NEW YORK, August 11, 2026, 14:45 EDT
- On August 10, Needham maintained its Buy rating and kept the price target at $23.
- The target suggests a 41.8% increase from Rivian’s Tuesday price of $16.22.
- Software generated $215 million in gross profit for the second quarter, while the automotive segment reported a $36 million loss.
Shares of Rivian Automotive, Inc. NASDAQ:RIVN hovered around $16.22 on Tuesday following Needham’s reaffirmation of its Buy recommendation and $23 price target. The outlook suggests potential upside of 41.8%, while the company continues to balance profitable software operations against losses in its vehicle segment.
The division provides a clearer measure for investors. Rivian posted consolidated gross profit of $179 million in the second quarter. Software and services brought in $215 million, and automotive reported a gross loss of $36 million.
Shares fell 1.0% as of 14:02 EDT, trading 28.7% under the stock’s 52-week high and still 40.1% above its lowest mark. U.S. markets stayed open.
| Market measure | August 11 reading | Comparison |
|---|---|---|
| Share price | $16.22 | Fell 1.01% during the session |
| 52-week high | $22.69 | Currently 28.7% lower than peak |
| 52-week low | $11.58 | Trades 28.6% above the low |
| Market value | $23.50 billion | Total shares outstanding: 1.44 billion |
| Average analyst target | $17.00 | Target stands 4.8% higher than present level |
Needham’s target stands apart from the consensus view. Out of 15 analysts tracked in the last three months, five rate Rivian as Buy, six recommend Hold, and four advise Sell. The average price target is just 78 cents higher than where shares closed on Tuesday.
| Analyst | Firm | Rating | Target | Implied move | Date |
|---|---|---|---|---|---|
| Chris Pierce | Needham | Buy | $23 | +41.8% | Aug. 10 |
| Edison Yu | Deutsche Bank | Buy | $24 | +47.9% | July 31 |
| Stephen Gengaro | Stifel | Buy | $22 | +35.6% | July 31 |
| Mark Delaney | Goldman Sachs | Hold | $18 | +10.9% | July 30 |
| Rajat Gupta | J.P. Morgan | Sell | $15 | -7.6% | Aug. 3 |
| Andres Sheppard | Cantor Fitzgerald | Hold | $8 | -50.7% | Aug. 3 |
Google Finance recorded these recommendations up to August 10. Analysts’ price targets for Rivian span from $8 to $24, reflecting significant disagreement over R2 performance and the worth of Rivian’s software platform.
Revenue for the second quarter increased by 27% to reach $1.658 billion. The composition shifted beyond the main figure. Software and services accounted for 31% of revenue and generated the majority of total gross profit.
| Q2 segment | 2026 revenue | 2025 revenue | 2026 gross profit | 2025 gross profit | 2026 margin |
|---|---|---|---|---|---|
| Automotive | $1.143 billion | $927 million | -$36 million | -$335 million | -3.1% |
| Software and services | $515 million | $376 million | $215 million | $129 million | 41.7% |
| Consolidated | $1.658 billion | $1.303 billion | $179 million | -$206 million | 10.8% |
Joint-venture operations with Volkswagen AG ETR:VOW3 produced $308 million—accounting for 60% of software and services revenue. This heavy concentration drove strong profitability for the segment, but overall margin remains reliant on projects outside the vehicle sector.
Rivian started external deliveries of its R2 model in the quarter. “I believe R2 will be a game changer for our customers and a driver of Rivian’s long-term growth and profitability,” founder and Chief Executive RJ Scaringe said. The company also reported a record 57,000 demo drives in the same release. Rivian Q2 release
Vehicle economics saw improvement even with launch expenses. Automotive gross loss decreased by $299 million compared to the prior year. Rivian incurred around $100 million in additional R2 ramp costs during the quarter.
| Q2 measure | 2026 | 2025 | Change |
|---|---|---|---|
| Operating loss | -$836 million | -$1.114 billion | $278 million lower loss |
| Net loss to common holders | -$837 million | -$1.115 billion | $278 million narrower loss |
| Adjusted EBITDA | -$379 million | -$667 million | $288 million higher |
| Operating cash flow | -$487 million | $64 million | $551 million decline |
| Capital spending | $362 million | $462 million | Dropped $100 million |
| Free cash flow | -$849 million | -$398 million | $451 million lower |
Profit metrics increased, yet cash usage rose. Rivian accumulated inventory ahead of the R2 release. The previous year’s quarter was lifted by deferred revenue associated with Volkswagen.
Rivian’s production rose to 12,613 vehicles, while deliveries were 12,194. These figures surpassed the first quarter, when production was 10,236 and deliveries reached 10,365. The company projects full-year deliveries of between 65,000 and 70,000.
| Operating measure | Q2 2026 | Q1 2026 | Sequential change |
|---|---|---|---|
| Vehicles built | 12,613 | 10,236 | +23.2% |
| Vehicles handed over | 12,194 | 10,365 | +17.6% |
| Total turnover | $1.658 billion | $1.381 billion | +20.1% |
| Gross earnings | $179 million | $119 million | +50.4% |
Liquidity provides flexibility but not full protection. Rivian reported cash and short-term investments of $5.310 billion at the end of June. Its share sale in July brought in roughly $1.317 billion in net proceeds, moving pro forma available liquidity up to $7.163 billion.
Risks include persistent high R2 costs, a strong reliance on Volkswagen projects for software revenue, and continued cash outflows at Rivian. The company anticipates increased costs for raw materials, memory, and logistics.
The next key indicator is automotive gross margin. If it turns positive, the $215 million software profit would contribute to overall group earnings rather than offsetting vehicle losses.
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