<div id="readability-page-1"><div> <h2>Key Points</h2><ul><li>Enthusiasm for software revenue could eventually command higher valuation multiples.</li><li>Volkswagen’s partnership strengthens Rivian’s long-term software opportunity.</li><li>Rivian’s R2 launch could dramatically accelerate delivery growth.</li><li>10 stocks we like better than Rivian Automotive ›</li></ul>Rivian (NASDAQ: RIVN) doesn't need Tesla-level performance metrics to get the stock moving above $15. It only needs investors to believe the company is transitioning from a cash-burning electric-vehicle (EV) start-up into a scalable EV and software platform.Right now, Rivian stock trades at roughly an $18.5 billion market cap. Analysts currently expect the company to generate approximately $7 billion in 2026 revenue, which means Rivian trades at roughly 2.5 times projected 2026 sales.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an &#34;Indispensable Monopoly&#34; providing the critical technology Nvidia and Intel both need. Continue »That valuation is relatively low compared with other EV and software-driven automotive companies, especially considering Rivian now has a stockpile of $4.8 billion in cash, cash equivalents, and short-term investments, a Volkswagen (OTC: VWAGY) partnership worth up to $5.8 billion to develop next-generation software-defined vehicle architecture, an Uber Technologies (NYSE: UBER) robotaxi agreement potentially worth another $1.25 billion, and its mass-market R2 vehicle platform preparing to launch.<img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2OTgyNS9yaXZpYW4tcjItZWxlY3RyaWMtdmVoaWNsZS1zb3VyY2Utcml2aWFuLmpwZyZ3PTcwMA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="466" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2OTgyNS9yaXZpYW4tcjItZWxlY3RyaWMtdmVoaWNsZS1zb3VyY2Utcml2aWFuLmpwZyZ3PTcwMA"/>Image source: Rivian. If you're unfamiliar, the R2 is the company's upcoming, lower-cost midsize electric SUV platform, which is expected to dramatically expand Rivian's addressable market beyond its higher-priced R1 vehicles.<h2>But Rivian must deliver</h2>Rivian delivered 42,247 vehicles in 2025. Management now expects 62,000 to 67,000 deliveries in 2026, while Reuters reported that analysts expect more than 22,000 R2 deliveries this year.If Rivian successfully ramps up R2 production and investors eventually value the company at 4 times projected sales, which would still be below that of many high-growth EV and software peers, the market cap could approach $24 billion based on $6 billion in projected 2026 revenue. That would still imply meaningful upside from Rivian's current valuation and would probably push the electric-car stock comfortably above $15 per share.And that doesn't include any additional valuation premium tied to software revenue.<h2>Rivian is more than just a car company</h2>Rivian's software and services segment generated $473 million in Q1 2026 revenue, up 49% year over year. Software gross profit reached $181 million during the quarter.This isn't trivial, because software revenue typically receives much higher valuation multiples than vehicle manufacturing revenue. If Rivian continues to grow its software business through partnerships with Volkswagen and in autonomous driving, investors may eventually stop valuing Rivian purely as a car company. And that's not a bad thing.Of course, none of this guarantees that Rivian will succeed.The company still burned more than $1 billion in free cash flow during Q1 2026, its automotive segment still posted a gross loss, and the R2 rollout has to execute nearly flawlessly.But quantitatively, the argument is sound.If Rivian can grow deliveries toward 65,000 vehicles this year, scale software revenue, improve gross margins, and secure additional Volkswagen milestone payments, today's valuation could start looking pretty cheap.<h2>Should you buy stock in Rivian Automotive right now?</h2> Before you buy stock in Rivian Automotive, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Rivian Automotive wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $483,476!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,362,941!* Now, it’s worth noting Stock Advisor’s total average return is 998% — a market-crushing outperformance compared to 207% for the S&amp;P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 20, 2026. Jeff Siegel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Uber Technologies. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. </div></div>

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Rivian's stock, currently valued at $18.5 billion, may rise above $15 if investors believe in its transition from a cash-burning startup to a scalable EV and software platform. With a projected $7 billion revenue in 2026 and partnerships with Volkswagen and Uber, Rivian's software revenue could enhance its valuation. However, the company must successfully ramp up R2 vehicle production and improve gross margins to realize this potential.

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The Clock May Be Ticking on Rivian Stock Under $15. Is Now the Time to Buy?