Rivian Expands Hands-Free Driving Amid Financial & Market Challenges

Rivian Automotive RIVN recently introduced a major software update for its second-generation R1S and R1T vehicles, introducing hands-free highway driving via its new Enhanced Highway Assist system. This feature allows drivers to remove their hands from the wheel on compatible highways, though they must remain attentive.The system uses an infrared camera in the rearview mirror to monitor the driver’s attention, similar to Ford Motor’s F BlueCruise and General Motors’ GM Super Cruise. Rivian is also planning to introduce an “eyes-off” driving feature in 2026, likely requiring additional hardware like LiDAR.While the company’s first-generation R1 models will not be receiving hands-free driving, RIVN has introduced other updates, including a new “Rally” mode for Dual-Motor Performance vehicles. This mode is available in Off-Road mode and enhances throttle response and steering for better control on difficult terrains like mud, dirt and ice. Furthermore, Rivian will allow owners to purchase the Performance Upgrade over-the-air for $5,000, boosting output to 665 horsepower and unlocking the latest drive modes like Sport and Soft Sand.Other improvements include adjustable wheel size settings, which previously needed a service appointment, automatic mirror tilt in reverse and a new “Go Chime” feature that alerts drivers when traffic starts moving. A tire puncture detection system has also been added to help drivers catch slow leaks before they become a major issue.The updates highlight Rivian’s efforts toward software innovation. They will also be hassle free for consumers as the improvements can be delivered remotely instead of requiring a visit to a dealership.Headwinds for RIVNRivian has been facing several challenges that are impacting its growth trajectory. The volatile regulatory environment, including Trump administration challenges to EV subsidies, tariffs and emissions rules that are expected to affect price and, consequently, demand, is a significant headwind. A soft 2025 delivery forecast of 46,000-51,000 vehicles — down from 51,579 in 2024 — reflects these challenges.Furthermore, Rivian operates in an intensely competitive market, with legacy automakers, like GM and F, as well as emerging ones, increasing their efforts to capture market share. U.S. President Trump’s endorsement of Tesla TSLA and its CEO Elon Musk is also expected to hurt Rivian’s prospects.To add to its challenges, Rivian has been burning cash, with high capital expenditures needed for its expansion in Normal and its new Georgia facility. While the company has been making significant cost reductions, achieving sustained profitability continues to be a hurdle.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ford Motor Company (F): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Rivian Automotive, Inc. (RIVN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks