Stock Market Today, Nov. 2: Rivian Rallies on UBS Upgrade and Solid R2 Demand Outlook
Rivian Automotive (NASDAQ:RIVN), an electric trucks, SUVs, and delivery vans maker, closed at $13.19, up 8.47%. UBS upgraded the stock to Buy and called the recent sell-off a buying opportunity ahead of the R2 ramp. Investors are watching early R2 demand and margin progress next.
Trading volume reached 64.3 million shares, coming in about 165% above its three-month average of 24.3 million shares. Rivian Automotive IPO'd in 2021 and has fallen 87% since going public.
How the markets moved today
The S&P 500 (SNPINDEX:^GSPC) fell 0.50% to 7,542, while the Nasdaq Composite (NASDAQINDEX:^IXIC) dropped 1.07% to 25,164. Among electric vehicle (EV) manufacturing, passenger EVs, and commercial delivery vans peers, Tesla (NASDAQ:TSLA) closed at $403.82, up 1.00%, and Ford Motor (NYSE:F) finished at $12.60, up 2.86%, as EV-capable automaker stocks moved higher on strong recent quarterly results.
What this means for investors
On Monday, Nov. 2, UBS upgraded Rivian Automotive to Buy from Neutral/Hold and kept its $17 target, saying the sell-off was overdone ahead of the company's R2 ramp. UBS also said early R2 demand looks solid and expects Rivian to exit 2026 with a positive automotive gross margin percentage. That margin path is central to the stock's rerating.
Rivian's third-quarter results showed revenue up 38% year over year to $2.2 billion, with gross profit of $176 million, an increase of $152 million over the prior year. The company's budget R2 vehicle became its best selling auto by volume in Q3, demonstrating consumer demand for the all-electric midsize SUV is strong. The report gave the stock a fresh fundamental backdrop before the UBS call.
Rivian also said its Volkswagen joint venture received a $1 billion term loan in October. That financing adds liquidity context as the company works through its R2 launch.
So far, Rivian looks like it's on a growth trajectory despite a volatile macroeconomic environment of rising interest rates, thanks to its R2 release. This is quite an achievement, especially after federal EV subsidies were ended in 2025. The UBS upgrade further validates Rivian's strategic bet on R2 is a win.
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Robert Izquierdo has positions in Ford Motor Company, Rivian Automotive, and Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.
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