Rivian Automotive Inc. (RIVN) shares took a breather Tuesday afternoon, dropping 6.34% to $19.36 as investors locked in gains from a December rally that pushed the electric-vehicle maker to 52-week highs. But here's the thing: even with Tuesday's slide, the stock is still up 14% over the past month and nearly 48% year-to-date. Not exactly a disaster.
What's Behind the Momentum
The recent surge traces back to Rivian's Autonomy & AI Day on December 11, where the company showed it's serious about competing in the self-driving space. The headline announcement? A custom Rivian Autonomy Processor chip paired with a Gen-3 autonomy computer capable of processing five billion pixels per second. That's the kind of number that gets investors excited.
More importantly, Rivian laid out a roadmap targeting Level 4 autonomous capability with LiDAR-equipped R2 models expected from late 2026. Level 4 means the car can handle itself in most situations without human intervention, which is a big deal if they pull it off.
The Tesla Pricing Challenge
Rivian also unveiled its Autonomy+ driver-assist subscription, and this is where things get interesting. The pricing: $2,500 upfront or $49.99 per month. That significantly undercuts Tesla's Full Self-Driving package and creates a potentially lucrative software revenue stream. Launch is planned for early 2026, giving Rivian time to build out the technology.
Wall Street's Take
Analysts noticed. Following AI Day, firms including Wedbush, Baird, Goldman Sachs and Needham raised their price targets into the mid-$20s. That vote of confidence came even as shares pulled back in mid-December amid profit-taking, which appears to be continuing into Tuesday's session.
The Bigger Picture
Rivian's 2024 has been what you might call eventful. The company delivered 13,702 R1 vehicles in the third quarter, a solid showing. But it's also navigating tariff-related cost concerns and pouring money into a new Georgia plant to support its R2 crossover. Add in a performance-based CEO pay package worth up to $4.6 billion over 10 years, and you've got a company placing big bets on its future.
Tuesday's pullback reflects that tension between ambitious autonomy plans and the capital spending required to make them reality. The stock's Momentum score of 90.21 suggests bullish sentiment remains intact across short-, medium- and long-term indicators, even as some investors take profits off the table.
For now, the technical picture shows support around $19.28. If that level holds, it could offer a buying opportunity for investors who believe in Rivian's autonomous driving vision and its ability to execute on those late-2026 promises.