Rivian has strengthened its AI strategy by appointing Aidan Gomez, co-founder and CEO of generative AI startup Cohere, to its board. Gomez’s appointment was announced through a regulatory filing. The move underscores Rivian’s ambition to lead in automotive software and AI-driven autonomy.

Gomez is a data scientist and AI expert. He launched Cohere in 2019, focusing on AI foundation models for enterprises like Oracle and Notion. Gomez will be on Rivian’s board until 2026. His appointment expands Rivian’s board and aligns with the company’s $5.8 billion joint venture with Volkswagen Group to develop software. The venture leverages Rivian’s electrical architecture expertise, licensing intellectual property, and may sell tech to other firms in the future.

Gomez’s expertise is a strategic fit, with CEO RJ Scaringe stating the AI expert’s “thinking and expertise will support Rivian as we integrate new, cutting-edge technologies into our products, services, and manufacturing.”

Rivian’s AI efforts include an AI assistant for its EVs, which has been under development since 2023, according to the automaker’s Chief Software Officer Wassym Bensaid.

“The AI work, which is specifically on the orchestration layer or framework for an AI assistant, sits outside the joint venture with VW,” Bensaid told TechCrunch.

Morgan Stanley analyst Adam Jonas sees Rivian’s value in its AI and autonomy potential, not just its EVs. “We see scope for Rivian to play a more important role in AI-enabled autonomy with potential milestones in 1H25,” Jonas said, highlighting the upcoming period as “consequential to determining Rivian’s place in the autonomous vehicle race.”

Jonas believes Rivian stands out as a non-Tesla, U.S.-based “software-defined” company with a fully integrated, AI-driven autonomous platform fueled by advances in generative AI and large language models.

Gomez’s board role positions Rivian to capitalize on AI innovations, enhancing its software leadership and autonomous vehicle development. As the EV maker navigates its Volkswagen partnership and internal AI projects, Gomez’s expertise could drive breakthroughs, reinforcing Rivian’s dual identity as an EV manufacturer and a tech innovator in a competitive landscape.

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Rivian is grappling with challenges arising from President Trump’s auto tariff. Rivian CEO RJ Scaringe recently enumerated the difficulties automakers face and elaborated on the impact of Trump’s auto tariffs on the electric vehicle (EV) industry.  

President Trump’s auto tariffs were announced last month, imposing 25% tariffs on imported vehicles effective April 3, 2025, and levies on auto parts starting in May.

Scaringe talked a bit about the complexity of the automotive supply chain with Fox Business. Rivian’s R1T pickup, R1S SUV, and commercial electric van are manufactured at its Normal, Illinois plant. Scaringe boasted that Rivian has a “very U.S.-centric supply chain.

Yet, the complex global supply chain poses hurdles for U.S. automakers who want to comply with Trump’s auto tariffs.

“One of the things with automotive is the supply chain is so complex, where we have hundreds of suppliers providing parts from, say, a headlight or a tow hook or tires or the structure under the skin here that are coming from not only a set of suppliers that supply to us, but those suppliers have suppliers, and then in turn, those suppliers have suppliers, so there’s tier two, tier three,” Scaringe explained.

China’s restrictions on rare-earth material exports–in response to Trump’s 145% tariff on Chinese imports–further complicate matters. Rare-earth materials are critical for EV motor magnets and batteries. Nearly all rare-earth materials are processed exclusively in China.

“The trade restrictions and what we’re seeing in terms of rare earth metals out of China, that’s a real challenge for electric vehicles,” Scaringe noted.

Batteries comprise up to 40% of an EV’s cost. Goldman Sachs noted that battery costs have been falling in recent years. The investment bank estimated EV battery costs would drop by 50% between 2023 and 2026. However, China’s decision to restrict rare-earth materials may increase battery costs.

Wedbush analyst Dan Ives called the tariffs a source of “pure chaos” for the auto industry, stating, “A U.S. car made entirely with U.S. parts is a fictional tale.”

Ives warned automakers could increase car prices between $5,000 to $10,000. Wedbush predicts a potential change in Trump’s auto parts tariffs could ease disruptions.

For Rivian, starting prices near $70,000 limit room for cost increases without impacting sales. As trade tensions escalate, Rivian faces rising costs and potential production slowdowns, threatening its growth in a shifting EV landscape.

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The electric vehicle maker celebrated its chief executive’s accolade on social media and on its official website.

Why RJ Scaringe Won

Newsweek highlighted that Rivian is one of the few electric car makers in the market today that actually turned a profit. This was an extremely challenging endeavor for Rivian, especially as the company had to outfit its Normal, Il plant during the height of the pandemic. 

Rivian has proven to be as tough as its off-road-capable electric vehicles. It dug deep to launch the R1T and R1S, it secured a deal with Amazon for its electric delivery vans, it unveiled its next-generation vehicles like the R2, R3, and R3X, and it even signed a $5.8 billion joint venture with Volkswagen Group. This year, a subsidiary of the company also received a $6.57 billion loan from the federal government to finance the development and construction of its Georgia plant, which is expected to be capable of mass manufacturing the R2.

“Strategic decisions that resulted in a gross profit of $170 million in the fourth quarter of 2024 and the maturing business model of the Rivian brand in a BEV-adverse environment are why RJ Scaringe is Newsweek’s 2025 Executive Disruptor of the Year,” Newsweek wrote.

What the CEO Says

CEO RJ Scaringe noted that the honor really belongs to the company’s employees, who have endured numerous hardships over the years just to help Rivian mature and survive. As per the electric truck maker, its CEO’s award is a reflection of the vision, grit, and teamwork that powers everything the company does. 

“This honor truly belongs to the entire incredible team of disruptors at Rivian. Every step forward we’ve taken—whether in the design studio, on the assembly line or in our software—has been driven by people who believe deeply in our mission. I’m grateful to Newsweek for the recognition, and even more thankful to our community for continuing to inspire us every day!” Scaringe stated.

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Analysts have cut Rivian price targets (PT) amid concerns over President Trump’s tariffs.

Baird is the latest investment firm to cut its Rivian price target. Baird analysts slashed Rivian’s PT from $16 to $14 while maintaining a Neutral rating ahead of the electric vehicle (EV) maker’s Q1 2025 earnings. Baird’s downgrade reflects caution in the sustainable energy and mobility sectors through late 2025.

Rivian reported producing 14,611 vehicles and delivering 8,640 in the first quarter at its Normal, Illinois plant. The company reaffirmed its full-year delivery guidance of “46,000 to 51,000” units, holding steady despite headwinds.

Baird’s adjustment aligns with broader market uncertainties impacting Rivian’s outlook. Based on GuruFocus, the firm joins 29 analysts setting an average one-year price target of $14.54 for Rivian, with estimates ranging from a high of $23.00 to a low of $6.10.

Bernstein maintained its Underperform rating for Rivian, giving the EV automaker a $6.10 price target. The firm’s forecast suggests Rivian could drop 47% from Friday’s $11.47 close. Bernstein’s Rivian prediction cites rising tariff pressures and financial challenges, particularly with tariffs on imported batteries set to increase in May.

“We expect Rivian to discontinue its Lithium Iron Phosphate (LFP) variants, downgrade volume, and EBIT guidance, and be forced to consider raising fresh equity,” analysts led by Daniel Roeska wrote.

Bernstein slashed Rivian’s 2025 delivery forecast to 37,000 units, 20% below the automaker’s guidance midpoint. It also projects a negative $2.2 billion adjusted EBITDA for Rivian in Q1 2025. Analysts also flagged risks to Rivian’s gross profit breakeven goal, which is tied to Volkswagen’s planned $1 billion equity investment.

RBC Capital also trimmed its price target for Rivian to $10, anticipating a Q1 sales uptick from tariff-driven demand but warning that earnings may not fully capture trade impacts.

Rivian’s Q1 earnings, scheduled for May 6 after market close, will shed light on its ability to navigate tariffs and financial pressures. While the EV maker maintains its production goals, analysts signal a bumpy road ahead as costs rise and market dynamics shift. Rivian’s focus on scaling remains critical, but tariff burdens and equity needs could test its resilience in a competitive EV landscape.

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RBC Capital cut its Rivian price target to $10 ahead of the automaker’s Q1 earnings report.

RBC Capital dropped its price target for Rivian Automotive from $12 to $10 per share, sticking with a “Sector Perform” rating as it braces for the automaker’s first-quarter earnings. The firm’s new Rivian price target includes predictions for a March sales bump tied to looming tariffs, though RBC cautions that earnings may not fully reflect trade impacts.

Rivian produced 14,611 vehicles and delivered 8,640 in Q1 2025 at its Normal, Illinois plant. The company held steady on its full-year outlook,  reaffirming its 2025 delivery guidance of 46,000 to 51,000. Rivian will release its first-quarter 2025 financial results on May 6 after market close.

RBC sees guidance shifts looming across the auto sector, possibly cutting estimates despite already lean consensus targets. It favors OEMs over suppliers amid macro jitters. The firm suggests tariff-free optimists could score big by betting on the “entire automotive group.”

According to GuruFocus, the average target price for Rivian is $14.54 with a high estimate of $23.00 and a low estimate of $6.10. Based on consensus recommendations from 31 brokerage firms, Rivian has a Hold rating on average.

The shadow of tariffs looms over the auto market, yet Rivian’s output holds firm against peers like Lucid, which face similar headwinds. RBC notes, “guidance in the auto sector could experience alterations,” signaling volatility ahead. Rivian’s Q1 haul—while solid—won’t fully decode trade effects, leaving investors eyeing May’s update for clarity on its EV trajectory.

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Rivian’s skunkworks program has turned into a full-blown startup called Also. The new startup, which is separate from Rivian, raised $105 million from Eclipse Ventures. Also will focus on micromobility or the development of micro electric vehicles.

Also started within Rivian, aiming to figure out if the electric vehicle company’s technology could be condensed to fit smaller EVs, including vans, trucks, and SUVs. Eventually, the skunkworks program discovered it could, indeed, fit Rivian’s technology in smaller, more compact electric vehicles, but the project was bigger than Rivian.

“We’ve been taking the Rivian technology stack and adapting it to much smaller form factors and then coming up with some incredibly exciting embodiments of that technology in these very small form factors,” Rivian CEO RJ Scaringe told Reuters.

Rivian will always be part of Also. It holds a minority stake in Also and Rivian’s VP of future programs, Chris Yu, will be the startup’s president.

According to Scaringe, Also plans to debut its first vehicle designs later this year. One of the designs seems to be a bike, as Scringe described it having a seat, two wheels, and a screen with a few computers and a battery.

Also aims to start producing its flagship product by 2026 for customers in the United States and Europe. In addition, it plans to launch consumer and commercial vehicles made for Asia and South America.

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However, its lineup and efforts go well past that of the Rivian EDV, a vehicle that helped launch the e-commerce giant’s efforts to make its business operations more sustainable.

In fact, Amazon is using a handful of different EVs to help make its business more climate-friendly, and some of the vehicles it uses might surprise you.

We’ll break down the Amazon EV lineup and what each is used for in its day-to-day business operations, showing how the EDV is just one of many parts of a future that aims to be more sustainable.

Rivian EDV

It’s hard not to start with the Rivian EDV. Back in 2019, Amazon launched its Climate Pledge, which included an agreement to buy 100,000 vans from Rivian that would be used for deliveries.

Amazon

Amazon and Rivian designed the EDV specifically for the company to use. Other versions of what it calls the RCV are available, but they differ from the Rivian-built EDV, which is specific to Amazon.

It does not require a commercial driver’s license to operate, and many areas around the country have utilized them for deliveries.

E-Scooters

Amazon uses E-Scooters for package delivery in some regions, including India. Over 80 percent of its deliveries in the country are completed through two-wheelers that Amazon has developed with manufacturers.

Credit: Amazon

These E-Scooters have many advantages, including maneuverability in densely populated areas, cost-effectiveness, ease of parking, and faster navigation compared to larger vehicles.

Three-Wheelers

Amazon uses three-wheelers, also referred to as “goods vans” to help deliver packages as well.

These vehicles were built through collaboration with various manufacturers.

Credit: Amazon

Light and Medium-Duty Electric Trucks

These are used to transport packages between Amazon buildings or even to deliver larger packages, like refrigerators, to customers.

Eventually, there will be over 1,000 of these delivering packages or handling internal logistics in India. These vehicles are quiet and provide a better experience for drivers with a comfortable ride.

Credit: Amazon

Heavy-Duty Electric Trucks

These are used for everything from hauling large containers containing packages from ports to Amazon facilities or between Amazon buildings.

Amazon currently has a fleet of about 50 of these heavy-duty electric trucks in California, its largest fleet of this vehicle type. It plans to roll out over 200 of them in Europe in the future.

Credit: Amazon

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Rivian CEO RJ Scaringe showed some support for Tesla despite all the Elon Musk hate that has been spreading. Scaringe’s stance on all the Tesla amid the protests and vandalism starkly differs from what seems to be the popular opinion lately.

RJ Scaringe attended the South by Southwest (SXSW) event in Austin earlier this week. The Rivian CEO briefly talked about Tesla and its current predicament.

“When we look at Tesla and other manufacturers, I think it’s incredibly important that we have [a] choice. We need Tesla to be successful, we need other manufacturers to be successful,” answered Scaringe graciously.

In the past, Scaringe has talked about the electric vehicles industry’s growth and how EV automakers need to offer different designs to help it expand. He acknowledges that Tesla started the current EV revolution and once called it a “very inspirational” company. However, the Rivian CEO also encourages EV automakers to make their own mark in this rising industry.

“If you’re a consumer that’s thinking about buying a car and you want to spend less than $50,000, there are just not that many great electric options,” Scaringe noted during his SXSW appearance.

He noted that the base Tesla Model Y is less than $50,000 but also pointed out that it might be someone’s design or brand preference. In Rivian’s case, nature lovers were attracted to the company’s designs and features.

“I was sort of fortunate [to attract buyers who like nature]. I love the outdoors, active sports, and things like that,” Scaringe said. “But there’s also a strategy to realize that if we can build a product that enables and inspires people to be outdoors, it’s going to help people to want to be active participants in sustainability.”

Rivian signed a 2-year headlining sponsorship agreement with SXSW. It has planned plenty of fun activities and exhibits for the annual festival, including an Electric Roadhouse space inspired by Texas Roadhouse.

Rivian R1T and R1S demo drives are available at SXSW until the end of the event on March 15, 2025. The Rivian R2 will also be on display during the festival.

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Rivian announced the software update in a press release on Tuesday, featuring the newly launched Enhanced Highway Assist for its Gen 2 R1T and R1S, as well as a performance upgrade and a few other improvements. In a separate release, Rivian has also detailed some of the gears behind its approach to autonomy, highlighting that the Enhanced Highway Assist is available for use on as many as 135,000 miles of highway in North America.

Below is a video from CEO RJ Scaringe and VP of Autonomy and AI James Philbin, along with a few more details about the software update and some information from the automaker about the in-house Rivian Autonomy Platform.

Credit: Rivian

READ MORE ON RIVIAN: Rivian’s $6.6B federal loan for its Georgia Plant is in limbo

Enhanced Highway Assist for Gen 2 vehicles

The company’s latest software update is deploying the new Enhanced Highway Assist to Gen 2 vehicles, which will let drivers take their hands off the wheel for extended periods of time, not unlike Tesla’s Supervised Full Self-Driving (FSD). For the time being, the feature is being offered to owners for free, though it’s not clear if Rivian plans to eventually start charging for the suite.

Enhanced Highway Assist is able to control the vehicles’ steering, acceleration, and braking, and Rivian also uses an infrared cabin camera embedded in the interior rearview mirror to monitor driver attention.

Rivian Autonomy Platform

In the press release dedicated to its autonomy program, Rivian notes that its vehicles include a multimodal suite of 11 cameras and five radars, offering sensor redundancy and a 360-degree view. The company also says that its internally developed cameras have the highest resolution of any vehicle in North America, while its radar systems are intended to help detect objects over longer distances and in low-visibility conditions.

“We are excited to continue releasing new updates and dramatically expanding our autonomy features,” Philbin said. “Everything on our Gen 2 roadmap is capable with the hardware on our vehicles today.”

Rivian says its vehicles also include an on-board compute module that’s capable of more than 200 trillion operations per second, while the company’s machine learning models are trained on the latest ML research and transformer architectures.

Performance Upgrade for Dual-Motor (Gen 1 and Gen 2)

Rivian has also debuted a $5,000 Performance Upgrade for Gen 1 and Gen 2 vehicles with the Standard+, Large and Max battery packs, unlocking 665 horsepower and 829 lb.-ft. of torque. The upgrade also adds three new drive modes, dubbed Sport, Rally, and Soft Sand, to the currently available All-Purpose, All-Terrain, and Snow modes.

Owners can purchase the upgrade from the Rivian mobile app or account page, and it will be downloaded to the vehicle through an over-the-air (OTA) software update.

Credit: Rivian

Rally Mode comes to Performance Dual-Motor vehicles

The update also adds Rally Mode to Performance Dual-Motor vehicles, offering heightened throttle response, crisper steering on just about any terrain. To use the feature, drivers will simply need to switch into Off-Road mode, which will let them select Rally Mode.

Wheel Swap

Owners will now be able to change the vehicles’ wheel type in the settings menu, offering improved range estimates.

Credit: Rivian

Go Chime

Rivian has added an audible chime for when a stopped vehicle ahead starts moving, signaling to the driver that they can start driving too. The chime will first be added to the EV maker’s Gen 2 models, before later rolling out to Gen 1.

Side Mirror Auto-Tilt on Reverse

When drivers shift into reverse, Rivian’s sideview mirrors will now automatically tilt downward to show the curb and road, making parallel parking easier. This feature will also go out to both Gen 1 and Gen 2 vehicles.

Control Chargeport Door from Mobile App

Drivers will now be able to control their charging port door remotely using the mobile app, adding an extra layer of protection for those who walk away without closing it manually.

Tire Puncture Detection

Rivian has added proactive detection for tire punctures and slow leaks, set to notify drivers of a potential flat tire before it happens.

Rivian teams up with Ben & Jerry’s on an electric ice cream truck

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Rivian demo drives will be available at SXSW (South by Southwest) in Austin, Texas, starting March 11, 2025, from 11:00 am to 4:30 pm.

The company is offering demo drives for the R1T pickup truck and R1S SUV. Rivian’s SXSW demo drives will be available until the end of the festival on March 15, 2025. The Rivian R2 will also be on display at SXSW 2025, giving future customers a chance to interact with the upcoming electric vehicle (EV).

In December 2024, the American EV automaker signed a 2-year headlining sponsorship agreement with SXSW, an annual festival dedicated to tech and bringing a culture of professionals to Austin, Texas.

Rivian has fun activities and exhibits planned for SXSW 2025, including transforming its South Congress flagship space into “Electric Roadhouse,” inspired by Texas Roadhouse. The festival’s program includes panel discussions, concerts, drive-in movies, and more. Rivian CEO RJ Scaringe is expected to appear in this year’s keynote.

“We’re thrilled to bring our brand to life at SXSW with the Electric Roadhouse, a space that merges classic Americana with a vision for a sustainable future,” said Denise Cherry, Rivian Vice President of Marketing. “The festival’s creativity and adventurous spirit perfectly complement our own, and we can’t wait to share this experience with the community.”

SXSW 2025 starts later this week on March 7, 2025.

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