Towards the end of 2025, I consistently argued that Rivian Automotive (RIVN 8.11%) stock was undervalued. In fact, I called the company my best investment idea for 2026. Shortly afterwards, the stock spiked nearly 80% in value, zooming from $12.50 per share to $22.50 per share.
Since those highs, however, shares have slumped back toward their pre-spike price levels -- and off some 33% from their December highs. With shares now priced below $15, there are two reasons why investors should consider picking up more Rivian stock now.
1. Expect major sales growth in 2026
Much of Rivian's price spike late last year related to the company's newfound position as an artificial intelligence (AI) stock. The company announced in December that it would be staging an aggressive push into self-driving technology.
The company outlined a roadmap to achieving full autonomous driving in all its vehicles, a feat supported by the pending manufacture of in-house silicon chips and a next-gen computer. Both of those initiatives are expected to arrive in 2026.
Image source: Getty Images.
Artificial intelligence and self-driving initiatives are huge potential growth drivers. But there's a more near-term growth driver I am keeping my eye on: the imminent launch of Rivian's newest model, the R2.
Priced at just $45,000, the R2 finally adds a budget-friendly option to Rivian's lineup. Right now, Rivian only has two models available to purchase -- the R1T and R1S -- both of which can easily cost $100,000 or more depending on options and fees. With most Americans looking to spend less than $50,000 on their next vehicle purchase, Rivian will soon be able to tap into tens of millions of new potential buyers.
Rivian's sales are expected to jump to 27% in 2026 versus a 2025 growth rate of just 8%.
NASDAQ: RIVN
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2. Profits could surprise the market this year
Rivian stock continues to trade at a huge discount to peers like Tesla. There are many legitimate reasons for the sizable valuation discount. One of them, however, may be resolved in either 2026 or 2027. When Rivian CEO RJ Scaringe accepted his compensation deal last year, sizable bonuses were tied to Rivian achieving profitability. Without a mass market model in its lineup, Rivian has thus far been able to achieve the scale necessary to turn a net profit. That could all begin to change this year once R2 sales begin to pick up.
Rivian still looks like a promising long-term buy. Its paltry $18 billion market value would clearly be a steal should the company scale its R2 sales and AI ambitions this year. Two more budget options -- the R3 and R3X -- should also arrive by the end of next year. Following the latest price slump, I'm still very optimistic about Rivian's long-term future, with many catalysts arriving in 2026.
