Here's Why Rivian (RIVN) Stock Is a Buy Before March 12

By Leo Sun – Mar 6, 2026 at 12:00PM ESTKey PointsRivian’s R2 will reach a much broader market than its previous vehicles.Its stock looks undervalued relative to its long-term growth potential.Rivian (RIVN +1.58%), the high-end EV maker that went public in late 2021, currently sells three vehicles: the R1T pickup, the R1S SUV, and electric delivery vans (EDVs) for Amazon (AMZN 1.65%) and other companies. But on March 12, Rivian will finally reveal its next vehicle, the R2 SUV, during the SXSW 2026 Festival in Austin, Texas. Let's see why the R2 is so important to Rivian's future -- and why it could be smart to buy its stock before the big event. What does the R2's launch mean for Rivian? Rivian has struggled to ramp up its production since its public debut. It doubled its production from 24,337 vehicles in 2022 to 57,232 vehicles in 2023, but that figure dropped to 49,476 in 2024 and to 42,284 in 2025. It also remains deeply unprofitable. Image source: Rivian. Rivian blamed those declines on supply chain constraints, lower EV subsidies, higher interest rates, and intense competition in the premium EV market. To reach a broader market, it plans to launch the R2 at about $45,000 -- roughly $30,000-$40,000 less than the R1T and R1S. The R2's lower price tag also won't crush its gross margins, since it's much cheaper to build than the R1T and R1S -- thanks to fewer electronic control units (ECUs) and overall parts, an improved battery pack design, simpler wiring, and larger castings. That streamlined design will make the R2 easier to scale than its other vehicles. To support that expansion, it plans to open its Georgia plant (to share the load from its main Illinois plant) and triple its total production capacity by 2028. If Rivian successfully ramps up production and sales of the R2, it could boost brand awareness and lay a firmer foundation for its higher-end R3 SUVs -- which should arrive in late 2026 or early 2027. Why should you buy Rivian's stock today? At $15 per share, Rivian's stock trades more than 80% below its IPO price and is valued at less than three times this year's sales. But if it successfully expands its addressable market with R2 and launches additional vehicles, analysts expect its revenue to more than triple from $5.4 billion in 2025 to $16.3 billion by 2028. They also expect its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to turn positive by the final year. In other words, Rivian's R2 launch could be comparable to Tesla's (TSLA 1.25%) initial introduction of its more affordable Model 3 ten years ago. Considering that Tesla's stock rallied more than 2,800% over the past decade, it might be smart to nibble on Rivian's unloved stock before it attracts a lot more attention.Read NextMar 5, 2026 •By Ryan VanzoPrediction Markets Let You Bet on Anything, but This AI Stock Is the Surest Bet I've SeenMar 2, 2026 •By Ryan VanzoRivian Is the Ultimate Growth Stock to Buy Right Now -- Here's WhyFeb 27, 2026 •By Ryan VanzoRivian Stock Is Outrageously Cheap, but Does That Make It a Buy Now?Feb 21, 2026 •By Howard SmithWhy Rivian Stock Sank This WeekFeb 19, 2026 •By Chris NeigerCan Rivian Stock Beat the Market in 2026?​Feb 17, 2026 •By Daniel SparksDown 15% Already This Year, Is Rivian Stock a Buy?About the AuthorLeo Sun is a contributing Motley Fool stock market analyst who has worked with the company since 2013, covering technology, consumer goods, industrial, and financial sectors. He became a self-made millionaire by age 40 through long-term investing, crediting lessons from Warren Buffett and Peter Lynch. Leo is a regular guest on CNBC Asia providing stock analysis on Chinese technology companies, including Tencent, Baidu, and Alibaba. He previously wrote for InvestorGuide and holds a bachelor’s degree in English from the University of Texas at Austin.TMFSunLionX@TMFSunLionStocks MentionedRivian AutomotiveNASDAQ: RIVN$15.41(+1.45%)+$0.22AmazonNASDAQ: AMZN$215.27(-1.68%)-$3.67TeslaNASDAQ: TSLA$401.15(-1.08%)-$4.40*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.