Rivian’s Stock Pops Friday. The EV Maker Is Leaning Into Autonomy and AI

Are investors ready to buy into Rivian’s vision for its autonomous vehicles and AI?

Shares of the electric vehicle maker surged 12% Friday, erasing yesterday’s losses after an “Autonomy & AI Day” event where Rivian (RIVN) announced a custom AI chip and plans to roll out enhanced self-driving software. The move higher came during a down day for broader markets as worries about an AI bubble continued to pressure shares of big AI names such as Broadcom (AVGO) and Micron Technology (MU).

Rivian said Thursday it will soon issue an update to its second-generation R1 vehicles that will expand the ability for hands-off driving to more than 3.5 million miles of roads in the U.S. and Canada, compared to under 150,000 miles previously. That would bring Rivian closer to Tesla’s (TSLA) base Autopilot system in covering most roads in the U.S., Barclays analysts said in a note following the event.

The analysts said the development, along with other updates, showcased Rivian’s shift in strategy to focus more on autonomous and AI features as a way to differentiate its offerings in the face of a challenging EV market, and open up new high-margin revenue streams through subscriptions and licensing.

Rivian Prepares To Roll Out Autonomy+ Subscription Next Year

Rivian said it plans to launch a subscription platform called Autonomy+ early next year that will deliver more advanced driving assistance features and be continuously updated as Rivian develops the software, much like Tesla’s Full Self Driving (Supervised) service. Rivian expects to offer its subscription at $49.99 per month, or a one-time $2,500 purchase. Tesla’s more advanced system costs $99 per month.

Rivian also unveiled its own AI chip designed to replace the chips it currently buys from Nvidia (NVDA) to power its self-driving software. The Rivian chip and a LiDAR, or Light Detection and Ranging, sensor system are each expected to be approved and added to Rivian’s new R2 vehicles by late next year. The company is looking to add an AI voice assistant to first and second-generation R1 vehicles early next year.

Barclays analysts told clients that while there are a number technical hurdles for Rivian to clear as it looks to catch up with Tesla and other self-driving competitors, they “appreciate this strategy, reflecting the strength of RIVN’s efforts in vertical integration, and reminding us that aside from Tesla, they are taking clear efforts to lead on software-defined vehicles in the west.”

While Rivian did not explicitly include plans for a fleet of robotaxis in Thursday’s presentation, CEO RJ Scaringe hinted that the company’s efforts in self-driving could also enable Rivian to pursue rideshare opportunities in the future.

Offering a robotaxi service or providing its vehicles to ridesharing services once they are capable of self-driving would put Rivian in closer competition with Tesla, which launched a test pilot of its robotaxi service in Austin, Texas earlier this year.

While still well off their highs in 2021, Rivian shares have climbed close to 40% in 2025, outpacing the S&P 500’s 16% gain.

This article has been updated since it was first published to reflect more recent price values.