Rivian aims to showcase its AI capabilities at its “Autonomy and AI Day” to boost investor confidence. The EV maker has faced challenges post-IPO, with shares down over 80% and billions in annual losses. CEO Scaringe emphasizes a tech-focused approach to differentiate Rivian in the competitive EV market.
Following Tesla’s lead, Rivian and Lucid are venturing into autonomous vehicles with partnerships and software advancements. However, Wall Street remains skeptical, with Morgan Stanley downgrading Rivian, Lucid, and Tesla due to concerns over industry hype and capital intensity.
Rivian’s AI Day is expected to highlight new vehicle computing power, autonomous platforms, and data initiatives to catch up to industry leaders. Analysts anticipate updates on advanced driver assistance systems and the potential for hands-free driving capabilities in the future, positioning Rivian as a serious contender in the AV space. RBC analyst Tom Narayan believes Rivian’s in-sourcing goal could turn autonomy into a profit center. Rivian vehicles currently lack lidar but have radar, cameras, and sensors. SAE International categorizes vehicle automation from level 0 to level 5, with level 5 being fully autonomous. Most U.S. vehicles are at level 2 autonomy or below.
Many companies are upgrading ADAS systems beyond level 2. General Motors faced slow adoption of hands-free driving technologies. Tesla reported only 12% of customers paid for its top-end FSD system. Despite Rivian’s lower sales and guidance revisions, shares are up 30% this year due to operational profit gains and investor optimism.
Wall Street analysts believe much of Rivian’s stock price upside potential is already priced in. Rivian’s new technologies and upcoming R2 vehicle launch are driving bullish sentiment. Shares closed at $17.71, up 0.1% ahead of an AI event, but far below the IPO price of $78 per share.
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2. The Federal Reserve indicated that it may start reducing its monthly bond purchases later this year, signaling a potential shift in monetary policy. The Fed also projected two interest rate hikes in 2023 as the economy continues to recover from the pandemic.
3. The S&P 500 and Nasdaq closed at record highs as investors cheered the Fed’s dovish stance on interest rates. Tech stocks led the gains, with Apple, Amazon, and Microsoft all posting strong performances. The Dow also saw gains, closing up over 500 points.: Rivian turns to AI, autonomy to woo investors as EV sales stall