Shares of Rivian (RIVN) are up today after the firm announced that it is opening up orders for its commercial vans to all customers beyond its initial launch partners, which has the potential to create a lucrative business for the electric vehicle (EV) maker. Interestingly, the commercial vans are built on the same platform as the electric delivery van Rivian produces for Amazon (AMZN) and come in two sizes, the 500 and 700, which will be priced starting at $79,900 and $83,900, respectively.
Maximize Your Portfolio with Data Driven Insights:
- Leverage the power of TipRanks' Smart Score, a data-driven tool to help you uncover top performing stocks and make informed investment decisions.
- Monitor your stock picks and compare them to top Wall Street Analysts' recommendations with Your Smart Portfolio
Analysts view this move as a positive step for Rivian as it expands its opportunities in the commercial EV market. In fact, the commercial van market is expected to grow significantly, with the global market projected to reach $210.3 billion by 2034, up from $109.4 billion in 2024. More specifically, the electrified commercial van segment is estimated to make up around $50 billion of that market. It is also worth noting that the company has already tested its vans with large fleet operators, such as AT&T (T), and the fact that they are opening up to all customers suggests that these tests were a success.
As a result, Rivian, along with other companies like Ford (F), is well-positioned to capitalize on this growth, particularly in the last-mile delivery market. This is because Ford CEO Jim Farley believes that EVs are best suited for customers who drive mostly short distances, such as around town, rather than long road trips. He thinks the EV industry will end up focusing more on serving these customers, as EVs are often cheaper to operate than traditional gas-powered vehicles for this type of driving.
Is RIVN Stock a Buy or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on RIVN stock based on three Buys, nine Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 21% decrease in its share price over the past year, the average RIVN price target of $13.65 per share implies 5.4% upside potential.
