Rivian is benefiting from the growth of robotaxis. One analyst expects the stock to rise 26%.

Electric vehicle manufacturer Rivian could become one of the key beneficiaries of the ride-hailing market’s growth, according to investment firm Piper Sandler. Its analysts are advising investors to buy the company’s shares now, as they have fallen 15% this year. According to Piper Sandler’s estimates, the stock has the potential to rise by about a quarter.

On July 27, Piper Sandler upgraded its rating on Rivian shares from “Neutral” to “Overweight,” which corresponds to a “buy” recommendation. Analysts also raised their price target for Rivian shares from $18 to $20. The new target implies upside potential of approximately 26% relative to the stock’s closing price in the most recent trading session.

Three key factors contributed to the rating upgrade, according to Piper Sandler analyst Alexander Potter, as quoted by CNBC. He noted that Rivian recently raised its delivery forecast due to high gas prices and renewed consumer interest in electric vehicles. In addition, the company appears to have avoided major issues with the launch of its new R2 SUV, which is considered a key product for future growth. Another positive factor was the $1.5 billion capital raise in July, which will provide funding for business development while minimizing the risk of diluting existing shareholders’ stakes.

The analyst noted that Rivian develops its own electronic control units and circuit boards—two critically important components of an electric vehicle. In his view, this strengthens the company’s position in the development of autonomous vehicles. In addition, as production grows, Rivian will be able to increase its revenue from software and services. In late December 2025, the automaker unveiled its own AI chip for robotaxis.

In a future where robotaxis and humanoid robots become widespread, vertical integration—which brings together the various stages of development within a single company—will be a key competitive advantage, according to Potter. This will enable the company to become one of the key players in the market and secure a strong position in the development of autonomous vehicles, concludes the Piper Sandler analyst.

Following Piper Sandler’s rating upgrade, Rivian’s stock rose 6% during trading on July 27. However, the electric vehicle manufacturer’s stock price has fallen 15% year-to-date. The average price target is $18.50, implying 17% upside potential relative to the latest closing price.

Of the 28 analysts covering Rivian, 14 recommend buying the company’s stock, 10 advise holding it, and five recommend selling or rate it below the market, according to LSEG data cited by CNBC.

This article was AI-translated and verified by a human editor