Rivian's R2 Launch Supports Path to Positive Vehicle Gross Profit, UBS Says

12:19 PM EST, 11/02/2026 (MT Newswires) -- Rivian Automotive (RIVN) is approaching a key profitability milestone as production of its R2 sport utility vehicle ramps up, UBS Securities said Monday in a report. Strong early demand for the R2 is expected to drive a positive inflection in automotive gross margins, with vehicle gross profit potentially turning positive in Q1 2027, the report said. Rivian's Autonomy+ service could become a meaningful driver of future growth and profitability as the company expands its software and services business, UBS said. While Rivian is expected to remain a volatile stock, UBS said the company's available and targeted capital has reduced funding risk and should eliminate the need to raise additional capital before 2029. UBS upgraded Rivian to buy from neutral and maintained its $17 price target on the stock. Price: 13.44, Change: +1.28, Percent Change: +10.49