Rivian Post Autonomy & AI Day: Is the Stock Worth Buying Now?

Core Insights - Rivian Automotive hosted its first Autonomy & AI Day, emphasizing stronger autonomy, improved AI, and a more capable tech platform for future models [1] - The company is facing a slowdown in U.S. EV demand and increased price competition from Chinese automakers [2] - Rivian's stock has risen 24% year-to-date but remains 79% below its IPO price [2] Technology Developments - Rivian introduced its in-house silicon chip, the Rivian Autonomy Processor (RAP1), designed for heavy AI and vision workloads, delivering 205 gigabytes per second bandwidth [4] - The new hardware will support an AI-powered "Rivian Assistant" and near-term software updates for hands-free driving on over 3.5 million miles of North American roads [5] - Integration of LiDAR into future models aims for Level 4 self-driving capabilities, positioning Rivian closer to competitors like Waymo [6] Product and Market Strategy - Rivian plans to launch the affordable R2 model in the first half of 2026, targeting a starting price of around $45,000 [10] - A partnership with Volkswagen involves an investment of up to $5.8 billion by 2027, focusing on developing next-generation electrical architecture and software [11] Financial Overview - Rivian's cash balance decreased to $7.1 billion at the end of Q3 2025, with a high capex forecast of $1.8–$1.9 billion [12] - The company has lowered its 2025 delivery guidance to 41,500-43,500 units, down from previous estimates [13] - Zacks Consensus Estimate projects revenue growth of 8% in 2025 and 36% in 2026, with adjusted EBITDA loss estimates for 2025 narrowing slightly [14][15]