Piper Sandler has upgraded electric vehicle maker Rivian and autonomous-driving technology firm Mobileye, arguing both companies hold a structural advantage over traditional automakers as the robotaxi market expands.
The investment firm identified Rivian as a likely major beneficiary of growth in autonomous ride-hailing, pointing to the company’s vertical integration across hardware, software, and manufacturing as a key differentiator. That control over its own technology stack, the firm suggested, positions Rivian to move faster than rivals dependent on external suppliers.
The upgrade reflects a broader thesis that companies built around software-defined vehicles and in-house autonomy capabilities are better placed to capture value as transportation shifts toward driverless fleets.
Mobileye, which develops advanced driver-assistance and self-driving systems, was cited alongside Rivian as a firm with an edge in supplying the underlying technology that legacy manufacturers increasingly need to source externally.
The robotaxi sector has drawn intensifying investor attention as pilot programs move toward commercial deployment. Fully autonomous ride-hailing services have begun operating in select markets, and analysts expect the segment to scale significantly over the coming years.
Rivian has been strengthening its financial and technical footing through partnerships. The company’s expanded joint venture with Volkswagen has channelled billions of dollars into shared software and electrical architecture, underscoring the value legacy automakers place on Rivian’s engineering.
The momentum comes as competition in autonomous mobility accelerates worldwide. Robotaxi operators in China and Europe have advanced mass-production efforts and launched early commercial services, raising the stakes for firms seeking to define the next phase of the industry.
For traditional automakers, the challenge is twofold: retooling legacy manufacturing while developing or acquiring the software expertise that newer entrants have built from the ground up.
The upgrades signal growing confidence on Wall Street that vertically integrated players and specialised technology suppliers may outpace incumbents as autonomous transport matures. Whether that thesis holds will depend on the pace of regulatory approval, fleet deployment, and consumer adoption in the years ahead.