2 Reasons Why Rivian Stock Is a Buy Before Earnings

Analysts expect Rivian (NASDAQ: RIVN) to report its next earnings in early May. That earnings announcement will offer financial results for the first quarter of 2026. There should be plenty of critical updates delivered to investors.

There are two catalysts in particular that could be revealed that day. Both catalysts hold the potential to send Rivian's stock price soaring.

1. Updates on Rivian's new affordable SUV

The very first revelation that investors should be looking for in Rivian's next earnings report is an update on the company's newest vehicle launch. The R2 SUV is Rivian's first vehicle with a base price starting under $50,000. Previously, the company only had two models on the market, both luxury trucks offered at a price too high for most consumers to afford. The R2 marks the company's first real vehicle for the "mass market," theoretically making Rivian's products accessible to tens of millions of new buyers.

Image source: Rivian.

The R2 was in development for years. But deliveries are expected to begin in April, starting with a higher trim variant for select customers. So don't expect total deliveries to be very high by May. But what investors should be paying attention to is whether initial deliveries started on time, whether the backend manufacturing capacity is scaling as expected, and how the latest reservation numbers have grown or shrunk.

Delays in initial shipments and unforeseen issues in scaling up production have proven common in the EV industry. But Rivian is my top growth stock in 2026 for a reason. If deliveries, production scaling, and reservations look to be on track, expect the market to reward the company's relatively paltry valuation of just 3.3 times sales.

2. Rivian could reveal more AI updates

Bona fide artificial intelligence (AI) stocks in today's market rarely trade at just 3.3 times sales. But the market doesn't yet see Rivian as a fully fledged AI stock. Instead, it's mostly still valued as an auto manufacturing business. They typically garner a much lower valuation premium than AI stocks.

Fortunately, we can see what happens when the market starts to buy into Rivian's AI story. It's a story that, while long-term in nature, should see the company invest heavily in AI to fuel its autonomous driving ambitions, similar to the strategy that other EV stocks like Tesla are taking.

Rivian's first "AI Day" was held in mid-December. From early November through late December, shares rose sharply in value (up nearly 80%). While much of that initial enthusiasm has waned, it's clear that the market values Rivian's AI potential when updates are front and center. If Rivian provides any tangible and positive updates on its AI investments next quarter, expect the market to reward those efforts.

Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.