Is RIVN a good stock to buy? We came across a bullish thesis on Rivian Automotive, Inc. on LongYield’s Substack. In this article, we will summarize the bulls’ thesis on RIVN. Rivian Automotive, Inc.’s share was trading at $16.95 as of June 1st.
Rivian Automotive, Inc., together with its subsidiaries, develops, manufactures, and sells category-defining electric vehicles. RIVN is emerging from a pivotal period with what appears to be its strongest operating position since going public.
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The company delivered its largest quarterly EPS beat to date in Q1 2026, reporting a loss of $0.33 per share versus expectations of $0.60, while also growing deliveries 20% year-over-year, receiving a $1 billion investment from Volkswagen, securing a 50,000-vehicle autonomous mobility agreement with Uber, beginning saleable R2 production, and restructuring its Department of Energy loan facility.
While the market largely overlooked these developments, the bullish thesis centers on the belief that Rivian’s business is approaching a major inflection point. The company increasingly resembles two businesses under one roof: a vehicle manufacturing operation that is steadily improving economics and a rapidly growing software and services segment that generated $181 million in gross profit during the quarter, helping offset automotive losses.
The core driver of long-term value is the R2, Rivian’s lower-cost, mass-market SUV designed to compete directly with the Tesla Model Y while benefiting from substantially lower production costs, shared platform economics with Volkswagen, and significantly higher manufacturing efficiency. Management expects the R2 to achieve positive gross margins within a few quarters of reaching meaningful production volumes. Beyond vehicle sales, Rivian is positioning itself as a future autonomous mobility platform.
The Uber partnership creates a pathway for recurring software revenue tied to autonomous miles driven, potentially transforming Rivian from a traditional automaker into a software-enabled transportation platform. Supported by strategic capital partners, expanding manufacturing capacity, and improving financial flexibility, Rivian’s successful execution of the R2 launch could unlock substantial upside as production scales, software profits expand, and the market begins valuing the company beyond its current vehicle manufacturing business.
Previously, we covered a bullish thesis on Rivian Automotive, Inc. (RIVN) by LegitosaurusRex in November 2024, which highlighted the company’s R2 and R3 vehicle pipeline, Volkswagen partnership, strong liquidity position, and opportunity to gain share in the mass-market EV market. RIVN’s stock price has appreciated by approximately 68.65% since our coverage. LongYield shares a similar view but emphasizes on Rivian’s improving operating performance, software monetization, autonomous mobility platform, and R2-driven profitability inflection.
Rivian Automotive, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held RIVN at the end of the first quarter which was 45 in the previous quarter. While we acknowledge the risk and potential of RIVN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RIVN and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
