Benchmark maintains Buy rating on Rivian's stock

Rivian's long-term outlook is positive, according to analysts at Benchmark. They have kept a Buy rating on Rivian shares and set a price target of $18. The analysts believe Rivian will grow due to its access to capital, the upcoming R2 vehicle launch, and a rising software and services business. They have lowered their first-quarter delivery prediction to 8,000 vehicles, down from 10,000, reflecting Rivian's own guidance. This is attributed to seasonal factors and limited demand, influenced by issues related to fires in Los Angeles. Rivian expects to deliver between 46,000 and 51,000 vehicles this year, with a stronger growth anticipated in the second half of 2025 as excitement builds for the R2 launch in 2026. The company has strong financial backing, having secured $2.3 billion from its partnership with Volkswagen, which is part of a total funding plan of $5.8 billion for 2024. Furthermore, Rivian obtained a $6.6 billion loan in January 2025, bringing its total cash reserves to over $10 billion. Benchmark also noted Rivian's software and services division, which made $60 million in revenue last quarter with a strong profit margin. This segment is expected to generate nearly $1 billion in revenue for 2025, helping improve profits. Despite some risks, such as changes in regulations and electric vehicle incentives, Benchmark believes Rivian's government loan and manufacturing efforts in Georgia align with positive government policies. This supports their optimistic view of Rivian's long-term growth.