizing U.S. EV demand and strong demand for Rivian’s R2 mid-size SUV. Management anticipates higher-than-expected order conversions for the high-end trim, and the R2 was the company’s top-selling vehicle by volume during the quarter. Rivian subsequently raised its full-year delivery outlook to between 67,000 and 70,000 vehicles, up from the prior range of 65,000 to 70,000. Year-to-date through Thursday, Rivian’s stock had fallen approximately 42% in 2026.

Looking ahead, Jefferies said the planned 2027 commercial rollout of Point-to-Point autonomy—an advanced driver-assistance feature—positions Rivian at the forefront of autonomous driving and opens potential opportunities to license self-driving technology. The firm also cited Volkswagen’s upcoming ID.1 launch, which will use Rivian software, as validation of large-scale software-defined vehicle applications and a possible catalyst for additional software-licensing agreements.

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