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Does Rivian's AI-Driven RAP Provide It a Competitive Edge?

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Key Takeaways

  • RIVN has launched the AI-driven Rivian Autonomy Platform with Level 2 driver assistance features.
  • The platform uses 55MP cameras and processes over 200 trillion operations per second.
  • Vertically integrated hardware lets RIVN process sensor data efficiently for ADAS performance gains.

Rivian (RIVN - Free Report) , an American EV manufacturer, has created its advanced driver assistance system (ADAS), known as the Rivian Autonomy Platform (RAP). This in-house platform features a more powerful computing system than that used in Rivian's earlier vehicles and is tailored specifically for its current and future models.

RAP provides Level 2+ autonomy, meaning it supports the driver with alerts and interventions, such as steering corrections and emergency braking, but it never takes full control of the vehicle. The system includes a comprehensive set of ADAS tools, stepping in only when necessary.

Standard on the R1T and R1S models, RAP’s features fall into two main categories: Driving Assist and Active Safety Assist. Driving Assist includes user-activated tools like Highway Assist, Adaptive Cruise Control and Lane-Change Assistance. Active Safety Assist includes automatic features aimed at preventing accidents, such as lane safety, lighting adjustments, parking and reversing aids, and collision mitigation. RIVN carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

With the introduction of its second-generation R1 platform, Rivian has significantly upgraded RAP. The vehicles now use a revamped perception system and computing setup, including 55-megapixel cameras and onboard processing power exceeding 200 trillion operations per second. The platform’s AI-driven design and vertically integrated hardware allow Rivian to efficiently collect and process high-quality, multi-modal sensor data, giving it a competitive edge in ADAS development. Other automakers like Toyota Motor Corporation (TM - Free Report) and Waymo, a subsidiary of Alphabet Inc. (GOOGL - Free Report) , and Tesla (TSLA - Free Report) are also making progress on the development of their respective autonomous vehicle platforms.

In April, Toyota and GOOGL’s Waymo reached a preliminary agreement to explore a collaboration focused on the development of a new autonomous vehicle platform. Toyota and GOOGL’s Waymo aim to combine their respective strengths to develop the platform. In parallel, the companies will explore how to leverage Waymo's autonomous technology and Toyota's vehicle expertise to enhance next-generation personally owned vehicles. 

Tesla's Full Self-Driving (FSD) system is a sophisticated driver-assistance technology designed to allow Tesla cars to navigate various driving conditions autonomously. FSD builds on Tesla’s existing Autopilot features and is sold as an optional upgrade. The company has long been a leader in autonomous vehicle development. Tesla released its last major FSD update, v13, in December 2024.

Rivian’s Price Performance, Valuation and Estimates

Rivian has outperformed the Zacks Automotive-Domestic industry year-to-date. RIVN shares have gained 4.6% against the industry’s decline of 18.3%.

YTD Price Performance 

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From a valuation perspective, Rivian appears undervalued. Going by its price/sales ratio, the company is trading at a forward sales multiple of 2.47, lower than its industry’s 2.64.
 

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Image Source: Zacks Investment Research


 

EPS Estimates Revision

The Zacks Consensus Estimate for 2025 and 2026 EPS has moved down 3 cents and up 2 cents, respectively, in the past 30 days. 

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Image Source: Zacks Investment Research

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