UBS upgrades Rivian to Buy on R2 demand and margin prospects

Why it matters

The announcement gives Rivian a more bullish stance from UBS after its recent selloff and puts the R2 production ramp at the center of the investment case. UBS expects R2 demand and the software and services business to support improving profitability, while Rivian's raised delivery outlook sets a higher operating benchmark.

Key facts

• 1UBS upgraded Rivian from Neutral to Buy on November 2 and maintained its $17 price target. eletric-vehicles.com
• 2Rivian's Q3 2026 revenue increased 38.3% year over year to $2.155 billion, while its adjusted loss was $0.48 per share. 247wallst.com
• 3Rivian's Q3 deliveries rose 46% year over year to 19,248 vehicles. eletric-vehicles.com
• 4Rivian raised its 2026 delivery outlook to 67,000 to 70,000 vehicles and narrowed its adjusted EBITDA loss forecast to $1.75 billion to $1.85 billion. eletric-vehicles.com
• 5Rivian's automotive segment reported a gross loss of $80 million and a margin of minus 5%, while software and services generated $256 million of gross profit at a 42% margin. eletric-vehicles.com
• 6UBS said Rivian should show a positive automotive gross-margin figure in 1Q27, based on management's expectation of exiting 2026 with a positive automotive gross-margin rate. eletric-vehicles.com

Open questions

• The materials describe UBS's previous Rivian rating inconsistently as Neutral and Hold.
• The materials differ on whether positive automotive gross margins are expected by the end of 2026 or in 1Q27; the UBS account distinguishes management's year-end exit-rate expectation from a positive full-quarter result in 1Q27.