Benchmark sees EV growth and Amazon partnership as drivers for future success

After Benchmark initiated coverage with a Buy rating, Rivian Automotive (NASDAQ:RIVN) attracted renewed interest as the electric car maker had the potential to capture a significant portion of the expanding electric vehicle industry over the next 10 years.

With further acceleration in 2026 and 2027 as average cost of sales declines and charging infrastructure expands, benchmark analyst Mickey Legg presented a favorable future for Rivian, expecting domestic EV production to increase starting in 2025. The company highlighted Rivian Amazon’s (AMZN) and Volkswagen’s highly regarded vehicle selection and relationships, hoping for positive gross profit in the coming quarter.

Legg also emphasized that Rivian’s commercial vehicle sector is a consistent source of revenue to enable expansion on the consumer side and expects the business to scale. Although Benchmark’s analysis highlights Rivian’s resilience and growth potential, investor sentiment is mixed, reflecting broader concerns about a possible decline in government support for the electric vehicle sector.

Reflecting the market’s growing confidence in its approach and alliances, Rivian’s stock has risen over 40% in the previous month and 24% in the last five days.

This article first appeared on GuruFocus.