How Investors May Respond To Rivian Automotive (RIVN) Pivoting To In‑House Autonomy Chips And Subscriptions

• Rivian recently held its first Autonomy & AI Day, unveiling its custom 5nm Rivian Autonomy Processor (RAP1), third-generation Autonomy Compute Module (ACM3), LiDAR-enabled Gen 3 hardware for future R2 models, an AI-driven Large Driving Model, and an Autonomy+ subscription service launching in early 2026.
• By shifting to in-house silicon and an AI-first software stack, Rivian is trying to turn autonomy and connected services into a long-term, higher-margin revenue engine rather than relying solely on vehicle sales.
• We’ll now examine how Rivian’s move into custom autonomy chips and the Autonomy+ subscription could reshape its broader investment narrative.

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Rivian Automotive Investment Narrative Recap

To own Rivian today, you generally have to believe it can turn rapid revenue growth and heavy investment in R2 and software into a viable, eventually self-funding business. The Autonomy & AI Day strengthens the long-term vertical integration story, but it does not change the main near term catalyst, which is scaling R2 at a lower cost base, nor the biggest risk, which is ongoing high cash burn that may require further capital raises and dilution.

Among the announcements, the Autonomy+ subscription, priced at US$2,500 upfront or US$49.99 a month from early 2026, is most relevant for investors. If Rivian can get meaningful adoption, this type of software and services revenue could support the existing catalyst that higher margin, recurring income helps offset hardware cyclicality and a concentrated vehicle lineup, especially as R2 volumes build.

But while Autonomy+ hints at richer future margins, investors should also be aware that ongoing high cash burn and potential dilution could still...

Read the full narrative on Rivian Automotive (it's free!)

Rivian Automotive's narrative projects $15.7 billion revenue and $788.9 million earnings by 2028.

Uncover how Rivian Automotive's forecasts yield a $14.83 fair value, a 19% downside to its current price.

Exploring Other Perspectives

Twenty Simply Wall St Community members currently see Rivian’s fair value anywhere between about US$3.20 and US$25.41, reflecting very different expectations. Against that wide spread, Rivian’s push into in-house autonomy chips and subscriptions underlines how much its long term performance may hinge on successfully turning technology vertical integration into real earnings progress.

Explore 20 other fair value estimates on Rivian Automotive - why the stock might be worth as much as 38% more than the current price!

Build Your Own Rivian Automotive Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Rivian Automotive research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.
• Our free Rivian Automotive research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Rivian Automotive's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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