Shares of Rivian $RIVN ( ▲ 8.63% ) surged more than 8% on Thursday, putting the EV maker on track for one of its best trading days of 2025. The move followed a bullish analyst upgrade and the rollout of a new hands-free driving feature that signals deeper software ambitions.
Baird upgraded Rivian to buy from hold and raised its price target nearly 79% to $25, writing that “2026 is the year of R2.” The firm pointed to improving execution, a clearer product roadmap, and growing confidence in Rivian’s next-generation vehicle lineup.
What Rivian’s “universal hands-free” update actually does
Rivian also announced a new “universal hands-free” driving feature that allows drivers to take their hands off the wheel across roughly 3.5 million miles of US and Canadian highways. The system works on roads with visible lane lines and is designed primarily for highway driving.
Despite the name, the feature has clear limitations. It does not stop at traffic lights or stop signs, follow navigation routes, or make turns. Drivers still need to remain attentive and ready to take control, keeping the system firmly in the advanced driver assistance category rather than full autonomy.
Why investors are paying attention now
The update was unveiled at Rivian’s AI Day last week, where the company also hinted at longer-term ambitions around autonomy and even robotaxis. While those ideas remain early, the combination of tangible software improvements and rising optimism around the upcoming R2 platform is helping shift sentiment.
For a stock that has spent much of the year under pressure, investors appear willing to give Rivian credit for showing progress on both technology and product strategy.