Rivian Automotive hosted its first Autonomy & AI Day, focusing on stronger autonomy and AI for upcoming EV models. With competition rising and demand slowing, the company aims to boost performance and reduce costs through in-house technology. RIVN shares have risen 24% YTD but trade well below IPO price.

Rivian announced a new in-house silicon chip, the Rivian Autonomy Processor (RAP1), for heavy AI workloads. It introduced an AI-powered voice interface and plans for LiDAR integration for Level 4 self-driving capabilities. Rivian also unveiled an Autonomy+ subscription priced at $2,500 upfront or $49.99 per month, competing with Tesla.

Upcoming catalysts for Rivian include the affordable R2 model launch next year and a partnership with Volkswagen. The R2 model, priced around $45,000, targets budget-conscious consumers. Volkswagen has invested $3.3 billion in Rivian and expects to invest up to $5.8 billion by 2027 for joint development.

Rivian’s cash burn, high capex forecast, and trimmed delivery guidance pose challenges. The company’s 2025 delivery estimate has been lowered to 41,500-43,500 units, impacting financials. While revenue and bottom line estimates show improvement, Rivian’s outlook remains cautious. Investors should wait for clearer signs of progress before considering RIVN stock.

Read more at Nasdaq: Rivian Post Autonomy & AI Day: Is the Stock Worth Buying Now?