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 RIVN

Rivian 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.

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